How to use the paycheck to annual spending tracker
- List each recurring cost: a name, the amount you pay and how often you pay it. The two starting rows are examples to replace.
- Choose the frequency that matches the bill: every week, every 2 weeks, twice a month, every month, every 2 months, every 3 months, every 6 months or once a year.
- Use Add a cost for more bills, up to 30. Costs with a zero amount are allowed and add nothing.
- Read the total per year, month, week and day, and the table that shows each cost per year with its share of the total. Use Copy, Print or CSV to keep the list.
Formula
Cost per year = amount x charges per year
Charges per year: weekly 52, every 2 weeks 26, twice a month 24, monthly 12, every 2 months 6, quarterly 4, every 6 months 2, yearly 1
Per month = per year / 12; per week = per year / 52; per day = per year / 365
Weekly bills are counted as 52 a year even though a year has slightly more than 52 weeks. Twice a month is 24 and every 2 weeks is 26, so a bill charged every other week costs a little more over a year than a twice a month bill of the same size.
A $15 weekly bill and a $120 yearly bill
A $15 weekly plan costs 15 x 52 = $780 a year. A $120 yearly insurance payment is $120. Together they cost $900 a year, which is $75 a month, $17.31 a week and $2.47 a day.
The weekly plan is 86.7% of the total, so it is the largest cost. Seeing the yearly figure is often the surprise: a $15 charge feels small each week, yet it adds up to $780. The monthly column lets you compare it with the rest of a monthly budget, where the $120 yearly bill only counts as $10 a month.
Why convert everything to the same period
Bills arrive on different schedules, so they are hard to compare. A weekly charge, a monthly charge and an annual renewal each feel different, but a yearly and a monthly figure put them on one line. That is how you can tell whether the quiet annual items matter as much as the visible monthly ones.
The conversion also catches bills that are easy to forget. An annual domain renewal or insurance premium does not appear in most months, yet it takes about the same share of your budget as a monthly charge of one twelfth the size.
Using the total
The monthly figure is the amount to set aside each month so the big bills are covered when they arrive, which is the idea behind a sinking fund. Use the sinking fund calculator if you want a plan for a single large bill.
To see due dates laid out, print the bill calendar planner. To look more closely at plans you pay for repeatedly, use the subscription cost calculator, and to fit the totals into a full month, try the budget planner.
Assumptions and limits
- Each amount is treated as constant for the whole year. Price changes and one time purchases are not modeled.
- A year is counted as 52 weeks, 26 two week periods, 24 half months, 12 months and so on, and per day figures divide the year by 365.
- Taxes and fees are only included if they are part of the amount you enter.
- The starting rows are examples of how to enter a bill and are not suggestions about what you pay.
Frequently asked questions
How do I find the yearly cost of a weekly bill?
Multiply the weekly amount by 52. A $15 weekly charge is $780 a year.
Why is every 2 weeks different from twice a month?
Every two weeks happens 26 times a year, while twice a month happens 24 times. A bill charged every other week costs two extra payments a year compared with a twice a month schedule of the same amount.
How many bills can I add?
Up to 30 rows fit. If you need more, group small bills of the same frequency into one row.
Can I use this for income as well?
The arithmetic is the same, so you can list pay of different frequencies to see a yearly total. The labels and notes are written for bills, though, and tax is not handled.