# What is my gross income per month?

Computes gross monthly and yearly income (before tax) from pay for any period plus other income such as tips, bonuses or rent.

- Page: https://www.acalculator.org/finance/gross-income-calculator
- JSON spec: https://www.acalculator.org/finance/gross-income-calculator.json
- Version: fb3aa6db5781

## Default answer

Example with the default inputs (Your pay $1,900.00, Paid every two weeks, Paid weeks a year 52, Other income $0.00): Pay of $1,900.00 every two weeks and $0.00 a year of other income is a gross income of $4,116.67 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 = $22.00, per = hour, hours = 40, weeks = 52, other = $300.00 gives wages = $45,760.00, otherYear = $3,600.00, annual = $49,360.00, monthly = $4,113.33. Source: hand calculation in content.mdx: 22 × 40 × 52 = 45,760; + 300 × 12 = 49,360; ÷ 12 = 4,113.33.
2. pay = $2,100.00, per = biweek, weeks = 52 gives annual = $54,600.00, monthly = $4,550.00. Source: hand calculation in content.mdx: 2,100 × 26 = 54,600; ÷ 12 = 4,550.
3. pay = $65,000.00, per = year gives monthly = $5,416.67. Source: hand calculation in content.mdx: 65,000 ÷ 12 = 5,416.67.
4. pay = $950.00, per = week, weeks = 52, other = $250.00 gives annual = $52,400.00, monthly = $4,366.67. Source: hand calculation in content.mdx: 950 × 52 = 49,400; + 250 × 12 = 52,400; ÷ 12 = 4,366.67.

## FAQ

### What is gross income?

Gross income is all your income before anything is taken out: pay, tips, bonuses, commissions and other income. Federal tax law defines it as all income from whatever source derived (26 U.S.C. 61). Net or take-home pay is what is left after tax and deductions.

### How do I calculate gross monthly income?

Work out your gross income for a year, then divide by 12. Hourly: rate × hours a week × 52 ÷ 12. Every two weeks: paycheck × 26 ÷ 12. Twice a month: paycheck × 2. Add other monthly income. $22 an hour for 40 hours plus $300 a month in tips is 22 × 40 × 52 ÷ 12 + 300 = $4,113.33.

### Why do lenders ask for gross monthly income?

Lenders compare your monthly debt payments with your gross monthly income to get your debt-to-income ratio. The Consumer Financial Protection Bureau defines it as all your monthly debt payments divided by your gross monthly income.

### Why is my biweekly pay times 2 not my monthly income?

A year has 26 two-week pay periods, not 24, so two paychecks a month would miss two a year. $2,100 every two weeks is 2,100 × 26 ÷ 12 = $4,550 a month, not $4,200.

### Does gross income include my employer's benefits?

This calculator counts only what you enter: your pay and your other income. Tax law can count some fringe benefits as income, but most job offers and loan forms ask for your pay.

### Is this the same as adjusted gross income on a tax return?

No. Adjusted gross income (AGI) is gross income minus certain adjustments, such as some retirement contributions. This calculator does not work out tax or AGI.

## Sources

- 26 U.S.C. 61(a): gross income means all income from whatever source derived. https://www.law.cornell.edu/uscode/text/26/61
- Consumer Financial Protection Bureau, What is a debt-to-income ratio? (all monthly debt payments divided by gross monthly income). https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/
- 29 CFR 778.113(b): 52 weeks, 12 months and 24 half months in a year. https://www.law.cornell.edu/cfr/text/29/778.113