Calculate prorated refunds for unused service periods. Determine refund amounts based on total fee, total days, and unused days remaining.
When a service contract, subscription, or membership ends before the prepaid period is over, a prorated refund returns the unused portion of that payment. The exact amount depends on the contract method: straight daily proration, front-loaded schedules, step-down refund tables, grace periods, and any stated non-refundable charges.
This calculator shows the refund by policy type and makes each deduction visible, including non-refundable amounts, cancellation fees, and administrative percentages. It is useful for checking cancellation language, comparing refund policies, or reviewing a proposed refund statement before it is sent.
Refund disputes usually come from unclear proration methods rather than hard math. This page makes the daily-rate method, deductions, and policy assumptions visible so both sides can see how the retained amount and net refund were derived.
Daily Rate = Total Fee / Total Days Refund = Daily Rate × Unused Days Net Refund = Refund − Non-Refundable Amount
Result: $607.53 prorated refund
Daily rate = $1,200 / 365 = $3.2877/day. Unused portion = $3.2877 × 200 = $657.53. After subtracting $50 non-refundable: $607.53 net refund.
The most common proration method divides by calendar days. Some providers use 30-day months (360-day year) for simplicity, which slightly overstates the daily rate. Others prorate by billing cycles rather than days.
Most SaaS companies offer prorated refunds or credits when downgrading or cancelling annual plans. Monthly plans typically run until the end of the billing cycle without a refund. Check the provider's cancellation policy before subscribing.
Prorated refund disputes are common. Clear contract language specifying the proration method, effective cancellation date, and any non-refundable amounts prevents most disagreements. Always provide an itemized refund calculation to the customer.
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This page calculates the refund according to the selected policy model. The linear option uses a daily pro rata calculation based on total fee divided by total days, while the declining-balance, step, and grace-period models are explicit site-defined policy shapes intended to mirror common contract refund patterns. After the gross refund is calculated, the page subtracts any non-refundable amount, cancellation fee, and administrative percentage to show the net refund.
The page is intended to explain how a stated refund clause works, not to decide whether a refund is legally required in a specific jurisdiction. Consumer-protection laws, insurance rules, lease rules, and the exact contract language can all change what amount is actually owed.
Prorated means divided proportionally. A prorated refund returns the portion of a fee that corresponds to the unused service period. If you paid for 12 months but only used 8, you get a refund for the remaining 4 months.
The daily rate is the total fee divided by the total number of days in the service period. For a $1,200 annual subscription, the daily rate is $1,200 / 365 = $3.29 per day.
It depends on the jurisdiction and service type. Many states require prorated refunds for gym memberships, insurance premiums, and residential leases. Always check your local consumer protection laws.
Setup fees, activation charges, and administrative fees are often non-refundable even when the service is prorated. These should be clearly disclosed in the contract before purchase.
Divide the monthly fee by the number of days in that month, then multiply by the number of unused days. For a $30 subscription cancelled on day 20 of a 30-day month: ($30/30) × 10 = $10 refund.
Yes. Divide the annual fee by 365 (or 366 for leap years) to get the daily rate, then multiply by the number of unused days. This is common for software, insurance, and membership cancellations.