How to Calculate Salaried Income

How to Calculate Salaried Income

Example 1: Borrower is paid a salary of $2,500 every two weeks.
  1. Determine the pay period type (i.e. weekly, bi-weekly, semi-monthly, monthly, annual)
  2. Determine how many pay periods per year, using the pay period formula matrix.
  3. Use the correct formula to calculate the monthly income.

    In this case, the pay period would be bi-weekly, and the income would be $2,500 x 26 / 12 = $5,415.67 per month.
Example 2: Borrower is paid $7,650 per pay period, and the paystub shows a total of 86.67 hours worked.
  1. Determine the pay period type (i.e. weekly, bi-weekly, semi-monthly, monthly, annual)
  2. Determine how many pay periods per year, using the pay period formula matrix.
  3. Use the correct formula to calculate the monthly income.

    In this case, the pay period would be semi-monthly, and the income would be $7,650 x 24 / 12 = $15,300 per month.

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