While using **Excel**, sometimes you may need to calculate salary of employees if you run a company. To calculate the salary, you may need to** calculate prorated salary in Excel**. In this article, you will be able to know **how to Calculate Prorated Salary in Excel**. I will show **three **suitable ways and describe the whole procedure step by step with necessary illustrations. Hope you will enjoy the article and, by practicing the workbook, you can increase your Excel skills.

## What Is Prorated Salary?

Prorating of salary means a distribution of salary among the employees according to their working hours or working days. We can say this as a weighted distribution. If an employee works **20** days over **30 **days, he or she will get the salary for those days only instead of the whole month’s salary.

## Calculate Prorated Salary in Excel: 3 Suitable Ways

In this article, I will show three suitable and easy methods to calculate prorated salary in **Excel**. I will consider a dataset like the one given below. The dataset is about **Employee Information of ABC Company.** You can see the dataset having three columns **B**, **C**, & **D **called** Employee name, Joining Date, **and **Ending Date**. The dataset ranges from **B4 **to **D10**. You can also see that there is another data of **Annual Salary** which is** $15000.00**. With this dataset, I will show **how to calculate Prorated Salary in Excel**.

### 1. Use of YEARFRAC Function to Calculate Prorated Salary in Excel

This is the first method to get the **Prorated Salary in Excel.** I added **two **new columns in the dataset called **Year Fraction **and** Amount**. I will use **the YEARFRAC function** here. Follow the procedure step by step. I have attached the necessary illustrations here for your better understanding.

**Steps:**

**Select**the**E5**cell first.

- Then,
**write**down the following formula in the selected cell.

`=YEARFRAC(C5,D5,1)`

- After that,
**press**the**EnterÂ**button.

- Consequently, you will find the year fraction.
- Then drag the
**Fill-handle**from**E5**to**E10**to copy the formula.

- Hence, you will get the all-year fractions.

- Now select the
**F5**cell and copy the following formula in it.

`=$C$12*E5`

- After pressing
**Enter**, you will get the result like the picture.**Copy**down the formula from**E5**to**E10Â**cells.

- As a result, you will get the prorated salary of the employees.

### 2. Calculating Prorated Salary in Excel by Using DAYS Function

This is the second method of this article. I will use **the DAYS function** here to calculate prorated salary in excel. The dataset will remain the same as the previous one. Letâ€™s follow the steps described below.

**Steps:**

- First,
**select**the**E5**

- Then,
**copy**the following formula in the selected cell.

`=DAYS(D5,C5) + 1`

- After pressing
**Enter**, you get the difference of days. - Then, drag the
**Fill-handle**from**E5**to**E10**.

- As a result, you will get all the differences of days in the
**E5Â**to**E10**cells.

- Then, write down the following formula in the
**F5Â**cell:

`=($C$12/365)*E5`

- After that, press
**Enter**. - Therefore, you will get the result in the
**F5Â**cell. - Then,
**copy**down the formula from**F5**to**F10**.

- Hence, you will find the desired result in the
**F5Â**toÂ**F10Â**cells.

### 3. Inserting Generic Formula to Calculate Prorated Salary in Excel

This is the last method I am going to describe in this article. Here, I will introduce a **generic ****formula** to calculate the prorated salary in Excel. This is a very simple way. I hope you will understand the method easily. Follow the steps given below.

**Steps:**

- Select the
**E5**cell first. - Then, write down the following formula in that cell.

`=D5-C5+1`

- After that,
**press**the**EnterÂ**button. - After getting the result, use the
**Fill Handle**to copy formula from**E5**to**E10**.

- Consequently, you will get the result just like the picture given below.

- Now, apply the following formula in the
**F5Â**cell.

`=($C$12/365)*E5`

- After that, press
**Enter**.

- You will get the result like the picture given below.

- After copying down the formula from
**F5**to**F10**cell, you will get the result just like the picture given below.

## How to Prorate Salary for Semi-Monthly

Sometimes, it becomes important to prorate salary for semi-monthly. In this section of this article, I will show** how to prorate salary semi-monthly**. I will consider the same dataset mentioned earlier. I am taking every employee of this company will get the semi-monthly prorated salary. Only a new column called Amount was added here. Follow the steps described below.

**Steps:**

- Select the
**E5**cell first.

- Then, write down the following formula in that cell and copy it down from
**E5**to the**E10Â**cells.

`=$C$12/2`

- As a result, you will get the prorated semimonthly salary in the
**EÂ**column.

## Things to Remember

- I have used the
**365**in**DAYS**function to divide the annual salary to convert it into per dayâ€™s salary.

**Download Practice Workbook**

Please download the workbook to practice yourself.

## Conclusion

In this article, I have tried to explain **how to Calculate Prorated Salary in Excel**. I hope, you have learned something new from this article. Now, extend your skill by following the steps of these methods. I hope you have enjoyed the whole tutorial. If you have any kind of queries feel free to ask me in the comment section. Donâ€™t forget to give us your feedback.

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