What is a prorate fee?

A prorate fee is a charge that is adjusted based on the proportion of time or usage. It typically applies when services are billed for a partial period rather than a full billing cycle, such as when a customer starts or cancels a service mid-month. The fee is calculated by dividing the total cost by the number of days or hours in the billing period and then multiplying by the number of days or hours used. This ensures that customers only pay for the portion of the service they actually utilized.