Prorated Bonus Calculator

Formula

To calculate the Prorated Bonus (PB):

\[ \text{PB} = \frac{A \times D}{T} \]

Where:

$\text{PB}$ 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)

What is a Prorated Bonus?

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

Example Calculation 1

Let's assume the following values:

Annual Bonus Amount (A) = $12,000
Number of Days Worked (D) = 150 days
Total Number of Days in Bonus Period (T) = 365 days

Step 1: Use the formula:

\[ \text{PB} = \frac{12000 \times 150}{365} = \frac{1800000}{365} \approx 4931.51 \]

The Prorated Bonus is $4931.51.

Example Calculation 2

Let's assume the following values:

Annual Bonus Amount (A) = $5,000
Number of Days Worked (D) = 90 days
Total Number of Days in Bonus Period (T) = 180 days

Step 1: Use the formula:

\[ \text{PB} = \frac{5000 \times 90}{180} = \frac{450000}{180} = 2500 \]

The Prorated Bonus is $2500.