A pro rata refund returns the unused portion of what you paid, scaled to the time remaining. Cancel an annual plan after four months and a pro rata policy gives you back the other eight months. You get one only when the seller's cancellation terms allow it, so the calculation is only half the picture.
Run your own amounts through the pro rata calculator on this site to see the exact result.
The formula
Refund = price paid × (unused time ÷ total period). The unused time is the period you bought minus the time you used, measured in days or months, whichever the seller uses.
Annual plan example
- Annual subscription: $120, paid up front on January 1
- You cancel May 1, after 4 months of use
- Unused: 8 months. Refund: $120 × (8 ÷ 12) = $80
Daily precision changes the answer slightly. Cancel May 15 and a daily calculation gives $120 × (230 ÷ 365) = about $75.62, while a monthly calculation rounds May as fully used and returns $70. Sellers that advertise "pro rata refunds" usually state which one they use in the terms page.
When refunds are not pro rata
- No refund policy. Many digital subscriptions refund nothing mid-cycle. The unused time is simply lost.
- Usage tiers. A phone plan with 50 GB used on a 100 GB tier may refund based on the next tier down, not on days.
- Fixed cancellation fees. Some services deduct an administration fee from the pro rata amount, or charge a short rate that prices the used portion at a higher monthly rate.
Compute your refund: enter the price paid and the used fraction. The calculator returns the pro rata amount instantly, free and no signup.
How to check before you pay
Search the terms page for "cancellation", "refund", and "pro rata". If the policy is silent, assume no refund and treat the annual discount as compensation for the lock-in risk. The cheaper annual price only wins if you are reasonably sure you will stay for most of the term.
Related guides
Pro rata insurance premiums explained How to calculate pro rata: formula and worked examples What does "pro rata" mean?Frequently asked questions
How do I calculate a pro rata refund?
Multiply the price you paid by the unused fraction: unused time divided by total period. A $120 annual plan cancelled after 4 months has 8 months unused, so the refund is $80.
Are all subscription refunds pro rata?
No. Many subscriptions refund nothing mid-cycle. Pro rata refunds exist where the terms page promises them, and even then a fixed cancellation fee or usage tier may reduce the amount.
Does pro rata use months or days?
Depends on the seller. Monthly rounding treats any started month as used; daily calculation is more precise and slightly more generous to the customer. The terms page usually states which one applies.