How to Combine Bi-Weekly & Bi-Monthly Pay in Budgeting

Some quick calculations make combining different pay cycle incomes easy.
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When you have income from two different pay cycle sources, creating a budget seems like a tricky process to master. However, you can use some simple calculations to get a good idea of what to expect during the month, which makes budgeting a lot easier. Often, bi-weekly pay involves hourly wages and bi-monthly pay involves set salaries. When combining these two types of pay, you’ll have a slighter higher average for the bi-weekly income – this accounts for the months you receive more than two paychecks. Keep this in mind when planning your budget so you don’t fall short.

Step 1

Gather your recent paystubs. If you earn a set salary, just the last paycheck stub will do. If you earn hourly wages, gather the last two months of paystubs, if available. You’ll need to find the average amount of net income based on your hourly wages, so you’ll want to look at a few paychecks to get an idea.

Step 2

Find your net income from your bi-monthly pay stub. The net amount is the amount you actually bring home, after taxes and other deductions are accounted for. Bi-monthly paychecks are distributed twice per month, usually on the same dates, such as the 1st and 15th. Multiply the net amount by two. The result from this calculation is your monthly take-home income for the bi-monthly pay check.

Step 3

Find your net income from your bi-weekly pay stub. Bi-weekly paychecks are distributed every other week, usually on the same day of the week, such as every other Friday. Multiply your biweekly net income by 2.17. This calculation accounts for the months you receive more than two paychecks. The result equals your average monthly bi-weekly income. If you have varying net income due to hourly wages, multiply your average net income by 2.17.

Step 4

Add your monthly bi-monthly and bi-weekly income results. This equals the combined income to include in your monthly budgeting.

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