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Prorated Salary Calculator
Prorate salary for a mid-month start or exit by calendar days, working days, or the 2080-hour/260-day method. Worked examples, FLSA rules, UK/India notes.
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Prorated salary calculator
Work out pay for a partial month when someone starts or leaves mid-month. Enter the annual salary and the first and last day employed in that month (both in the same month). The three common methods give different answers, so pick one and write it into policy.
New hire: first day = start date, last day = end of month. Leaver: first day = 1st of the month, last day = final day of employment.
- Full monthly salary
- $6,000.00
- Calendar days (18 of 31)
- $3,483.87
- Working days (13 of 22)
- $3,545.45
- Annual ÷ 260 x 13 working days
- $3,600.00
Working days count Monday to Friday and ignore public holidays. Daily rate on the 260-day method: $276.92.
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What you get
- A free on-page calculator that compares all three proration methods for any start or exit date
- Formulas for the three common proration methods: calendar days, working days, and 2080-hour / 260-day
- A worked mid-month start and a worked mid-month exit showing how each method gives a different amount
- The FLSA salary-basis rule that allows proration in the first and last week (29 CFR 541.602(b)(6))
- A policy clause you can paste into your payroll policy to fix one method for everyone
- UK and India notes and a blank calculator table
Template preview
A preview of the structure. Download the PDF or CSV for the complete, ready-to-use version.
Inputs
- Annual salary— e.g. $78,000
- Pay frequency— Monthly, semi-monthly, biweekly, weekly
- Period salary— Annual / 12 monthly, / 24 semi-monthly, / 26 biweekly, / 52 weekly
- Pay period being prorated— e.g. September 1-30, 2026
The three methods
| Method | Formula | Effect |
|---|---|---|
| Calendar days | Period salary x (calendar days employed / calendar days in period) | Daily value changes month to month: 1/28 of monthly pay in February, 1/31 in 31-day months. Weekends count |
| Working days in the period | Period salary x (working days employed / working days in period) | Only weekdays count. Months with 20 working days pay more per day than months with 23 |
| 2080-hour / 260-day (annual rate) | (Annual salary / 260) x working days employed, or (annual / 2080) x hours employed | Same daily rate all year. Easiest to explain; total can differ slightly from the monthly salary over a full month |
| Variant: 365-day | (Annual salary / 365) x calendar days employed | Same calendar-day rate all year; common in the UK when the contract is silent |
Worked example 1: mid-month start
Salary $78,000 a year, paid monthly ($6,500.00). Start date Monday, September 14, 2026. September 2026 has 30 calendar days and 22 weekdays; employed September 14-30 = 17 calendar days and 13 working days (Labor Day falls before the start date). Daily rate at 260 days: $78,000 / 260 = $300.00; hourly at 2,080: $37.50.
| Method | Calculation | Prorated pay |
|---|---|---|
| Calendar days | $6,500.00 x 17 / 30 | $3,683.33 |
| Working days in month | $6,500.00 x 13 / 22 | $3,840.91 |
| 260-day | $300.00 x 13 days | $3,900.00 |
| 2080-hour | $37.50 x 104 hours (13 x 8) | $3,900.00 |
Worked example 2: mid-month exit
Same salary. Last day worked Friday, October 9, 2026. October 2026 has 31 calendar days and 22 weekdays; employed October 1-9 = 9 calendar days and 7 working days.
| Method | Calculation | Prorated pay |
|---|---|---|
| Calendar days | $6,500.00 x 9 / 31 | $1,887.10 |
| Working days in month | $6,500.00 x 7 / 22 | $2,068.18 |
| 260-day | $300.00 x 7 days | $2,100.00 |
| 2080-hour | $37.50 x 56 hours (7 x 8) | $2,100.00 |
Arithmetic check. Start: 6,500 x 17 = 110,500 / 30 = 3,683.33; 6,500 x 13 = 84,500 / 22 = 3,840.91; 300 x 13 = 3,900; 78,000 x 17 = 1,326,000 / 365 = 3,632.88. Exit: 6,500 x 9 = 58,500 / 31 = 1,887.10; 6,500 x 7 = 45,500 / 22 = 2,068.18; 300 x 7 = 2,100; 78,000 x 9 = 702,000 / 365 = 1,923.29. Across the two examples the gap between the lowest and highest method is $267.12 at the start and $212.90 at the exit, which is why the method belongs in writing.
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How to use this template
- 1
Check the policy or contract
Your offer letter, employment contract, or payroll policy may already name a method. If it does, use that method. If it does not, pick one and apply it consistently to every employee.
- 2
Enter salary and dates
Enter annual salary, pay frequency, the first or last day worked, and the pay period being prorated.
- 3
Count the days
Count calendar days and working days in the full period and the days actually employed. Paid holidays inside the employment dates count as working days.
- 4
Apply the formula
Multiply the period salary by days employed divided by days in the period, or multiply the daily or hourly rate by days or hours employed. Round to the cent at the final step only.
- 5
Document the calculation
Keep the worksheet with the payroll record for that run, and show the prorated amount on the pay stub so the employee can follow it.
Frequently asked questions
How do you calculate prorated salary?
Multiply the period salary by the share of the period the employee was employed. By calendar days: monthly salary x days employed / days in the month. By working days: monthly salary x working days employed / working days in the month. By annual rate: annual salary / 260 x working days employed. A $78,000 employee starting September 14, 2026 gets $3,683.33, $3,840.91, or $3,900.00 depending on the method.
Which proration method is most accurate?
None is more correct legally; the right one is the method in your contract or policy, applied consistently. The 260-day method gives the same daily rate all year and is easiest to explain. Calendar-day proration matches how salary accrues under UK law when the contract is silent. Working-day proration varies by month.
Can an employer prorate an exempt employee's salary?
Yes, in the first and last week of employment. 29 CFR 541.602(b)(6) lets employers pay a proportionate part of the full salary for time actually worked in those weeks. In other weeks, an exempt employee must get the full salary for any week with any work, except for the specific full-day and FMLA deductions the regulation allows.
Do weekends count when prorating salary?
Under the calendar-day method, yes: every day from the start date to the end of the period counts. Under the working-day and 260-day methods, only weekdays count, including paid holidays that fall within the employment dates. The difference can be several hundred dollars on a mid-month start.
How is salary prorated for a mid-month resignation?
Use the same method as for new hires, counting from the first day of the period to the last day worked. For a $6,500 monthly salary and a last day of October 9, 2026, pay is $1,887.10 by calendar days, $2,068.18 by working days, or $2,100.00 at $300 a day. Add any PTO payout your state or policy requires.
How is salary calculated for a partial month in India?
Most employers divide the monthly gross by the calendar days in the month, or by a fixed 30 or 26 days, and multiply by days payable including weekly offs and holidays within the employment dates. The divisor should be stated in the appointment letter or HR policy, and PF and ESI apply to the prorated wages paid.