Understanding Pro-Rata Value Calculations

Understanding Pro-Rata Value Calculations

ALTIVOSponsor Management

This article explains how Altivo calculates pro-rata values for allocations. It covers the five formula variants (per week, per month, per year, once-off, per event), worked examples for each, and explains the relationship between pro-rata value, agreed value, and discount.

Allocations > Pro-Rata Value

What is a pro-rata value?

The pro-rata value is the calculated fair-market value of an allocation based on the asset's price, duration type, allocation period, and units allocated. The agreed value is what the school and sponsor actually agree. The discount is the difference (pro-rata minus agreed, minimum R0).

What are the five formulas?

Duration typeFormulaExample (1 unit)
Per weekprice x units x (days / 7)R500/wk x 1 x (122/7) = R8,714.29
Per monthprice x units x (days / 30.44)R2,000/mo x 1 x (303/30.44) = R19,908.02
Per yearprice x units x (days / 365)R24,000/yr x 1 x (184/365) = R12,098.63
Once-offprice x units (no time calc)R5,000 x 1 unit = R5,000.00
Per eventprice x units (no time calc)R1,000/event x 3 events = R3,000.00

Note: 30.44 is the average days per calendar month (365 / 12). The calculation uses exact calendar days, not rounded months.

What happens with unpriced assets?

If an asset has no price set (null), no pro-rata value is calculated and the suggested value field is left blank. The agreed value field is fully editable with no suggestion shown.

Frequently asked questions

Why is the value slightly different from my manual calculation?

Altivo uses exact calendar days, not rounded months or weeks. A six-month allocation is calculated on the actual number of days between the start and end date, not on 6 x 30 = 180 days.

Can I change the pro-rata value?

No. The pro-rata value is always system-calculated and read-only. You can change the agreed value using the pencil unlock button, and the discount adjusts automatically to reflect the difference.

What happens if the asset's price changes after an allocation is created?

Existing allocations keep their original pro-rata and agreed values. Price changes on the asset only affect future allocations created after the change.

Why is 30.44 used instead of 30 for monthly calculations?

30.44 is the average number of days per calendar month (365 / 12). Using 30 would undercount by about half a day per month. Using 30.44 gives a more accurate fair-market value over the actual allocation period.

Last updated: March 2026  |  Version 1.0

© Copyright d6 group (Pty) Ltd.
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