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Prorated Refund Calculator

Work out a fair refund for the time you did not use.

Result

$65.75
$174.25
$0.66

How it is calculated

The refund is the share of the payment that matches the days you did not use. daily rate = total paid ÷ total days, refund = total paid × unused days ÷ total days and used amount = total paid × (total days − unused days) ÷ total days. The refund and the used amount always add up to what you paid. Total days must be above zero, unused days cannot be negative or larger than the total period, otherwise there is no result. Amounts are shown in US dollars. This is the pure day-by-day split: it does not subtract cancellation fees, setup charges, taxes or any minimum-term penalty that a contract may add, and it may differ from a provider's own policy.

Worked example

An annual plan costs 240 for 365 days and is cancelled with 100 days still unused. The daily rate is 240 ÷ 365 = $0.66 (0.6575 before rounding). The refund is 240 × 100 ÷ 365 = $65.75. The amount for the 265 days already used is 240 × 265 ÷ 365 = $174.25. Check: 65.75 + 174.25 = 240.00. Note that multiplying the rounded $0.66 by 100 would give $66.00, a little more than the exact $65.75 the tool shows.

Try this example →

Common mistakes

  • Entering the days used instead of the days unused. The third field is what is left of the period; if you have used 265 days of 365, enter 100.
  • Using the wrong total, such as 12 months for the total days. The total and the unused figure must be in the same unit; if you work in days enter 365, or enter 12 and 4 if you prefer months.
  • Counting a billing month as a fixed 30 days when the provider uses the actual calendar days (28 to 31). The tool does exactly what you enter, so use the real length of the period.
  • Expecting the result to be what the company will pay. Cancellation fees, non-refundable items, tax rules and the contract can lower or change the refund; this is only the proportional share.
  • Entering more unused days than the period contains. That is rejected rather than capped, so no result appears.

Sources

About this calculator

A prorated refund returns only the portion of a payment that corresponds to the unused part of a service period, rather than the full amount paid: the refund equals the amount paid multiplied by the fraction of the period that remains unused (days remaining divided by total days in the billing period).

Subscription services, insurance policies, memberships, and rentals commonly use this method when a customer cancels partway through a paid term, since it is considered a fairer outcome than either refunding nothing or refunding the full amount regardless of how much of the service was already used.

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Comments (1)

  • Editorial team

    Use the pair of results as a cross-check on a provider's quote: the refund plus the used amount must equal what you paid, so if their offer is smaller, the gap is whatever fees or rules they apply. The tool only does the proportional day split. What kind of plan are you cancelling, a gym, software or insurance, and how did the provider's figure compare with this one?

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