pro-rata
Definition
Pro-rata means dividing or distributing something proportionally based on a share of the whole. If you only use a service for part of a period, you only pay for the portion you actually used rather than the full amount.
Example
If your business software subscription costs $120 per year and you cancel after 3 months, a pro-rata refund would give you back $90 because you only used one quarter of the year.
Watch Out
Some contracts specifically state they do NOT offer pro-rata refunds, so always check the cancellation terms before signing up for any annual service.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.