Texas real estate exam proration calculator, with 360 vs 365 days and credit direction built in.
Calculate seller days, buyer days, daily rate, and the closing statement credit for unpaid taxes, prepaid expenses, and rent collected in advance.
A proration problem starts with the daily rate: amount divided by the number of days. Then multiply by the buyer's or seller's days. The exam trap is not the arithmetic. The trap is deciding whether the item is unpaid, prepaid, or already collected.
Find the daily rate for the annual or monthly period, then multiply by the days assigned to buyer or seller.
Texas property taxes are commonly handled as an in-arrears item in exam-style questions.
The seller paid for time the buyer will own, so the buyer reimburses the seller.
The seller collected rent for days the buyer will own after closing.
The Texas exam tests both the 360-day banker's year and the 365-day actual-calendar method. The question stem tells you which one to use, so read it before you divide.
The question states who owns the day of closing. That one day changes the seller and buyer day counts, so confirm it before counting.
Choose the timing rule before you calculate.
The timing decides who receives the credit. This is where most wrong answers start.
The item has not been paid yet. The seller used the property for the seller-owned days, so the buyer receives a credit.
This mode uses actual calendar days and a 365-day year. If the question says 360-day year or banker's year, switch methods.
The seller owns the day of closing in this setup. That adds one day to the seller's count.
You are dividing the annual amount by the annual day count. Switch to monthly only when the stem gives a monthly amount.
Five proration traps to check before you trust the answer.
- Day method trap: the Texas exam uses both 360-day and 365-day methods, so use the one the stem names before you divide.
- Closing-day ownership trap: the question states who owns closing day, so confirm it before counting seller and buyer days.
- Direction trap: unpaid items usually credit the buyer; prepaid expenses usually credit the seller.
- Base amount trap: annual, quarterly, and monthly items need the matching period before you divide.
- Already-collected trap: rent collected in advance is not the same as an unpaid tax bill.
Email the cheat sheet and this calculation.
Get the formula, trap reminders, and your current breakdown in one printable study note.
Try five proration traps without the calculator.
Annual property taxes are $4,380. Closing is July 15. The seller owns the day of closing. Taxes are unpaid. What is the seller credit to the buyer?
Who gets the proration credit?
Most students can divide by 365. The harder part is deciding which side of the closing statement gets the benefit.
Is the item unpaid or paid in arrears?
The seller usually owes the buyer for the seller-owned days. This is the classic unpaid property tax setup.
Was the item already paid by the seller?
The buyer usually reimburses the seller for the buyer-owned days, because the seller paid beyond closing.
Did the seller collect rent in advance?
The seller usually credits the buyer for the buyer-owned days, because the buyer is entitled to rent after closing.
Does the problem specify a day-count method?
The Texas exam uses both the 365-day actual-calendar method and the 360-day banker's year with 30-day months. The stem tells you which one to use, so read it before you divide.
Does the problem say who owns closing day?
The question states who owns the day of closing. If the seller owns it, include closing day in the seller count. If the buyer owns it, stop the seller count the day before closing.
What this calculator is built to answer
Proration splits an annual or monthly item between buyer and seller at closing. This calculator shows the daily rate, the number of days assigned to each side, and the credit direction so you can see the full closing-statement setup.
Why proration feels harder than the formula
The formula is simple. The exam makes it harder by changing the timing rule, the day-count method, and who owns closing day. If you label those three facts first, the calculation is usually straightforward.
| Item type | Typical credit direction | Exam note |
|---|---|---|
| Unpaid property taxes | Seller credit to buyer | Seller owes for seller-owned days before closing. |
| Prepaid expense paid by seller | Buyer debit and seller credit | Buyer reimburses seller for buyer-owned days. |
| Rent collected in advance by seller | Seller debit and buyer credit | Buyer owns the right to rent after closing. |
| 365-day method | Actual calendar count | Count the real calendar days assigned to each party. |
| 360-day banker's year | 30-day month count | Use 30 days per month when the question says so. |
Four proration patterns to know cold.
These examples cover the setups that cause most misses: unpaid taxes, prepaid expenses, rent collected ahead, and closing-day ownership.
$4,380 annual taxes, July 15 closing, seller owns closing day
Taxes in arrears usually create a seller credit to the buyer.
$1,200 annual dues already paid, April 30 closing, seller owns closing day
Prepaid items usually reimburse the seller for the buyer's days.
$2,400 monthly rent collected, 360-day method, closing on the 10th
The seller collected rent for time the buyer will own.
$3,650 annual item, June 1 closing, buyer owns closing day
If the buyer owns closing day, the seller count stops the day before closing.
The proration mistakes that turn easy math into a wrong answer.
Proration rewards a slow setup. These are the checkpoints to run before trusting your calculator.
Calculating the right number for the wrong side
A perfect daily-rate calculation still loses the point if you credit the wrong party. Decide arrears, prepaid, or rent collected ahead before multiplying.
Using 365 when the question says 360
The exam may specify actual days, a 365-day year, or a 360-day banker's year. The method changes the daily rate and the day count.
Adding one day to the wrong owner
If the seller owns closing day, include that day in seller days. If the buyer owns it, the seller count stops the day before.
Forgetting Texas taxes are paid later
Property tax questions often use the in-arrears pattern. The seller used the property before closing, so the buyer receives the credit for that unpaid share.
Rounding too early
Keep cents until the final answer unless the question tells you otherwise. Early rounding can move you into the wrong answer choice.
Turn every proration question into three decisions.
Before you calculate, name the payment timing, name the day-count method, and name who owns closing day. That order prevents most proration misses.
Identify the item: unpaid tax, prepaid expense, rent collected ahead, HOA dues, or another annual charge.
Choose the day method the question gives: actual days, 365-day year, or 360-day banker's year.
Count seller days and buyer days based on who owns the day of closing.
Multiply the daily rate by the correct side's days, then assign the credit.
What to study next if proration is on your weak list.
Proration sits inside the bigger closing-statement math family. Pair it with property tax, title, and recording costs, formulas, and retake planning if math has been costing you points.
How do you calculate proration on the Texas real estate exam?+
Divide the amount being prorated by the day-count method given in the question, then multiply the daily rate by the number of days assigned to the buyer or seller. After that, decide whether the result is a buyer credit, seller credit, buyer debit, or seller debit.
Does Texas use 365 days or 360 days for proration?+
The Texas exam uses both. Some questions use the 365-day actual-calendar method, and others use the 360-day banker's year with 30-day months. The question stem tells you which method to use, so read it before you divide.
Who gets the credit for unpaid property taxes at closing?+
In the common in-arrears tax setup, the seller credits the buyer for the seller-owned portion because the buyer will later pay the tax bill that includes time the seller owned the property.
Who owns the day of closing in a proration problem?+
The question tells you. If the seller owns the day of closing, include it in the seller count. If the buyer owns closing day, start buyer days on the closing date and stop seller days the day before.
Is this proration calculator for live closing statements?+
No. It is built for Texas real estate exam preparation. Real closings can use contract terms, title-company conventions, local practices, and transaction-specific adjustments.
Annual property taxes are $4,380. Closing is July 15. Taxes are unpaid, and the seller owns the day of closing. What is the seller credit?
Daily rate: $4,380 / 365 = $12. Seller days through July 15: 196. Seller credit to buyer: 196 x $12 = $2,352.