Calculating Approximate Pay Rates Daily-Weekly-BiMonthly-Monthly-Yearly

Let's look at a way to get an approximate comparison of pay rates when they are listed differently. There are a few assumptions that will be part of this process. These assumptions are: there are 365 days in the year, 12 months in the year, 4 weeks in a typical month, 52 weeks in the year, the work week is a 40 hour week.

Now imagine that you are making $10.00 per hour, this would be $80.00 per day based on an 8 hour day, or $400.00 per week for a 40 hour week, or $800.00 on a Bi-Weekly pay period, $1600 per month based on 4 weeks in the month, or about $20,800 per year. If this is placed in a spreadsheet we may have to make some adjustments.

In column A you would put at the top: Per Hour (Cell A1), then under this you would put 10 and format the cell as currency. then at the top in cell B1 you would put per Day and in B2 you would put the formula (=A2*8) which would then automatically calculate the pay for the day, At the top in C1 you would put "Per Week" and in C2 you would put the formula (=B2*5); at the top in cell D1 you would put Bi-Weekly and in D2 you would put the formula (=c2*2); in cell E1 you would put the title "Per-Month" and then in cell E2 you would put the formula (=D2*2) (Note: In the graphic a different formula was used which was (=C2*52/12) and the per year heading in F1 with the formula of (=C2*52) in cell F2.

Now you would have to decide how much to put in the cells A3, A4, A5, A6 etc. In the graphic the jump is generally $1.00 or $2.00 per jump and you may also want to have amounts lower than $10.00 per hour. The formulas in all the remaining cells can be copied into those cells and if copied with "relatively" to their position, then all the calculations will be made automatically.

If one job posts a bi-weekly pay rate and another job posts a yearly pay rate, then you can use the chart or a spreadsheet to get the proper comparison between these tow methods of posting pay rates. This is only an approximation and many factors can affect these calculations. For example if a company gives an automatic bonus after 3 months, 6 months etc. this will affect the overall yearly rate. Some companies offer a sign on bonus, some offer a commission based on productivity, sales, etc. Some companies offer rapid promotions which can quickly increase the overall pay rate. It can also be difficult to calculate the value of benefits from position to position. Suppose one position has extensive benefits, then this could possibly be the better job overall. Even benefits like "tuition assistance" can be worth hundreds and even thousands of dollars per year. The number of paid vacation days also greatly varies from company to company.

It is hoped that this type of chart will be of assistance to many people searching for the best possible job out there.