How to Calculate Prorated Rent

Prorated rent is a partial rent payment based on the number of days a tenant occupies a property within a billing cycle.

How to Calculate Prorated Rent

To determine the prorated rent amount, use this formula:

Prorated Rent = Daily Rent x Number of Days Occupied

Where:

  • Daily Rent = Monthly Rent ÷ Number of Days in the Month

  • Number of Days Occupied = The total days the tenant will live in the property within that billing cycle

Step-by-Step Calculation

  1. Determine the Daily Rent

    • Divide the monthly rent by the number of days in that specific month (e.g., 28, 29, 30, or 31 days).

  2. Multiply by the Number of Days Occupied

    • Count how many days the tenant will be in the property for that month.

    • Multiply that number by the daily rent.

Example Calculation

Scenario:

  • Monthly rent: $2,500

  • Tenant moves in: April 12

  • Standard billing cycle: 1st of the month

Step 1: Calculate Daily Rent

April has 30 days, so the daily rent is:

$2,500 ÷ 30 = $83.33

The daily rent is $83.33 per day.

 

Step 2: Multiply by Days Occupied

The tenant occupies the property from April 12 to April 30, which is 19 days.

$83.33 x 19 = $1,583.33

The prorated rent for April is $1,583.33.

Additional Considerations

  • Leap Year Adjustments: February may have 28 or 29 days, affecting the daily rent calculation.

  • Proration calculation starts on the first day of occupancy! Many owners and residents forget to count the first day of occupancy when calculating their proration