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Math lesson 250 · Calculations

360-Day Versus 365-Day Proration

A 360-day proration divides the annual amount by 360 and usually treats each month as 30 days. A 365-day proration divides by 365 and counts actual calendar days. Use the basis and closing-day convention stated in the question or contract. PSI does not publish a rule that every Georgia exam proration defaults to one method.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready answer?

A 360-day proration divides the annual amount by 360 and usually treats each month as 30 days. A 365-day proration divides by 365 and counts actual calendar days. Use the basis and closing-day convention stated in the question or contract. PSI does not publish a rule that every Georgia exam proration defaults to one method.
Official syllabus mapping for 360-Day Versus 365-Day Proration
Roadmap post250 of 500
Official syllabus topicXI.A.3 Calculations for Transactions: Real property tax and other prorations
Official PSI areaReal Estate Calculations
Published weight7% of the 100-question national portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Content checked throughAugust 2, 2026

The Rule

PSI publishes a weight for the complete official area, not a guaranteed count for this individual calculation. Follow the stated facts, units, time basis, and rounding instruction.

Formula and variables

Daily proration: Prorated amount = annual amount / stated year basis x responsible days
Variables used in Daily proration
Symbol or termMeaning
Year basis360 days for the banker-year method or 365 days for a non-leap actual-year method
Responsible daysDays allocated to the seller or buyer under the stated closing-day convention
Annual amountThe annual tax, rent, interest, or expense being allocated

Step-by-step method

  1. Underline the stated 360-day, 365-day, or actual-calendar instruction.
  2. Determine who receives closing day under the question's convention.
  3. Count the responsible days using 30-day months for a banker year or actual dates for a calendar year.
  4. Divide the annual amount by the stated basis and multiply by responsible days.
  5. Decide debit and credit direction separately from the arithmetic.

Georgia-specific distinction

Georgia closing documents and the parties' contract control actual proration conventions. A licensed Georgia attorney conducts the closing, but that fact does not create a universal 360-day exam assumption. Follow the explicit problem facts.

Worked examples

Example 1: Compare the two year bases

Scenario. Annual tax is $7,300 and 90 days are allocated to the seller. Compare 360-day and 365-day calculations.

  1. 360-day amount = $7,300 / 360 x 90 = $1,825.
  2. 365-day amount = $7,300 / 365 x 90 = $1,800.

Answer. The 360-day result is $1,825 and the 365-day result is $1,800.

Reasonableness check. With the same annual amount and day count, the smaller 360 denominator produces the larger daily rate.

Example 2: Banker-year day count

Scenario. Using 30-day months and seller owning through April 15, count seller days from January 1.

  1. January through March = 3 x 30 = 90 days.
  2. Add 15 April days.
  3. Seller period = 105 days.

Answer. Use 105 seller days under the stated banker-year convention.

Reasonableness check. Do not substitute the 31-day calendar months when the question specifies 30-day months.

Common exam traps

  • Assuming 360 days when the question says actual days
  • Using actual month lengths inside a 30-day-month calculation
  • Counting closing day for both parties or neither party
  • Getting the dollar amount right but reversing debit and credit direction

Original practice questions with detailed explanations

These original instructional questions map to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Write the setup before opening the explanation.

Question 1

Annual rent is $3,600. What is the 360-day daily rate?

  1. A. $9.86
  2. B. $10.00
  3. C. $30.00
  4. D. $300.00
Show answer and explanation →

Answer: B. $10.00

$3,600 / 360 = $10 per day.

Question 2

Annual tax is $3,650. What is the 365-day daily rate?

  1. A. $9.86
  2. B. $10.00
  3. C. $10.14
  4. D. $365.00
Show answer and explanation →

Answer: B. $10.00

$3,650 / 365 = $10 per day.

Question 3

What controls the proration method in an exam question?

  1. A. The largest answer choice
  2. B. The method and convention stated in the facts
  3. C. A universal Georgia 360-day rule
  4. D. The buyer's preference
Show answer and explanation →

Answer: B. The method and convention stated in the facts

Use the basis, date count, and closing-day convention stated. PSI does not publish one default for every problem.

Mastery tracking

Mark this calculation mastered only when every statement is true.

  • I identify the year basis before finding a daily rate.
  • I count days under the correct month convention.
  • I allocate closing day exactly once.
  • I separate the amount calculation from debit-credit direction.
  • I do not invent a universal Georgia default.

Recommended next lesson

Continue with Calendar-Day Proration Step by Step. Practice actual dates, leap years, and inclusive day counts.

Return to the complete calculation hub, formula sheet, or mixed math drill.

360-Day Versus 365-Day Proration questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is 360-Day Versus 365-Day Proration on the Georgia real estate exam?

It maps to XI.A.3 Calculations for Transactions: Real property tax and other prorations in the official Real Estate Calculations area. PSI assigns 7% of the 100-question national portion to the complete area but does not guarantee a count for this individual formula.

What formula should I use for 360-Day Versus 365-Day Proration?

Prorated amount = annual amount / stated year basis x responsible days

What Georgia-specific point should I remember?

Georgia closing documents and the parties' contract control actual proration conventions. A licensed Georgia attorney conducts the closing, but that fact does not create a universal 360-day exam assumption. Follow the explicit problem facts.

Can I use a calculator on the Georgia real estate exam?

PSI provides an online calculator during the examination. Handheld calculators are prohibited. Write the setup and label the units before entering numbers.