Vendor Settlement Adjustment Calculator
Calculate the pro-rata adjustment for prepaid council rates or strata levies to be reimbursed to the vendor at settlement.
Your results
Calculation breakdown
- Adjustment
- annual amount × (days remaining after settlement ÷ total days in period)
Worked example
A $2,400 annual rates bill with 120 days remaining after settlement in a 365-day year results in an adjustment of about $789 payable to the vendor.
Assumptions
- Assumes the vendor has already paid the full period upfront and is due a proportional reimbursement.
- Actual adjustment calculations at settlement may follow slightly different state-specific conventions.
How this calculator works
When a vendor has prepaid council rates or strata levies covering a period after settlement, the buyer typically reimburses them for the unused portion. This calculator pro-rates the prepaid amount across the days remaining after settlement to estimate the adjustment.
Frequently asked questions
Who calculates this at settlement?
Your conveyancer or solicitor calculates the exact adjustment using settlement statements; this tool gives an estimate to sense-check that figure.
Does this apply to water rates too?
Yes, similar adjustments can apply to water rates and other prepaid charges the vendor has already paid for a future period.
What if the vendor owes money back to the buyer?
If rates are unpaid or overdue at settlement, the adjustment can run the other way, reducing the amount the buyer pays the vendor.
Results are estimates only and are not financial, tax, legal or credit advice.