# Curious about the wording of my salary in the offer letter - what does “annualizes to a rate” mean? [closed]

I negotiated with my firm and received an offer of \$91,000 per year.

The only issue I have was that, upon reviewing my offer, I am not sure it adds up precisely.

In my offer letter is says my salary is - "At a biweekly rate of \$3,500.00 which annualizes to approximately \$91,000.00"

however, \$3500 * 24 = \$84,000. Am I missing something here?

• In fact, you are getting 91k for 364 days, so the annual salary is 1/365 higher than that, another \$255.62 – Ross Millikan Nov 24 '20 at 5:09
• I’m voting to close this question because it appears to be based on a minor confusion about how many weeks are in a year. – Bernhard Barker Nov 24 '20 at 9:01
• Note: "biweekly", as the name indicates, means "once every two weeks", not "twice a month", and there are about 52 weeks in a year. – Bernhard Barker Nov 24 '20 at 11:14
• the oxfordlearnersdictionaries.com website defines "biweekly" as "produced or happening every two weeks or twice each week". So it has two meanings :D – lucidbrot Nov 24 '20 at 13:02
• @mattumotu Yes, biweekly has a long-standing ambiguity but I took it as every 2 weeks. OP took it as twice a month which I've never heard before... – MonkeyZeus Nov 24 '20 at 14:49

In my offer letter is says my salary is - "At a biweekly rate of \$3,500.00 which annualizes to approximately \$91,000.00"

however, \$3500 * 24 = \$84,000. Am I missing something here?

There are 26 biweekly periods, so 26 * \$3,500 = \$91,000.

This is an understandable confusion. It seems to make sense to divide a monthly stated salary in half when discussing a biweekly salary. The confusion also happens when benefits like insurance premiums are stated with an annual or monthly number, but pay is biweekly.

There are 365 days in a year*.

There are (365/7)/2 = 26.071 bi-weekly periods in a year.

\$91000/26.071 = \$3490.468

So yes, you are missing something here.

\$3500*26.071 - \$91000 = \$248.50

You're getting \$248.50 more per annum.

*there are approx 365.25, but let's ignore leap years..

• Where does the figure of \$ 248.50 come from? – Neil Tarrant Nov 24 '20 at 11:53
• I get a difference of exactly \$250 when using a year with 365 days. – CodesInChaos Nov 24 '20 at 12:03
• Yeah, \$3,500 per two-week period is exactly \$250 per calendar day, and a common year is 52 weeks plus one day, so you get an extra \$250 per common year and an extra \$500 per leap year. – Tanner Swett Nov 24 '20 at 12:11
• In practice it is more like you get an extra \$3500 every 11.2 years, isn't it? – Didier L Nov 24 '20 at 13:57
• @CodesInChaos see added content regarding extra calculation – Lamar Latrell Nov 24 '20 at 17:07