Prorations: The 360/365 Method, Settled
Proration is the most feared calculation on the exam, and the fear is misplaced: the arithmetic is one division and one multiplication. What actually costs points is the setup — which calendar (360-day 'banker's year' or 365-day actual), how many days, and who owes whom.
The calculator below does both conventions side by side, because the question always tells you which one to use — and the distractor is usually the other one.
The formula
Daily rate = Annual amount ÷ 360 (or 365) · Share = Daily rate × Days owed
- 360-day method
- the 'banker's year': twelve 30-day months
- 365-day method
- actual calendar days
- Days owed
- days of the year the paying party is responsible for — read whether the day of closing belongs to seller or buyer
Try it live
Every intermediate step is shown — the goal is that on exam day you can run the same chain on paper.
Proration calculator — both conventions, side by side
360-day method
- Daily rate$3,600 ÷ 360
- $10
- Seller's days2 months × 30 + 15
- 75
- Seller's share
- $750
365-day method
- Daily rate$3,600 ÷ 365
- $9.86
- Seller's daysactual days through March 15
- 74
- Seller's share
- $729.86
For taxes paid in arrears, the seller's share is a debit to the seller and a credit to the buyer. Non-leap-year calendar; the exam states which convention to use — practice reading for it.
The method, worked in exam style
Annual property taxes of $3,600 are paid in arrears. The sale closes on March 15; the seller is responsible through the day of closing. Using the 360-day method, what does the seller owe the buyer?
- Daily rate: 3,600 ÷ 360 = $10.00 per day.
- Seller's days (30-day months): January 30 + February 30 + March 15 = 75 days.
- Seller's share: 75 × 10.00 = $750 — debit seller, credit buyer, because the buyer will pay the full year's bill later.
Answer: $750 — debit the seller, credit the buyer
The classic trap
Three standard distractors: using 365 days when the question says 360 (or vice versa), counting the day of closing to the wrong party, and flipping the debit/credit direction. Taxes paid in arrears mean the seller used services they haven't paid for — so the seller is debited.
Practice problems
Work each on paper first, then open the solution. If your setup differs from the solution's first line, that — not arithmetic — is what to fix.
1. Annual taxes are $2,920, paid in arrears. Closing is April 10, seller responsible through the day of closing, 365-day method. What is the seller's debit?
Show the solution
- Daily rate: 2,920 ÷ 365 = $8.00 per day.
- Seller's days: 31 (Jan) + 28 (Feb) + 31 (Mar) + 10 (Apr) = 100 days.
- Share: 100 × 8.00 = 800.
Answer: $800 debit to the seller
2. A tenant paid $1,800 rent for the month in advance. The building sells and closes on the 20th of a 30-day month; the buyer owns the day of closing. What does the buyer receive at closing?
Show the solution
- Daily rent: 1,800 ÷ 30 = $60 per day.
- Buyer's days including the closing day: 30 − 20 + 1 = 11 days.
- Credit buyer: 11 × 60 = 660 (the seller collected rent for days the buyer owns).
Answer: $660 credit to the buyer
3. Using the 360-day method, what is the daily rate on a $5,400 annual insurance premium, and what do 45 days cost?
Show the solution
- Daily rate: 5,400 ÷ 360 = $15.00.
- 45 days: 45 × 15.00 = 675.
Answer: $15.00 per day; $675
Math is one domain — the diagnostic measures all of them
The free 24-question adaptive diagnostic finds the difficulty level where your setup breaks down — in math and every other blueprint domain — and reports a Readiness Score with a stated confidence range.
Keep going: Mill rate & property tax · Real Estate Math on the exam · Florida's own proration rules
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