Prorated rent charges you only for the days you actually live in the unit. Move in on the 21st, pay for ten days, not the whole month. The catch: landlords do not agree on how to turn monthly rent into a daily rate. Three conventions are in common use, and they give three different answers. This guide shows all three, a worked example for each, and how to check which one your lease uses.
Run your own amounts through the prorated rent calculator on this site to see the exact result.
The base formula
Every method starts from the same place:
- Daily rent = monthly rent ÷ the day base the lease specifies
- Prorated rent = daily rent × days you occupy the unit that month
Count the days inclusive of the move-in date. If you move in on March 25 and the month has 31 days, you occupy 7 days: the 25th through the 31st.
Method 1: actual days in the month
The most common method, and the one most states default to when the lease is silent. Divide by the real length of the month in question.
Example: $1,500 rent, move-in February 10 in a non-leap year. February has 28 days, so daily rent is $1,500 ÷ 28 = $53.57. Days occupied: February 10 through 28, which is 19 days. Prorated rent: 19 × $53.57 = $1,017.86.
Method 2: the banker's month
Some leases fix the divisor at 30 regardless of the calendar. The point is consistency: every month prices the same way, and February tenants do not get a worse daily rate than March tenants.
Same move-in, banker's month: $1,500 ÷ 30 = $50 per day. Prorated rent: 19 × $50 = $950. That is $67.86 less than method 1 for the identical dates, purely from the divisor.
Method 3: the yearly average
Annual rent divided by 365 gives one daily rate for the whole year. This method appears most often in corporate leases and some rent-stabilized markets.
Annual rent is $1,500 × 12 = $18,000. Daily rate: $18,000 ÷ 365 = $49.32. Prorated rent: 19 × $49.32 = $937.04, the cheapest of the three for this move-in.
The three answers side by side
| Method | Divisor | Daily rate | 19 days |
|---|---|---|---|
| Actual days | 28 | $53.57 | $1,017.86 |
| Banker's month | 30 | $50.00 | $950.00 |
| Yearly average | 365 | $49.32 | $937.04 |
None of these is wrong. The question is only which one your lease names. Look for a clause titled "proration", "partial month", or "first month's rent"; the divisor is usually stated there in one sentence.
Move-outs work the same way
When you leave mid-month, the landlord prorates the final month with the same formula and the same divisor. Days occupied run from the 1st through your move-out date, inclusive of that date if you hand over keys on it. Walk through the unit with the landlord on the last day and get the prorated figure in writing before the security deposit settlement, so the deposit math and the rent math do not get mixed up.
Three things to check before you pay a prorated amount
- The lease clause beats the calculator. If the lease says 30, the landlord quoting actual days in a 31-day month is overcharging you quietly.
- February cuts both ways. Under actual-days proration a February move-in carries the highest daily rate of the year. Under the yearly average it does not. If your move-in date is flexible and the lease uses actual days, March 1 beats February 25.
- Utilities are usually separate. Prorated rent covers rent only. If utilities pass through the landlord, they need their own day-based split, the same logic as our guide on splitting utility bills.
Run your own numbers: enter the monthly rent and your days of occupancy. The calculator returns the prorated amount instantly, free and no signup.
Related guides
Splitting rent between roommates: days, room size, or both How to calculate pro rata: the formula and 3 worked examples What does "pro rata" mean?Frequently asked questions
How is prorated rent calculated?
Divide the monthly rent by the day base your lease uses (actual days in the month, a fixed 30, or annual rent ÷ 365), then multiply by the days you occupy the unit, counting the move-in day itself.
Which proration method do most landlords use?
Actual days in the month is the most common default. Banker's-month (30-day) clauses appear in corporate and larger property-management leases, and the yearly-average method shows up in rent-stabilized markets.
Do I pay prorated rent for the month I move out?
Yes, if you leave before the month ends. The final month is prorated with the same divisor as your move-in month, counting from the 1st through your move-out date.
Why is my daily rate higher in February?
Under actual-days proration, the same monthly rent spread over 28 days yields a higher daily rate than over 31 days. Leases with a fixed 30-day or yearly-average divisor avoid this swing.
Is prorated rent charged instead of a deposit?
No. The security deposit is separate and usually equals one month's full rent. Prorated rent replaces only the rent charge for the partial month.