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If your tenant doesn’t move in on the first day of the month, how do you work out how much rent is due for that first payment period? Use our Prorate Calculator to easily calculate the prorated rent.
Prorated rent is simply the way to work out how much rent is due when a tenant hasn’t been in the lodgings for the full billing cycle.
For example, they move into your property on the 14th of the month but the billing cycle begins on the 1st of the month. You have to work out how much rent they owe for the 16/17 days remaining in that billing cycle.
You will need to calculate prorated rent to accurately reflect the amount of time your tenant has actually stayed in your property.
If a tenant had moved into the property half way through a monthly lease period, this calculator is useful to figure out how much the tenant needs to pay.
While it’s easier to simply use a prorate calculator, you can use some basic math to manually determine prorated rent. We have included these equations below to help give you an idea as to how calculating prorated rent actually works. Knowing how to calculate it manually will allow you to check any online calculator you might use.
The most basic method is to calculate rental costs per day. Once you’ve worked that out you multiply by the remaining days left in the billing cycle.
1. Monthly Rent / Days of Month = Daily Rate
2. Days of Month – Date tenant moves in + move-in day = Days left in Billing Cycle
3. Daily Rate * Days left in Billing Cycle = Prorated Rent
The Prorated rent for this example
$640.08
Prorating rent ensures fairness in billing. It aligns payment with the actual time the property is occupied, preventing overpayment or underpayment.
To calculate prorated rent, divide the total monthly rent by the number of days in the month to get the daily rent amount. Multiply the daily rent by the number of days the tenant will occupy the property during that specific month.
If the rent due date isn't the first day of the month, prorating involves determining the daily rate based on the monthly rent and dividing it by the number of days in the billing period. Then, multiply the daily rate by the number of days the tenant will occupy the property during that billing cycle.
For rent due on the 1st, calculate the daily rate using the total monthly rent divided by the days in a month. Then, multiply this daily rate by the number of days the tenant will be present in the property during that month.
