Closing Proration Calculator

Closings prorate items as of close. This calculator splits.

Monthly rent

Annual tax

Annual insurance

Closing day of month

Days in month

Buyer credits

$15,973

Seller debits

$2,564

Net proration

$13,408

How the math works

Buyer credit: rent proration for days owned + seller's unpaid tax share. Seller debit: seller's tax share + insurance used.

Mid-month closing on $28k rent: buyer gets ~$14k rent credit. Tax share split ~48%. Settlement statement shows all lines — check with independent review before signing.

How to Use

Enter monthly rent.
Enter annual property tax.
Enter annual insurance.
Enter closing day of month.
Enter days in month.
Read buyer/seller splits.

Frequently Asked Questions

What prorates?

Rent (seller keeps through closing day; buyer gets balance). Property tax (seller owes through closing day's share). Insurance (seller refunds unused portion to buyer or splits). Utilities. Pre-paid items (HOA, service contracts). CAM estimates.

Methodology?

Standard: 30-day month (banker) or calendar-day. Calendar more accurate but fiddly. PSA specifies. Day of closing: seller's typically (possession transfers midnight). Consistent methodology across prorated items avoids dispute.

Settlement?

Title company or escrow agent produces HUD-1 / settlement statement showing all prorations. Buyer credited for seller's portion; seller debited. Final wire adjusts for net. Disputes resolved pre-closing; last-minute surprises painful.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.