Penny PaydayThe example
One person, paid $1,600 every other Friday, with these monthly bills:
| Bill | Due | A month |
|---|---|---|
| Rent | 1st | $1,250 |
| Electric and internet | 25th | $140 |
| Phone | 12th | $60 |
| Car insurance | 5th | $130 |
| Car payment | 20th | $250 |
| Streaming and apps | 15th | $30 |
| Card minimum | 18th | $80 |
| Total | $1,940 |
Two checks a month, so each check covers half: $1,940 ÷ 2 = $970. The check that lands before rent is due won't always hold exactly half; here's how to even it out.
This example has a $250 car payment, $125 of each check.
One check, start to finish
| Take-home check | $1,600 |
| Half the monthly bills | −$970 |
| Set aside | −$75 |
| Groceries for two weeks | −$180 |
| Gas for two weeks | −$70 |
| Left for day to day | $305 |
| ÷ 14 days = $21.79, rounded down | $21 a day |
| Left over at payday (14 × $21 = $294) | $11 |
$21 a day covers everything not on the list: food out, coffee, a store run. Spend less one day and the days after get a little more; spend more and they get less. To see it with your own numbers, open this example in the calculator and change what's different.
Where the $1,600 goes
| Part | Amount | Share of the check |
|---|---|---|
| Bills (half the month) | $970 | 61% |
| Set aside | $75 | 5% |
| Groceries $180, gas $70 | $250 | 16% |
| Day to day, including the $11 left over | $305 | 19% |
| Total | $1,600 | 100% |
Shares are rounded to whole percents.
Compared with the 50/30/20 rule of thumb
The 50/30/20 rule of thumb splits take-home pay into 50% needs, 30% wants and 20% savings. On a $1,600 check that's $800 for needs, $480 for wants and $320 for savings.
In the example, needs (the bills, groceries and gas) take $1,220, 76% of the check. Half the rent alone is $625, 39%. When rent is that big a share, the rule's split doesn't fit, and the set-aside starts smaller ($75, 5%). It's a rule of thumb, not a rule; the daily number is what tells you whether the check works.
If your numbers are different
- Every extra $100 of bills on this check takes about $7 off the daily number ($100 ÷ 14 = $7.14).
- Two months a year bring a third check: $4,800 that month instead of $3,200. Find your 3-paycheck months.
- Hours change from check to check? Plan on your lowest regular check and treat anything above it as extra when it lands.
- Paid weekly instead? A $800 weekly check is the same money; plan it over 7 days.
Questions
How much is $1,600 biweekly a month?
$3,200 in most months, from two checks. Averaged over the year it's $3,467 a month (26 checks ÷ 12 months), because two months bring a third check of $1,600.
How much is $1,600 biweekly a year?
$41,600 in take-home pay over 26 checks. Some years have 27 paydays, which makes it $43,200.
How much can I spend a day on $1,600 biweekly?
There's no single right number: it's what's left after the bills due before your next payday and what you plan to set aside and buy, divided by 14. In this made-up example it's $21 a day. Try yours in the calculator.
Penny does this with your real numbers. Type your check and bills once; every payday she splits the new check and gives you one number a day.
Other paycheck sizes: $1,500 biweekly · $1,700 biweekly · All paycheck sizes
This page does arithmetic on example numbers. It is not financial advice.