What This Insurance Prorate Calculator Does

Feature	Description
Policy Types	Auto, Homeowners, Life, Health, Renters
Calculation Methods	Pro-Rata (fair) or Short Rate (with penalty)
Date Calculations	Start date, end date, cancellation date
Premium Proration	Calculates earned vs unearned premium
Short Rate Penalty	Typical 10% penalty for early cancellation
Admin Fees	Deductible fees from the refund
Payment Tracking	Amount paid vs earned premium
Net Refund / Owed	Shows if refund due or additional payment is needed

Calculation Methods

Method	Formula	When Used
Pro-Rata	Refund = (Unused Days ÷ Total Days) × Premium	Mid-term changes, customer-friendly
Short Rate	Refund = Pro-Rata × (1 – Penalty%)	Early cancellation by insured

Example Calculation

Auto Insurance: $1,200 annual policy, canceled after 180 days

Metric	Pro-Rata	Short Rate (10%)
Days Used / Total	180 / 365	180 / 365
Percentage Used	49.3%	49.3%
Earned Premium	$592	$592
Unearned Premium	$608	$608
Penalty	$0	$61
Admin Fee	$0	$0
Refund Due	$608	$547

How to Use

1. Select Policy Type — Auto, Home, Life, Health, or Renters
2. Choose Calculation Method — Pro-Rata or Short Rate
3. Enter Annual Premium — total yearly premium amount
4. Set Policy Dates — start date and end date
5. Set Cancellation Date — when policy changes/ends
6. Enter Amount Paid — how much you’ve already paid
7. Add Admin Fee — if applicable
8. View Results — refund amount or amount owed

Short Rate Penalty Table

Months Used	Typical Short Rate Penalty
0-1 month	20-25%
1-3 months	15-20%
3-6 months	10-15%
6-9 months	5-10%
9+ months	0-5%

State Regulations Note

State	Short Rate Rules
California	Pro-rata only (no short rate for autos)
New York	Short rate allowed with disclosure
Texas	Pro-rata for early termination
Florida	Short rate allowed with 10% max penalty

Common Scenarios

Scenario	Best Method
Selling a car	Pro-rata refund
Switching insurers	Short rate may apply
Adding a driver	Pro-rata adjustment
Removing a vehicle	Pro-rata refund
Policy cancellation by the insurer	Pro-rata (no penalty)

Keyboard Shortcuts

• Ctrl/Cmd + Enter — Recalculate
• Ctrl/Cmd + R — Reset to defaults