How to calculate prorated rent: three methods, with examples

The free prorated rent calculator does all three, shows every day it counts and exports a breakdown you can send to the tenant.

What are the three ways to prorate rent?

Use the method in the tenancy agreement or lease. If it does not say, agree one in writing before the first payment, because the methods give different answers.

How do you prorate rent by days in the month?

Divide the monthly rent by the number of days in that month, then multiply by the days charged.

Example: rent is £1,800 a month and the tenant moves in on 19 October. October has 31 days. Counting the 19th, the tenant is charged for 13 days, the 19th to the 31st.

£1,800 ÷ 31 × 13 = £754.84

The daily rate changes from month to month. In a 28-day February, the same rent is £64.29 a day; in a 31-day month it is £58.06.

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How do you prorate rent using annual rent ÷ 365?

Multiply the monthly rent by 12 to get the annual rent, divide by 365 for a daily rate, then multiply by the days charged.

Example: £1,800 × 12 = £21,600 a year. £21,600 ÷ 365 = £59.18 a day. Thirteen days is £769.32.

This method gives the same daily rate all year, which many people find fairer, and it is widely used in the UK, including when working out rent owed at the end of a tenancy.

How do you prorate rent on a 30-day month?

Divide the monthly rent by 30, then multiply by the days charged, treating a full calendar month as a full month’s rent.

Example: £1,800 ÷ 30 = £60 a day. Thirteen days is £780.00.

It is simple to work out by hand, but it slightly overcharges in long months and undercharges in February.

Which method gives the lowest figure?

For the same 13 days in October:

The difference is small for one move-in, but it adds up across a portfolio, and a tenant who works it out differently will ask. Showing the method and the day count, as the calculator’s CSV does, avoids the argument.

Do you count the move-in day and the move-out day?

The move-in day is normally charged, because the tenant has the keys that day. Whether the last day is charged depends on the agreement: many tenancies end at midnight on the last day, so it is included. The calculator always includes the start date and lets you choose for the end date.

How do you prorate rent across two months?

Work out each month separately with its own number of days, then add them. A tenancy from 25 January to 10 February is 7 days in January and 10 days in February. With the days-in-month method, January uses ÷ 31 and February uses ÷ 28, or ÷ 29 in a leap year. The calculator splits the period by month automatically and rounds each month to the penny before adding.

Should the first payment be prorated or a full month?

Either works if the agreement says so. Some landlords take a prorated amount for the first part-month and then collect on the 1st. Others take a full month upfront and keep the rent date as the move-in date. Changing the rent date later is usually done by prorating the gap between the old and new dates.

What else changes at the start of a tenancy?

The move-in day is when the condition of the property should be recorded. Use the move-in and move-out inspection checklist and the free inspection report builder to photograph and note each room. If you are working out whether the rent stacks up in the first place, try the rental yield calculator.