How To Calculate Monthly Income from BiWeekly Paycheck

Almost every budgeting method out there requires that you write down your income and expenses to get started.

Your gross monthly income can be calculated using this equation: ($ PAYCHECK AMOUNT X 26) ÷ 12 = Gross Monthly Income

Here are two common methods recommended across personal finance blogs and I think they both have their benefits.

Budget for Two Monthly Paychecks

One common method is to budget for two monthly paychecks each month. You know that with your semi-monthly paycheck schedule you will be bringing home at least 2 paychecks every single month. Use that amount when writing your budget.

Budget 3 Paycheck Months for 3 Paychecks

Zero based budgeters may feel more at ease just writing down three paychecks in the income column when they receive their extra paycheck. That money can then be allocated out just like any other income.