Real Estate Proration Calculator

Prorate property taxes, HOA dues, rent, and other recurring costs between buyer and seller at closing.

Proration Calculator: Property Taxes, HOA, Rent & More

Free proration calculator for real estate closings. Split annual or monthly costs between buyer and seller based on the closing date, day-count convention, and whether the cost is paid in arrears or in advance.

Quick presets

Presets adjust the day-count convention, payment direction, and period for the most common scenarios. You can still tweak every field below.

Cost details

Annual amount ($)

For monthly costs (e.g., rent, HOA dues billed monthly), enter the monthly amount and set the period to that month.

Period start

Period end

Closing date

Convention

Day-count convention

Use 365-day for most U.S. property tax and rent prorations. Use 360-day for statutory/banker conventions still common in some title offices.

Who owns the closing day?

Most contracts assign the closing day to the seller. Check your purchase agreement and state convention.

Payment direction

Property taxes are usually paid in arrears (seller credits buyer). HOA and rent are usually paid in advance (buyer credits seller).

Settlement breakdown

Enter the cost, period, and closing date to see the proration.

How proration works

Identify the period. Property taxes use the calendar or fiscal tax year. HOA dues use the billing cycle. Rent uses the month.
Calculate the per diem. Divide the period total by the number of days in the period.
Count seller days vs. buyer days. Up through the closing day (or day before, per contract) is the seller’s; the rest is the buyer’s.
Apply the direction. Arrears costs (unpaid taxes) → seller credits buyer for the seller’s share. Advance costs (prepaid HOA, collected rent) → buyer credits seller for the buyer’s share.

Complete Real Estate Proration Calculator Guide

This proration calculator helps real estate agents, brokers, transaction coordinators, and title companies split recurring costs between the buyer and the seller at closing. Use it for property tax proration, HOA dues, monthly rent on income properties, and any other annual or monthly cost that needs to be divided based on the closing date.

What proration covers in a real estate closing

The settlement statement at closing reconciles costs that span the change of ownership. Property taxes are the most common — most U.S. jurisdictions bill taxes in arrears, so the seller has not yet paid for the portion of the year they owned the property. HOA dues and condo fees are typically paid in advance for a month or quarter, so the seller has prepaid part of the buyer’s period. Monthly rent on a tenant-occupied property is collected on the first; if closing happens mid-month, the seller has rent that belongs to the buyer.

How to prorate property taxes

Start with the annual tax bill and the tax year (calendar year in most states, fiscal year in some). Divide the annual amount by 365 to get the per-diem tax cost. Count the seller’s days of ownership from the start of the tax year through the closing date. Multiply per-diem by seller days to get the seller’s share — that is the credit from seller to buyer on the settlement statement when taxes are paid in arrears. If taxes were already paid for the year, the buyer credits the seller for the buyer’s share instead.

Day-count conventions: 365 vs. 360

The 365-day actual day count is the standard for most U.S. residential prorations. Each calendar day counts as one day, and February’s 28 or 29 days are counted as actuals. The 360-day banker convention treats every month as 30 days and the year as 360 days. It is still used by some title companies for statutory consistency and by some commercial deals where loan interest is calculated on a 360-day basis. Use this calculator to switch between conventions and verify which one your settlement agent uses.

Who owns the closing day?

The purchase agreement controls. The most common convention in U.S. residential real estate is that the seller owns the closing day — so the seller pays for costs through the closing date and the buyer’s ownership begins on the next calendar day. Some contracts and some state conventions assign the closing day to the buyer. Check the contract first.

Paid in arrears vs. paid in advance

Property taxes are the canonical paid-in-arrears cost: the seller has not yet paid taxes covering their period of ownership, so the seller credits the buyer at closing. HOA dues and rent are the canonical paid-in-advance costs: the seller has already received money covering the buyer’s period of ownership, so the buyer credits the seller at closing. The direction is what determines who gives money to whom — the math for the share is the same.

Real estate proration calculator for transaction coordinators

Transaction coordinators use proration math constantly. Verifying the title company’s numbers, helping agents explain settlement adjustments to clients, and catching errors on closing disclosures all require quick proration calculations. This calculator covers the three most common scenarios (property tax, HOA, rent) with presets, plus a custom mode for any other recurring cost.