Understanding Monthly vs Fortnightly Salary Calculations

If you’ve noticed a difference between your fortnightly pay and the monthly amount shown in your budget, you’re not alone. This happens because of how fortnightly payments are converted into monthly figures.

Billroo uses the following method to make sure your annual income is represented accurately:

1. Multiply your fortnightly pay by 26 (since there are 26 fortnights in a year).

2. Divide that total by 12 (the number of months in a year).

This approach accounts for the fact that some months have three pay periods, not just two.

Let’s say you earn $2,000 fortnightly:

• Annual income: $2,000 × 26 = $52,000

• Monthly estimate: $52,000 ÷ 12 = $4,333.33

At first glance, this may look higher than just doubling your fortnightly pay ($2,000 × 2 = $4,000). The difference is because, over a year, those “extra” pay periods are included in the calculation.

1. Doubling your fortnightly pay: Underestimates your true annual income.

2. Using the 26 ÷ 12 method: Gives a more accurate monthly figure for budgeting.

If something still doesn’t look right, share your fortnightly amount with us and we’ll verify the calculation for you.