Definition: A real estate math convention that treats every month as 30 days and the year as 360 days when prorating annual amounts. It is also called the 30-day-month method.
Example
For a $3,600 annual item, the daily amount is $3,600 ÷ 360 = $10; 12 allocated days equal $120.
Keep the distinction clear
Use the method specified in the problem or agreement. The term does not mean every actual Florida closing must use 30-day months; actual-day methods produce different results.
Related terms
Prorate · Arrears · Debit (Closing Statement)
Keep studying
Real Estate Prorations: Who Gets Debited and Credited?
References: California DRE: real estate glossary
Pronunciation (US): STAT-chuh-tor-ee MUNTH METH-ud (capitals show stress)
Pronunciation reference: Merriam-Webster
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