Solved

How do I do a pro ration calculation in excel

Posted on 2010-11-26
4
1,082 Views
Last Modified: 2012-05-10

How do I do a proration calculation in excel?
I'd like to take inputs from the user -
Amount to prorate
Starting date - date product purchased
end date - date of failure/warranty claim
base warranty period - period where coverage is 100%
prorated warranty period - Period where warranty is prorated.  starts at day one regardless of base period.

Example:
Product is $400
Purchased 12/1/07
Warranty claim 6/1/10
Base Warranty 24months
Prorated period 6 months

$400 is prorated for 30months
0
Comment
Question by:swedishmotors
  • 2
  • 2
4 Comments
 
LVL 80

Accepted Solution

by:
byundt earned 500 total points
ID: 34218239
Assuming 12/1/07 is in cell A1, 6/1/10 is in cell A2, then the warranty benefit might be calculated as:
=400*MAX(0,1-DATEDIF(A1,A2,"m")*(DATE(YEAR(A1),MONTH(A1)+24,DAY(A1))<=A2)/30)

Full benefit for 24 months or less. $80 benefit pro-rated to 0 over the last 6 months. Each successive month gets $13.33 less benefit.

Brad
0
 
LVL 1

Author Comment

by:swedishmotors
ID: 34227613
I get a number error when I try this. Prorated-Warranty-Calc.-.xls
0
 
LVL 80

Expert Comment

by:byundt
ID: 34227699
The formula was using dates in A1 and A2. You put yours in A1 and B1. Try moving the date from B1 to A2.

Brad
0
 
LVL 1

Author Comment

by:swedishmotors
ID: 34230507
Thank you very much for your help.
0

Featured Post

Highfive Gives IT Their Time Back

Highfive is so simple that setting up every meeting room takes just minutes and every employee will be able to start or join a call from any room with ease. Never be called into a meeting just to get it started again. This is how video conferencing should work!

Join & Write a Comment

A2 = A1 That kind of cell reference is relative.  If you copy it from A2 to B2, then B2 will get this: B2 = B1 That's all fine and good, but if you then insert a new row above row 2, you'll find: A3 = A1 B3 = B1 This is intentional. …
Dealing with unintended Excel Active-X resizing quirks (VBA code simulates "self correction") David Miller (dlmille) Intro Not everyone is a fan of Active-X controls in spreadsheets (as opposed to the UserForm approach, the older Form controls …
Viewers will learn the basics of slicers and timelines for both PivotTables and standard Excel tables in Excel 2013.
The viewer will learn how to use the =DISCRINV command to create a discrete random variable, use this command to model a set of probabilities and outcomes in a Monte Carlo simulation, and learn how to find the standard deviation of a set of probabil…

747 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question

Need Help in Real-Time?

Connect with top rated Experts

11 Experts available now in Live!

Get 1:1 Help Now