How to Calculate Average Salary
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Once in a while, everyone likes to know how much they're averaging in their pay. Whether it has to do with an application for something like a loan, or just to more accurately prepare the family budget, an average on regular income is always useful. Determining the average for a salary can be remarkably simple, employing little more than a grade-school mathematical principle known as mean value calculation.
Calculate the Mean
Gather your pay stubs, or other receipts of payment, spanning the desired length of averaging, such as a month or year.
Add together the values on the pay stubs for payment rendered on a calculator.
Divide the sum by the number of payments in the period. The number you reach is the average, or mean, of all payments received.
- While this process can be done mentally, a calculator provides accuracy, and when dealing with larger numbers, is considerably easier.
- If this calculation is being done for any official capacity, write down the result. Don't rely on your memory, as it may be incorrect.
- Determining the mean is a tool of estimation, and not an accurate measure for each pay period's individual income. Use caution when using average estimates to plan budgets.