A mid-month hire or a part-month leave needs a prorated salary — the full amount scaled by the fraction of the period actually worked. Multiply by days worked over total days, then round to cents.
The example
Hired on the 16th of a 30-day month.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Monthly salary | 5000 |
| 3 | Days worked / 30 | 15 → $2,500 |
The formula
The formula:
How it works
How it works:
- Count the days actually worked in the period (calendar days or working days — pick one and be consistent).
- Divide by the total days in the pay period to get the worked fraction.
- Multiply the full-period salary by that fraction.
- Wrap in
ROUND(…, 2)so the result is an exact dollars-and-cents figure.
Calendar days vs working days: some employers prorate by calendar days (the formula above), others by scheduled working days — use NETWORKDAYS for the worked and total counts instead. Both are valid; just apply the same basis to numerator and denominator.
Try it: interactive demo
Salary, days worked, days in period.
Variations
By working days
Use NETWORKDAYS:
Annual to the day
Daily rate:
Hourly equivalent
From hours:
Pitfalls & errors
Same basis both sides. Calendar days on top needs calendar days on the bottom — don’t mix with working days.
Round once. Round the final figure, not the fraction, to avoid drift.
Check period length. Months vary (28–31 days); use the actual days in that month.
Practice workbook
Frequently asked questions
How do I prorate a salary in Excel?
Should I use calendar days or working days?
How do I prorate from an annual salary?
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