How to Prorate Rent

Why do I need to prorate rent?

Rent proration is used to calculate the rent amount due for any month that a tenant does not stay for the entire month.

How do I calculate prorated rent?

In order to calculate the prorated rent amount you must take the total rent due, divide it by the number of days in the month to determine a daily rent amount. You then multiply the daily rent amount by the number of days the tenant will be occupying the property to generate the prorated amount for the partial month.

What if the rent is due on a day other than the first?

This calculator will also calculate prorated rent for partial periods that span two different months with a different number of days. Just enter the rent amount, due date, and move-in date to get the prorated rent. We will show a sample of this calculation below.

How to Prorate rent with a billing date of the 1st.

Example: Move in August 20th with a rent due date of September 1th.

- $1000.00 / 31 = $32.26 x 12 days = $387.10

- Start with the number of days in the month the tenant will move in.
- Take the amount of monthly rent and divide by the number of days in the month the tenant will move in to get the amount owed per day. (Tenant moves in on Aug. 20th. There are 31 days in Aug.)
- Find the number of billable days in month by subtracting the number of days in the month plus one. For Example, if the move in day is August 5th , subtract 5 from 31 plus 1 is 27 billable days.
- Multiply the amount per day by the number of billable days in the month to find your prorated amount.

How to Prorate rent with a billing date OTHER THAN the 1st.

Example: Move in August 20th with a rent due date of September 15th.

- $1000 / 31 = $32.2581 per day for August
- $1000 / 30 = $33.3333 per day for September
- $32.2581 x 12 days = $387.0968 for August
- $33.3333 x 14 days = $466.6667 for September
- $387.0968 + $466.6667 = $853.76

- Start with the rent and divide by the number of days of the first month in question to get the amount per month of month 1. (Example A)
- Divide the rent by the number of days in the second month to get the amount per month of month 2. (Example B)
- Find the number of billable days in the first month by subtracting the number of days in the month plus one. For Example, if the move in day is August 20th , subtract 20 from 31 plus 1 is 12 billable days.
- Find the number of billable days in the second month by subtracting the number of days in the month plus one.
- Multiply the amount per day of month 1 times the number of billable days of month 1 to get the prorated amount of month 1. (Example C)
- Multiply the amount per day of month 2 times the number of billable days of month 2 to get the prorated amount of month 1. (Example D)
- Add the prorated amount of month 1 to the prorated amount of month 2 to get the total prorated amount. (Example E)

Elements to keep in mind when prorating rent:

- Leap year
- Day on month billed (Rent due date)
- If the rent spans months.
- Number of days in the first month
- Number of days in the second month
- Amount per day in the first month
- Amount per day in the second month
- Number of billable days in first month
- Number of billable days in second month
- Different amount per day depending on month

Why do we give the amount four decimal places out?

(A note on rounding errors.)

The reason that we show the amounts per day to four decimal places is to show the amount more accurately. When using our calculator we calculate the numbers to ten decimal places. This is to ensure a higher accuracy when reporting the prorated amount. Using numbers two decimal places can affect the total amount due. Only the final prorated amount is rounded to ensure deviation will be within a half cent.

Prorate Calculator

Monthly Rent:

$

Move in Date:

Bill On:

I want this calculator on my website!

Copy the embed code below to incorporate this calculator on your website.

[ Select All ]