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Prorated Calculator for Insurance | Earned & Unearned Premium
Free prorated calculator for insurance: full-term premium USD, policy days, days used, linear earned vs unearned premium, optional unearned retention %, daily rate, charts, scenario rows—not a carrier refund guarantee.

Prorated Calculator for Insurance

Important: Carrier contracts use earned premium, minimum earned, short-rate tables, state rules, and fees that this page does not know. The widget is a plain pro rata illustration plus an optional “keep % of unearned” knob—not insurance advice, not a quote, and not a substitute for your policy PDF and licensed agent.

Summary: Enter the full-term premium, the policy length in days, and how many days have run (or how many days you want to price). The tool shows earned vs unearned premium on a linear day basis, an optional short-style haircut on the unearned bucket, daily rate, and scenario rows—same transparency style as our other planners.

Prorated calculator for insurance (earned / unearned premium)

Core identity: earned = premium × (days used ÷ policy days), unearned = premium − earned. Optional field models a simple fraction of unearned not returned (fees/retention illustration)—not a filed short-rate schedule.

Formulas (short)
  • Daily rate = premium ÷ policy days.
  • Earned (pro rata by time) = premium × (days used ÷ policy days), capped at premium.
  • Unearned = premium − earned.
  • Modeled refund = unearned × (1 − retention% ÷ 100), where retention% is your editable “not returned” slice of unearned.
Policy & time

For mid-term cancel illustrations, this is usually days from inception to cancellation date (per your own calendar math).

0% = full unearned returned in the model. Use a small positive number to mimic “I only get back part of unearned” conversations—still not your carrier’s exact table.

Earned premium, unearned, and refund model will appear here.

Mid-term endorsements, audits, installment finance charges, and surplus lines fees are out of scope—extend the spreadsheet offline.

By Morgan Lee · Insurance literacy editor

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Insurance prorations: the boring math behind “how much is earned?”

People search for a prorated calculator for insurance when a policy is starting mid-month, ending early, changing vehicles, or when a carrier letter mentions earned premium and a refund that does not match mental arithmetic. This guide separates what linear day-count math can explain from what only a contract and a licensed professional can answer.

What “pro rata” usually means on a timeline

At its simplest, a pro rata split spreads the full-term premium across the policy’s declared length in days (or sometimes months under specific counting rules). Multiply the daily rate by days used to estimate earned premium; what remains is unearned. That mental model is useful for budgeting—even when the legal document adds bells and whistles.

Why your refund may not match the naive unearned number

Carriers may apply minimum earned premium clauses, non-refundable policy fees, installment finance charges, or short-rate cancellation methods that allow the insurer to retain more than a strict linear unearned calculation would suggest. States also regulate personal lines differently from commercial lines. The retention slider on the tool is a blunt teaching aid: it shows sensitivity to “what if I do not get all unearned back?” It is not a filed rating algorithm.

How to use the output without stepping on compliance landmines

Bring the numbers to your agent or broker as questions, not demands. Ask which counting convention applies (inception-to-cancel at 12:01 a.m. local time? inclusive endpoints?). Ask whether fees are part of premium or separately billed. If you are mid-dispute, paperwork beats browser tabs—export your assumptions to a dated memo you can share with counsel.

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