Prorated Insurance Refund Calculator

How it is calculated

The tool applies straight pro-rata proration, then subtracts a flat fee: unused_days = term_days − days_used, unused_premium = premium_paid × (unused_days ÷ term_days) and refund = max(0, unused_premium − cancellation_fee). The premium and fee are money amounts, the term and days used are counted in days, and the fee is optional (0 when blank). The refund can never go below zero, so a fee larger than the unused premium simply gives $0.00. Days used above the term length, a term of zero days, or any negative value returns no result. It does not model short-rate cancellation, which some insurers apply instead; the pro-rata rule and fees differ by insurer, policy type and region.

Common mistakes

• Typing the days remaining in the days-used field. The tool wants days already elapsed since the policy started, and works out the unused part itself.
• Using the monthly instalment as the premium when you paid the whole term up front, or the other way round. The premium field must match the term you enter.
• Entering a 6-month policy as 6 in the term field. The term is in days, so use about 182 or the exact number of days.
• Assuming a fee is taken off the premium before proration. Here the fee is subtracted after the unused premium is worked out, so ask your insurer which order they use.
• Expecting a refund after nearly the whole term has passed. When the unused premium is smaller than the fee, the result is $0.00, not a negative amount.