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Work & Pay

Annual Income Calculator

Add up every income source — a salary, a side job, freelance work, rent — into one annual and monthly figure.

Add an amount to any income source to see your total for the year.

Income sources

Exact calculation. Given your inputs, this is the answer — no estimation involved.

How this calculator works

Each source is annualised on its own terms and then summed. An hourly side job is multiplied by its hours and weeks; a monthly rent payment by twelve; a one-off bonus is added once.

Recurring pay uses calendar counts, not approximations: 26 biweekly paychecks a year, 24 semi-monthly, 12 monthly, 4 quarterly. This matters because 26 biweekly paychecks is not the same as 24 semi-monthly ones, even at the same annual salary.

The result is gross income — the figure a lender, a landlord or a benefits application asks for. It is before tax.

The formula

Exactly what happens to your numbers, step by step.

  1. Hourly sources

    annual = rate × hours per week × weeks per year

  2. Recurring sources

    weekly    × weeks worked
biweekly  × 26
semi-monthly × 24
monthly   × 12
quarterly × 4

  3. Total

    total annual = sum of every annualised source
monthly = total ÷ 12

A worked example

A $60,000 salary, a weekend job at $20 an hour for 10 hours a week, and $500 a month from a rental.

What you enter

Main job
$60,000 a year
Second job
$20/hour, 10 h/week, 52 weeks
Rental income
$500 a month

The working

Main job
$60,000
Second job
20 × 10 × 52 = $10,400
Rental
500 × 12 = $6,000
Total
$76,400

Total annual income: $76,400 — about $6,367 a month

The side income adds 27% on top of the salary. If you are applying for a mortgage, lenders usually want two years of history before counting income from a second job or a rental.

Assumptions

Every result here rests on these. Change your inputs and the result changes with them.

  • All figures are gross, before tax and deductions.
  • Income is assumed steady across the year. Seasonal or variable work should be entered as an annual total instead.
  • One-time amounts are counted once, in this year only.

What this cannot tell you

  • It does not distinguish income a lender will count from income they will not. Most lenders want two years of history for self-employment, bonuses and rental income.
  • Self-employment income here is gross revenue, not net profit after business expenses.

Questions people ask

Should I use gross or net income?

Enter gross — the amount before tax. Almost everything that asks for your annual income, including loan applications and rental applications, means gross. Use the Paycheck Calculator to see the take-home equivalent.

How do I handle irregular freelance income?

Total what you actually earned over the last twelve months and enter it as a single annual amount. Annualising a good month overstates the year.

Does this include my spouse’s income?

Only if you add it. For a joint mortgage application, add each person’s income as a separate source so the total reflects the household.

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Sources and review

This calculator uses standard arithmetic with no external rules or published rates, so there is nothing to cite beyond the formulas shown above.

Methodology version 1.0.0 · Last reviewed