Prorated amounts are calculated by dividing the cost of a service by the number of days in the service period, according to Lucas Hall from Landlordology. The resulting number is then multiplied by the number of days the service is used to find the prorated amount.
Know MoreThe term "prorate" comes from the Latin "pro rata," which means "in proportion," according to Wikipedia. Prorated amounts typically apply to rent, insurance and other services that are paid for a specified time period. When an insurance policy is canceled, the prorated amount due is calculated by dividing the number of days used in the policy period by the total number of days for the policy. The result is multiplied by the policy premium to calculate the prorated amount due.
Learn more in Financial CalculationsProfit on return is calculated by subtracting a unit's selling price from the cost to produce, dividing that difference by the selling price and multiplying that number by 100. This equation gives the percentage margin of profit made on each unit.
Full Answer >Real interest rate is calculated by adjusting for the effects of inflation when compared to the nominal interest rate. The calculation formula is simple, as it only requires subtracting the rate of inflation from the nominal interest rate. The value left after subtraction is the real interest rate.
Full Answer >The hourly rate of pay is calculated by dividing the gross salary for a specific period by the number of hours worked in that same period. Gross salary is the amount earned prior to any deductions.
Full Answer >The Value Added Tax can be calculated from the total cost of an item by multiplying the total cost by the VAT fraction, according to HM Revenue & Customs. In the reverse, the formula to calculate the VAT of an item when only given the base price and the VAT rate is the base price times the percentage rate of the VAT.
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