Enter the annual bonus amount, the number of days worked in the bonus period, and the number of days in the bonus period to determine the prorated bonus.

## Prorated Bonus Formula

The following formula is used to calculate the prorated bonus.

PB = (A * D) / T

Variables:

• PB is the prorated bonus ($) A is the annual bonus amount ($) D is the number of days worked in the bonus period (days) T is the total number of days in the bonus period (days)

To calculate the prorated bonus, multiply the annual bonus amount by the number of days worked in the bonus period. Then divide the result by the total number of days in the bonus period.

## What is a Prorated Bonus?

A prorated bonus is a portion of a bonus that is given to an employee based on the proportion of the year they have worked. This is often used when an employee starts or leaves a job partway through the year, or if they have only worked part-time. The prorated bonus ensures that the employee receives a fair amount of the bonus relative to the time they have worked.

## How to Calculate Prorated Bonus?

The following steps outline how to calculate the Prorated Bonus.

1. First, determine the annual bonus amount (A) ($). 2. Next, determine the number of days worked in the bonus period (D) (days). 3. Next, determine the total number of days in the bonus period (T) (days). 4. Next, gather the formula from above = PB = (A * D) / T. 5. Finally, calculate the Prorated Bonus. 6. After inserting the variables and calculating the result, check your answer with the calculator above. Example Problem : Use the following variables as an example problem to test your knowledge. annual bonus amount (A) ($) = 5000

number of days worked in the bonus period (D) (days) = 60

total number of days in the bonus period (T) (days) = 90