Confused about prorated rent calculations? You're not alone. Whether you're moving in mid-month or need to calculate partial rent for a tenant, this guide will make prorated rent calculations crystal clear. We'll walk through everything step-by-step, using real-world examples that anyone can understand.
Before diving into specific examples, let's understand the basic formula:
This method is the most accurate and widely accepted approach.
Monthly Rent: $1,200
Move-in Date: March 15th
Days in March: 31
Days of Occupancy: 17 (March 15-31)
Step 1: Calculate daily rent
$1,200 ÷ 31 = $38.71 per day
Step 2: Calculate prorated amount
$38.71 × 17 days = $658.07
Some landlords prefer using a standard 30-day month for all calculations, making the math more consistent across months.
Step 1: Calculate daily rent
$1,200 ÷ 30 = $40 per day
Step 2: Calculate prorated amount
$40 × 17 days = $680
This method is particularly useful for annual leases and provides the most precise daily rate.
Step 1: Calculate annual rent
$1,200 × 12 = $14,400 annual rent
Step 2: Calculate daily rent
$14,400 ÷ 365 = $39.45 per day
Step 3: Calculate prorated amount
$39.45 × 17 days = $670.65
When calculating prorated rent for moving out, the process is similar but requires attention to the last day of occupancy.
Monthly Rent: $1,500
Move-out Date: April 20th
Days of Occupancy: 20
Calculation: ($1,500 ÷ 30) × 20 = $1,000
When utilities are included in rent, you'll need to factor these in carefully:
Monthly Rent: $1,400 ($1,200 base + $200 utilities)
Days of Occupancy: 15
Base Rent Proration: ($1,200 ÷ 30) × 15 = $600
Utilities Proration: ($200 ÷ 30) × 15 = $100
Total Prorated Amount: $700
Always include both the move-in and move-out dates in your calculation. For example, if you move in on March 15th and stay until March 31st, that's 17 days, not 16.
Be careful to use the correct number of days for the specific month you're calculating, especially for February and months with 31 days.
Keep your daily rate calculation to at least two decimal places to ensure accuracy in the final amount.
The actual days in month method is generally considered the fairest, but any method is acceptable if agreed upon by both parties and consistently applied.
Yes, typically you count both the move-in and move-out days in your calculation. However, verify this with your lease agreement or landlord.
If using the annual method during a leap year, divide by 366 instead of 365. For monthly calculations, February would simply have 29 days instead of 28.
No, security deposits are typically not prorated as they're based on the full monthly rent amount, regardless of move-in date.
While understanding how to calculate prorated rent manually is important, several digital tools can help:
Calculating prorated rent doesn't have to be complicated. By following these steps and examples, you can confidently determine the correct amount for any partial rental period. Remember to always confirm the calculation method with your landlord or tenant, document everything, and keep clear records of all calculations.
Need to calculate prorated rent right now? Try our free prorated rent calculator above for instant, accurate results!