Prorated refund calculator: what you're owed when you cancel early

A prorated refund is the part of what you paid that covers the time you won't use: amount paid x unused days / total days in the period. Enter what you paid, the plan dates and the day the service ends, and the calculator gives the refund three ways, plus the text to send the company.

How to use the prorated refund calculator

Enter the amount you paid for the period, the date that period started and the date it would renew. Then enter the date your service ends. If you cancel today, press Today. Leave the method on "By day" unless your terms say the company works in whole months.

Two optional boxes cover the usual deductions. Put a one-off setup or joining fee in "Non-refundable part" if your terms say it isn't refunded. Put any early cancellation fee from your terms in "Cancellation fee." The result, the comparison table and the request text all update as you type.

How a prorated refund is calculated

There are three common ways a company works out the refund on a plan you stop early. The calculator runs all three, so you can see which one your terms describe and what the difference is worth.

1. By day (exact proration)

Refund = (paid - non-refundable part) x unused days / total days - cancellation fee
Total days  = days from the start date to the renewal date
Unused days = days from the cancellation date to the renewal date

This is the fairest version and the easiest to defend, because it charges you only for the days you had the service.

2. By month, where a started month counts as used

Refund = (paid - non-refundable part) x unused whole months / total months - cancellation fee

Many annual plans refund only whole months that haven't started. Cancel on day 2 of a billing month and that month is gone. This method only works when the period runs whole months, for example January 15 to January 15.

3. Used months charged at the monthly price

Refund = (paid - non-refundable part) - months used x monthly price - cancellation fee

Some companies give an annual discount and take it back if you leave early: they re-price the months you used at the full monthly rate. This can wipe out most of the refund, so the calculator flags the gap. Only accept this method if your terms actually say it.

What the rules say

In the US there is no single federal rule that sets how a subscription refund is prorated. Your contract terms and your state's laws decide it, so read the cancellation section of your terms first. There are specific protections in some cases. The FTC's Cooling-Off Rule lets you cancel certain sales made at your home, or at a seller's temporary location, until midnight of the third business day, and the seller then has 10 days to refund you (FTC). If a company keeps charging after you cancel, the FTC's advice is to dispute the charge with your card company (FTC).

In the UK, if you cancel a service in the 14-day cancellation period after asking it to start, you pay an amount "in proportion to what has been supplied," worked out on the total price (Consumer Contracts Regulations 2013, regulation 36). That is the by-day method.

This page explains how the numbers work. It isn't legal advice, and the terms you agreed to come first.

Worked example: cancelling an annual plan in October

This is an example plan. Use the dates and price on your own receipt.

Annual plan: $240, January 15, 2026 to January 15, 2027 = 365 days
Service ends: October 4, 2026
Days used:    January 15 to October 4 = 262 days
Unused days:  365 - 262 = 103 days

By day:       $240 x 103 / 365 = $67.73
By month:     9 months have started (the last on September 15)
              $240 x 3 / 12 = $60.00
Monthly rate: monthly price $25, so 9 x $25 = $225 used
              $240 - $225 = $15.00

With a $30 cancellation fee, by day: $67.73 - $30 = $37.73

Same plan, same date, and the refund runs from $15 to $67.73 depending on the method. That gap is why it pays to check which one your terms use before you accept the first number you're offered.

What a fair refund looks like, and what to do next

If the company's figure matches the method in your terms, you're done. If it's lower, ask them to show the calculation and point to the clause it relies on. Most disputes come down to one of three things: a method the terms don't mention, a fee you never agreed to, or a cancellation date set later than the day you asked.

• Send your request in writing, with the dates and the figure from the calculator. Keep a copy.
• Give a clear deadline, such as 14 days, for the refund.
• If they don't reply or refuse without a reason, escalate with a formal complaint. Our guide to writing a complaint letter that gets a reply has a template.
• If you paid by card and the company won't refund or keeps charging, read chargeback vs Section 75 before you contact your bank.

For gyms, which often use long notice periods and fees, see how to cancel a gym membership and get the charges back. If you're on the other side and a client owes you money, the late payment interest calculator works out what you can add.

Questions people ask about prorated refunds

How do you calculate a prorated refund?

Divide what you paid by the number of days in the billing period to get the cost per day, then multiply by the days you won't use. For a $240 year cancelled with 103 days left, that is $240 x 103 / 365 = $67.73. Take off any non-refundable fee or cancellation fee your terms list.

What does prorated refund mean?

A prorated refund gives back the share of a payment that covers time or service you won't receive. If you paid for 12 months and stop after 9, a prorated refund returns the money for the last 3. Companies prorate by day or by whole month, and the method in your terms decides which.

Do companies have to give a prorated refund?

Not always. In the US, your contract terms and state law decide whether you get one, so check the cancellation section first. Some situations have their own rules, such as the FTC Cooling-Off Rule for certain sales made at home. In the UK, cancelling a service within the 14-day cancellation period means you pay only in proportion to what was supplied.

How do I calculate a prorated refund by month?

Count the whole months that have not started yet, divide by the months in the period, and multiply by what you paid. On a $240 annual plan cancelled after 9 months have started, the refund is $240 x 3 / 12 = $60. Under this method a month you used for even one day is treated as used.

Why is my refund lower than the calculator shows?

The company may be using a different method, such as charging the months you used at the full monthly price, or adding a fee. Ask them to show the calculation and name the clause in your terms that allows it. If the method or fee isn't in your terms, ask for the difference back in writing.