A tool used for determining the portion of a recurring charge applicable to a specific, often partial, term. For example, if a monthly subscription service costs $30 and a user begins service on the 15th of the month, the tool would calculate the amount due for the remaining half of the month, resulting in a bill of $15.
This type of calculation ensures fair billing practices by aligning charges with actual service usage. It benefits both consumers and businesses by preventing overcharging for incomplete service periods and promoting transparency in billing procedures. Historically, these calculations were done manually, but advancements in technology have automated the process through online tools and software. This automation simplifies financial management and minimizes potential billing disputes.