Boneyard Tools

How to prorate rent: the three common methods

Actual days, flat 30-day month and yearly daily rate compared, with worked numbers and how move-in versus move-out timing changes the total.

Why partial months need proration

Leases are quoted per month, but tenants rarely move in on the first and out on the last day. Proration converts the monthly rent into a daily rate and charges only for the days the unit is actually held. The landlord collects a fair amount and the tenant avoids paying for days they did not live there. The only real decision is which daily rate to use, because the month length you divide by changes the answer.

Actual days versus a flat 30 days

The actual-days method divides the rent by the true number of days in that month, so a 31-day month has a lower daily rate than a 28-day February for the same rent. The flat 30-day method ignores the calendar and always divides by 30, which keeps the daily rate identical every month and is easy to reconcile. In a 31-day month the flat method charges slightly less per day, while in February it charges more, so the two can disagree by a few dollars on the same move-in date.

The yearly daily rate

Some leases spread the annual rent evenly by taking the monthly rent times 12 and dividing by 365. This produces one constant daily rate for the whole year, which many property managers prefer because a partial January costs the same per day as a partial July. For a $1,500 rent that daily rate is about $49.32, close to but not the same as the $50.00 you get from a 30-day month. Over a full month the small daily differences roughly cancel out.

Move-in and move-out timing

For a move-in you usually count from the move-in date through the last day of the month, so moving in on the 21st of a 30-day month is 10 occupied days. For a move-out you count from the first of the month through the final day of tenancy. Always confirm with your lease whether the move date itself counts as an occupied day, because including or excluding it shifts the total by one day of rent. Enter that agreed day count into the tool to see the exact figure.

Frequently asked questions

Is prorated rent rounded up or down?

This calculator rounds to the nearest cent rather than always up or down. Leases vary, so if yours specifies rounding to the nearest dollar you may need to adjust the final figure by hand.

Which method gives the lowest first month?

It depends on the month. In a 31-day month the flat 30-day and yearly daily methods usually produce a lower daily rate than actual days, while in February the actual-days method is the cheapest per day.

Can proration ever exceed the full monthly rent?

With the actual-days method, no, because occupying every day of the month just returns the full rent. The flat 30-day method can exceed it if a 31-day month is fully occupied, since 31 times the daily rate is more than the monthly amount.