Prorated Bonus Calculator
Calculate a prorated bonus for new hires, leavers, unpaid leave, part time schedules and partial year eligibility.
Educational estimate only. This is not payroll, tax, legal or HR advice.
Worked examples
Use days from start date to the period end.
Use eligible service days before termination, if the plan allows payout.
Apply FTE percentage and subtract unpaid leave days if the plan requires it.
Related tools and next steps
FAQ
How do you prorate a bonus by days?
Multiply full target bonus by eligible days divided by total period days, then apply performance or FTE factors if relevant.
Can unpaid leave reduce a prorated bonus?
Many plans subtract unpaid leave or ineligible days before calculating the eligible fraction.
Should I use daily or monthly proration?
Use the method written in the plan. Daily proration is more precise; monthly proration is simpler but less exact.
Worked example: a mid-year starter
An employee eligible for a $10,000 annual bonus who started on 1 July is in the plan for 184 of 365 days. The prorated bonus is 10,000 × (184 ÷ 365) = $5,041.
Some plans prorate by whole months instead of days — check your policy.
Prorated bonus questions
How do you calculate a prorated bonus?
Multiply the full bonus by the eligible days divided by the total days in the bonus period. For monthly proration, use eligible months ÷ 12.
Do mid-year joiners get a full bonus?
Usually not. Most plans prorate the bonus for the portion of the period worked, unless the policy states a full bonus regardless of start date.
Is a bonus prorated for leavers?
It depends on the plan. Some pay a prorated bonus for time worked; others require active employment on the payment date, paying nothing to leavers.
Day-based or month-based proration?
Day-based is the most precise. Month-based proration rounds to whole months and is simpler but slightly less accurate.