Insurance Premium Cancellation Calculator
| Pro Rata | Short Rate (90% Pro Rata) | |
|---|---|---|
| Unearned Factor | 0.000 | 0.000 |
| Earned Factor | 0.000 | 0.000 |
| Unearned Premium | $0.00 | $0.00 |
| Earned Premium | $0.00 | $0.00 |
The Pro Rate Wheel Calculator, also known as the Insurance Premium Cancellation Calculator, is a practical tool used in the insurance industry to compute how much premium is earned and unearned when a policy is cancelled before its full term ends.
Whether you’re an insurance agent, broker, or policyholder, this calculator helps determine how much refund (if any) is due upon cancellation and whether the cancellation follows a Pro Rata (full refund) or Short Rate (with penalty) method.
This tool streamlines the calculation process and helps ensure fairness, transparency, and compliance with policy terms.
Accurate Premium Calculations: Calculates earned and unearned premiums based on specific policy and cancellation dates.
Supports Pro Rata & Short Rate: Provides both Pro Rata (100% refund of unused portion) and Short Rate (90% refund) values side-by-side for comparison.
Day Count Breakdown : Displays total term days, days used, and days remaining.
Flexible Input Options: Enter policy start and cancellation date, along with an optional premium amount.
Copy and Reset Functionality: Easily copy calculated results or reset the form for a new policy.
Clear Visual Layout: Organized display of calculations: unearned factor, earned factor, unearned premium, and earned premium
Fast & Time-Saving: Eliminates manual math and reduces risk of errors.
Regulatory Compliance: Ensures insurers comply with state insurance laws regarding refunds.
Customer Clarity :Helps policyholders understand how much premium is refundable.
Professional Tool for Agents: Essential for quoting cancellations, endorsements, and refunds during mid-term changes.
Versatile for All Term Lengths: Works for monthly, yearly, or multi-year insurance policies.
🔹 Mid-Term Policy Cancellation: When a customer decides to cancel their policy before its expiry.
🔹 Insurance Refund Estimation: To estimate refunds on unused premiums.
🔹 Policy Adjustments: Used when switching carriers or making changes to coverage dates.
🔹 Agent & Broker Tools: Integrated into quoting software or used for training.
🔹 Claim Settlements: Helpful in scenarios where policies are cancelled due to claim settlements or total losses.Insurance Agents & Brokers
Policyholders & Customers
Insurance Underwriters
Actuarial Analysts
Insurance Software Developers
Financial Advisors
Enter Policy Start Date
The official start date of the insurance policy.
Enter Cancellation Date
The date on which the policyholder requests cancellation.
Specify Policy Term
Duration of the policy in months (commonly 6, 12, 24, or 36 months).
Enter Premium Amount (Optional)
The total paid premium for the term (helps calculate dollar values).
Hit ‘Calculate’
The calculator instantly returns:
Days Used
Total Days in Term
Pro Rata and Short Rate Factors
Earned and Unearned Premiums
Time-Based Day Calculations
Computes the exact number of days from policy start to cancellation date, including leap years.
Dual Methodology Support
Side-by-side display of:
Pro Rata (Exact refund)
Short Rate (Refund minus penalty)
Decimal-Based Earned/Unearned Factors
Shows precise ratios (e.g., 0.052 earned) for integration into financial reports.
Auto-Updating Results
Any change to the inputs immediately refreshes the results (in dynamic tools).
Reset Functionality
Clear all inputs and results instantly to start fresh.
Copy-to-Clipboard
Quickly export results for documentation or emails.
It's a tool that calculates earned and unearned insurance premiums when a policy is canceled before the end of its term.
Insurance agents, brokers, policyholders, underwriters, claims adjusters, and developers in the insurance sector.
You need the policy start date, cancellation date, policy term, and optionally the premium amount.
No, but entering the premium will show the exact dollar value of earned and unearned portions.
Yes, it works for policies of any length—short-term or multi-year.
The portion of the premium that has been used or "earned" by the insurer based on coverage provided up to the cancellation date.
The remaining portion of the premium for the unused days, which may be refunded.
It may show an earned factor of 0, depending on your system rules.
Yes, refund methods are governed by local/state insurance laws and policy contracts.
The UpStore platform offers mid-sized companies a full range of integrated business financial management features.