# How to Convert an Annual Salary Into a Monthly Salary

When a prospective employer makes you a job offer with an annual salary, that amount can sound really big. However, you're not going to receive your annual salary as one lump-sum check. Plus, when it comes to setting your budget, it is much more practical to think of your income in monthly earnings instead of yearly income. As a result, you'll want to convert your annual salary into a monthly salary so that you can come up with a feasible budget for your earnings.

How to Convert an Annual Salary Into a Monthly Salary
Image Credit: wutwhanfoto/iStock/GettyImages

Video of the Day

## Converting to Monthly Salary

If your job offer states your salary as an annual amount but you'll be paid monthly, simply divide your annual salary by 12 to calculate your monthly salary. For example, if your annual salary is \$72,000, divide \$72,000 by 12 to find that you'll be paid \$6,000 per month. If instead that new annual salary is \$50,000, you would divide \$50,000 by 12 to find your monthly salary would be \$4,500.

Video of the Day