Housing support
How to
2
Helpsheet 2 - payment frequency calculations
This will hopefully provide useful information when trying to budget as it explains
how to change amounts paid to match different payment periods, E.g. weekly,
monthly etc.
There is a separate information sheet available just on budgeting (Housing Support helpsheet
1) which provides tips when creating and maintaining a budget. There is also a separate financial
statement/budgeting sheet (Housing Support helpsheet 3) available that provides a step by step
work sheet to calculate your income/outgoings. These are available online, from the person that
gave you this sheet, or Housing Support.
How can this help me?
There are many advice websites that have on line budgeting tools that automatically calculate
amounts and payment frequencies. If you are using an on-line budgeting tool this help sheet should
not be necessary.
If you do not have access to the internet or prefer to do the calculations yourself then this may be
helpful.
This calculation sheet shows how to change the amounts from one payment frequency to another,
i.e., changing weekly payments to a monthly amount. There are many different types of payment
frequency but this help sheet includes the most common ones.
There are calculation tables to show how to convert payments to weekly, fortnightly (2 weekly), four
weekly and monthly. You will notice that with the exception of the daily payment conversions, that all
the other calculated figures in each table are the same.
There are also notes at the back of the sheet to explain how to input items that cost less than £1,
that MONTHLY and FOUR WEEKLY payments are NOT the same, and how to get an annual (once
a year) figure.
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What is frequency?
Frequency - this term is used to indicate how often a payment is made, for example weekly,
fortnightly (2 weekly), monthly, annual – there are other payment frequencies but these are most
common. It is important that when working out your budget the same payment frequency is used for
each item or your budget will be wrong.
For example, if your rent is weekly at £50 and your income is fortnightly at £200:
Correct way 1:
£50 weekly rent x 2 weeks = £100 fortnightly rent (50 x 2 = 100)
£200 fortnightly income - £100 fortnightly rent = £100 left over to spend per fortnight (200 - 100 = 100)
Correct way 2:
£200 fortnightly income ÷ 2 weeks = £100 weekly income (200 ÷ 2 = 100)
£100 weekly income - £50 weekly rent = £50 left over to spend per week (100 – 50 = 50)
Wrong way:
£200 fortnightly income - £50 weekly rent = £150 left over to spend either weekly or fortnightly???
(200 – 50 = 150)
Because the payment frequencies did not match before the calculations it has shown that there is
WAY more money left to spend than there actually is. This will mean that the budget figures will be
inaccurate and there may not be enough money to cover payments.
Housing Support contact
If you would like any extra information or would like to ask anything about the help sheet please
contact us:
T: 01384 814123
E: HousingSupport.Dachs@dudley.gov.uk
W: http://www.dudley.gov.uk/resident/housing/housing-options/housing-support/
Converting income received, or payments out, to same payment frequency
(how often the payment is made)
Converting payments to weekly
Symbol ÷ means divide the figure. Weekly payments are often shown as pw or p/w or wkly
Payments to Convert
Calculations
Example
Daily to weekly
Daily payment x 7 days
Daily paper is 75p (see notes A)
0.75 x 7 = £5.25 p/w
Fortnightly
(2 weekly) to weekly
Fortnightly payment ÷ 2 weeks
Fortnightly rent or benefit is £100
100 ÷ 2 = £50 p/w
Four weekly to weekly
Four weekly payment ÷ 4 weeks Four weekly rent or benefit
payment is £200
200 ÷ 4 = £50 p/w
Calendar monthly to weekly Step 1. Monthly payment x 12
months = total
Step 2. Total ÷ 52 weeks
Calendar monthly rent or benefit is
£216.67
Step 1. 216.67 x 12 = 2600.04
Step 2. 2600.04 ÷ 52 = £50 p/w
Annual (once a year - see
below notes C) to weekly
Annual payment due is £2600
2600 ÷ 52 = £50 p/w
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Amount ÷ 52 weeks
Converting payments to fortnightly (2 weekly)
Symbol ÷ means divide the figure
Fortnightly payments are often shown as f/n, fn or 2wkly
Payments to Convert
Calculations
Example
Daily to fortnightly
Daily payment x 14 days
Daily paper is 75p (see notes A)
0.75 x 14 = £10.50 f/n
Weekly to fortnightly
Weekly payment x 2 weeks
Fortnightly rent or benefit is £100
50 x 2 = £100 f/n
Four weekly to fortnightly
Four weekly payment ÷ 2 weeks Four weekly rent or benefit
payment is £200
200 ÷ 2 = £100 f/n
Monthly to fortnightly
Step 1. Monthly payment x 12
months = total
Step 2. Total ÷ 26 weeks
Calendar monthly rent or benefit is
£216.67
Step 1. 216.67 x 12 = 2600.04
Step 2. 2600.04 ÷ 26 = £100 f/n
Annual (once a year see below notes C) to
fortnightly
Amount ÷ 26 weeks
Annual payment due is £2600
2600.04 ÷ 26 = £100 f/n
Converting payments to monthly
Symbol ÷ means divide the figure
Monthly payments are often shown as pm, p/m or pcm
Payments to Convert
Calculations
Example
Daily to calendar monthly
Step 1. Amount x 365 days =
total
Step 2. Total ÷ 12 months =
amount payable
Daily paper is 75p
Step 1. 0.75 x 365 = 273.75
Step 2. 273.75 ÷ 12 = £22.81 p/m
Weekly to calendar monthly
- (see below notes B)
Step 1. Weekly payment x 52
weeks = total
Step 2. Total ÷ 12 months =
amount payable
Weekly rent or benefit is £50
Step 1. 50 x 52 = £2600
Step 2. 2600 ÷ 12 = £216.67 p/m
Fortnightly (2 weekly) to
calendar monthly
Step 1. Fortnightly payment x 26
weeks = total
Step 2. Total ÷ 12 months =
amount payable
Four Weekly to calendar
monthly - (see below
notes B)
Step 1. Four weekly payment x
13 pyts = total
Step 2.Total ÷ 12 months =
amount payable
Fortnightly rent or benefit is £100
Step 1. 100 x 26 = £2600
Step 2. 2600 ÷ 12 = £216.67 p/m
Step 2. 2600 ÷ 12 = £216.67 p/m
Four weekly rent or benefit is £200
Step 1. 200 x 13 = £2600
Step 2. 2600 ÷ 12 = £216.67 p/m
Annual (once a year - see
below notes C) to monthly
Amount ÷ 12 months
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Annual rent or benefits is £2600
2600 ÷ 12 = £216.67 p/m
Notes
Note A - inputting items that cost less than £1.00
Anything costing £1.00 or more should be input in a calculator as you see it:
eg. £1.75 will be 1.75
Anything that costs less than £1.00 needs a decimal point before the number, this can be input as an
‘0.’ Or ‘.’
eg. 75p will be ‘0.75’ or ‘.75’
This is only required if you are calculating your budget by hand with a calculator. On-line budgeting
sheets should have their own individual instructions.
Note B – monthly and four weekly payments are NOT the same
Please note that four weekly payments and calendar monthly payments are NOT the same.
Four weekly payments - paid every FOUR WEEKS on the same DAY of week. If something is paid
four weekly there are 13 payments due in one year.
Calendar monthly payments – paid every calendar month on the same DATE or DAY OF MONTH.
For example the money could be due on 15th of each month so the day will be different each month
but date remains constant. OR the payment may be due on a certain day of the month such as last
Thursday of each month, this will mean either 4 or 5 weeks between each payment depending on
the month, but the payment will always be on the Thursday. If something is paid monthly there are 12
payments due in one year.
If a weekly figure is needed to be monthly DO NOT multiply by 4. This will make the amount incorrect
– see below example:
If you calculate by 4 weeks: £50 x 4 weeks = £200
If you calculate monthly: £50 x 52 weeks = £2600 then
£2600 ÷ 12 months = £216.67
There is a £16.67 difference by not doing the calculation correctly. Your payment will be short £16.67
each month.
Calendar monthly payments can be abbreviated to pm, p/m or pcm
Note C – getting an annual (once a year or total for the year) figure
Some annual figures are easy to find out, for example car tax can be found on line, or on your renewal
letter.
Some annual figures need to be calculated.
For example, birthday presents. To get an annual figure just add up all the amounts for each occasion.
15 birthday presents are bought each year.
10 presents £10 each
10 presents x £10 = £100
4 presents are £15 each
4 presents x £15 = £60
1 present is £20
1 present x £20 = £20
£100 + £60 + £20 = £180 annual figure (ie, the amount spent on birthday presents each year)
This annual figure can then be converted to weekly, fortnightly, four weekly or monthly payments so an
amount can be saved regularly towards the cost instead of having to find a lump sum payment.
An annual payment can be referred to as - per annum
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If you would like to request an interpreter, translated large print or audio version in other languages,
please contact the equality and diversity unit on 01384 813400. For alternative formats in English
contact 01384 814123.
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