Proration Calculator

How to Use the Proration Calculator

The Proration Calculator is designed to help you calculate the prorated amount for services based on the billing period, service start date, and end date. Follow these steps to use the calculator effectively:

Step 1: Enter the Total Bill Amount

• Locate the field labeled Total Bill Amount.
• Enter the total amount of the bill you wish to prorate. Ensure the amount is a positive number greater than 0.01.

Step 2: Select the Billing Period

• Find the field labeled Billing Period with a drop-down selection.
• Select the appropriate billing period for the service you are calculating:
  • Monthly: Choose this if the bill is for one month.
  • Quarterly: Choose this if the bill covers a three-month period.
  • Annually: Select this option if the bill covers an entire year.

Step 3: Provide the Service Dates

• Locate the field labeled Service Start Date and select the date the service began.
• Find the field labeled Service End Date and choose the date the service concluded.

Step 4: Review the Calculated Results

Once all inputs are provided, the calculator will automatically compute and display the following results:

• Total Days in Billing Period: This shows the total standard days in the selected billing period, adjusted for average day counts like 30.44 for a month.
• Days Used: The calculator will determine the exact number of days the service was used by calculating the difference between the start and end dates.
• Daily Rate: This is the cost of the service per day, calculated based on the total bill amount and the billing period selected.
• Prorated Amount: This gives the exact amount you should pay, accounting for the actual service days used.
• Amount Saved: Indicates the potential savings by calculating the difference between the total bill amount and the prorated amount.
• Percentage of Period Used: This shows the percentage of the billing period that the service was actually used.

By following these steps, you can efficiently utilize the Proration Calculator to understand the appropriate amount you should pay for the actual usage period of the service.