Personal Finance

Using Excel to Calculate Your Annual Salary With Increases

If you have a recent pay stub, you can use Microsoft Excel to calculate your annual salary, as well as estimate how much a raise will affect your paychecks. Here are the steps to calculate yours.

How to calculate your annual salary

Locate yourgross pay on your pay stub, which is the amount you got paid before any taxes or other deductions come out. If you received any out-of-the-ordinary income during the period, such as a bonus or overtime, deduct this amount.

On a blank Excel spreadsheet, enter this amount in the top right cell (A1). (Note: You don't need to label your cells, as shown in the screenshots, but it may make the process easier and more organized if you do.)

In the cell underneath this (A2), multiply by the appropriate factor, depending on how many times per year you get paid. For example, if you get paid biweekly, you'll multiply by 26. In the cell, write (=A1 * 26), or the appropriate multiple. This will calculate your annual salary.

If you anticipate getting a raise and want to see how it may affect your salary, you can do this fairly easily. Here are two processes, depending on whether your raise is a fixed dollar amount (such as $1,500), or a percentage of your salary (such as 3%).

Calculating salary increases

First, if you expect a fixed amount, enter the amount in cell A3, just below your annual salary. In cell A4, enter (=A2 + A3), which will result in your post-raise salary.

If your raise is a percentage of your salary, you'll need to use an extra line. In cell A3, enter the percentage of your raise in decimal form -- so a 3% raise becomes 0.03. Then, in cell A4, enter (=A2*A3). This will give you the amount of your raise. In cell A5, enter A2+A4 to arrive at your post-raise salary.

Finally, to see how your raise might affect your paychecks, simply divide by the number of paychecks per year in the cell below your salary calculation. To see how much of a difference this could make in your paycheck, subtract your current paycheck amount from the new amount you calculated.

Here's what the process might look like from start to finish:

The $15,978 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. In fact, one MarketWatch reporter argues that if more Americans knew about this, the government would have to shell out an extra $10 billion annually. For example: one easy, 17-minute trick could pay you as much as $15,978 more... each year! Once you learn how to take advantage of all these loopholes, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how you can take advantage of these strategies.

This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors based in theFoolsaurus. Pop on over there to learn more about our Wiki andhow you can be involvedin helping the world invest, better! If you see any issues with this page, please email us atknowledgecenter@fool.com. Thanks -- and Fool on!

The article Using Excel to Calculate Your Annual Salary With Increases originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More