# What is my annual income?

Computes gross yearly income from pay per hour, day, week, two weeks, half month, month or year, the paid weeks a year, and other income.

- Page: https://www.acalculator.org/finance/annual-income-calculator
- JSON spec: https://www.acalculator.org/finance/annual-income-calculator.json
- Version: 2d79be1ce88f

## Default answer

Example with the default inputs (Your pay $25.00, Paid per hour, Hours a week 40, Paid weeks a year 52, Other income $0.00): Pay of $25.00 per hour comes to a gross income of $52,000.00 a year, or $4,333.33 a month.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| pay | Your pay | Your gross pay (before tax) for the period chosen below. |
| per | Paid | The period your pay is for: per hour, day, week, two weeks, half month, month or year. |
| hours | Hours a week | The hours you are paid for in a week. |
| days | Days a week | The days you are paid for in a week. |
| weeks | Paid weeks a year | The weeks you are paid for in a year: 52, less any unpaid weeks off. |
| other | Other income | Other gross income such as tips, a bonus, commission, side work or rent received. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| annual | Gross income per year | All gross income for a year: pay plus other income. |
| monthly | Gross income per month | The gross income per year ÷ 12. |
| biweekly | Every two weeks | The gross income per year ÷ 26. |
| weekly | Per week | The gross income per year ÷ 52. |
| wages | From your pay | Your pay for a year: pay × the times it is paid in a year. |
| otherYear | Other income per year | Other income for a year. |

## Method

yearly income = pay × times paid a year + other income a year, where hourly pay is paid hours a week × weeks, daily pay days a week × weeks, weekly pay weeks, two-weekly pay weeks ÷ 2, twice-monthly pay 24, monthly pay 12 and yearly pay 1 time; monthly income = yearly ÷ 12.

## Assumptions

- Income is gross: before income tax, Social Security and Medicare tax, and other deductions.
- A year has 52 weeks. Unpaid weeks off lower the paid weeks for hourly, daily, weekly and two-weekly pay; monthly, twice-monthly and yearly pay do not depend on weeks.
- Every paid hour earns the same rate: overtime at a higher rate is not included unless you add it to other income.
- Other income is added as entered, per month or per year.

## Worked examples

1. pay = $22.50, per = hour, hours = 35, weeks = 50, other = $900.00 gives wages = $39,375.00, annual = $40,275.00, monthly = $3,356.25. Source: hand calculation in content.mdx: 22.5 × 35 × 50 = 39,375; + 900 = 40,275.
2. pay = $1,800.00, per = biweek, weeks = 52 gives annual = $46,800.00, monthly = $3,900.00. Source: hand calculation in content.mdx: 1,800 × 26 = 46,800.
3. pay = $4,200.00, per = semimonth gives annual = $100,800.00, monthly = $8,400.00. Source: hand calculation in content.mdx: 4,200 × 24 = 100,800 (29 CFR 778.113(b): 24 half-month periods a year).
4. pay = $4,000.00, per = month gives annual = $48,000.00, monthly = $4,000.00. Source: hand calculation in content.mdx: 4,000 × 12 = 48,000 (paid weeks do not change monthly pay).
5. pay = $180.00, per = day, days = 4, weeks = 48 gives annual = $34,560.00, weekly = $664.62. Source: hand calculation in content.mdx: 180 × 4 × 48 = 34,560; ÷ 52 = 664.62.

## FAQ

### How do I calculate my annual income?

Multiply your pay by how many times you get it in a year, then add any other income. Hourly pay: rate × hours a week × paid weeks. Every two weeks: × 26. Twice a month: × 24. Monthly: × 12. For example, $22.50 an hour for 35 hours a week over 50 paid weeks is 22.5 × 35 × 50 = $39,375.

### Is annual income before or after tax?

This calculator gives gross income, before tax. Gross income is what forms, loan applications and job offers usually ask for. Take-home pay is lower, after income tax, Social Security and Medicare tax, and other deductions.

### What counts as other income?

Money you receive besides your regular pay: tips, bonuses, commissions, side work, rent received, or interest. Federal tax law defines gross income as all income from whatever source, including these (26 U.S.C. 61).

### How do I handle unpaid time off?

Lower the paid weeks a year by the weeks you are not paid. Paid vacation and paid holidays stay in, because you are paid for them.

### What is $1,800 every two weeks a year?

There are 26 two-week pay periods in a 52-week year, so $1,800 every two weeks is 1,800 × 26 = $46,800 a year, or $3,900 a month.

### Why do biweekly and twice-a-month pay give different totals?

Biweekly pay comes 26 times a year and twice-a-month pay comes 24 times. $2,000 biweekly is $52,000 a year; $2,000 twice a month is $48,000.

## Sources

- 26 U.S.C. 61(a): gross income means all income from whatever source derived, including compensation for services, fees, commissions, fringe benefits, business income, interest and rents. https://www.law.cornell.edu/uscode/text/26/61
- 29 CFR 778.113(b): a monthly salary × 12 ÷ 52 and a semimonthly salary × 24 ÷ 52 give the weekly amount (52 weeks, 12 months and 24 half months a year). https://www.law.cornell.edu/cfr/text/29/778.113