How to Calculate Average Salary
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.
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Instructions
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Calculate the Mean
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1
Gather your pay stubs, or other receipts of payment, spanning the desired length of averaging, such as a month or year.
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2
Add together the values on the pay stubs for payment rendered on a calculator.
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3
Divide the sum by the number of payments in the period. The number you reach is the average, or mean, of all payments received.
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Tips & Warnings
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.
References
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