# What is my monthly income?

Converts pay per hour, day, week, two weeks, half month or year into monthly income before tax, plus other monthly income such as tips or side work.

- Page: https://www.acalculator.org/finance/monthly-income-calculator
- JSON spec: https://www.acalculator.org/finance/monthly-income-calculator.json
- Version: b28c40c5ad0d

## 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 and $0.00 a year of other income is a monthly income of $4,333.33 before tax.

## 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 = $25.00, per = hour, hours = 40, weeks = 52 gives annual = $52,000.00, monthly = $4,333.33. Source: 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).
2. pay = $1,500.00, per = biweek, weeks = 52, other = $400.00 gives wages = $39,000.00, otherYear = $4,800.00, annual = $43,800.00, monthly = $3,650.00. Source: 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).
3. pay = $2,250.00, per = semimonth gives annual = $54,000.00, monthly = $4,500.00. Source: 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).
4. pay = $150.00, per = day, days = 5, weeks = 48 gives annual = $36,000.00, monthly = $3,000.00. Source: 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).

## FAQ

### How do I calculate my monthly income from an hourly wage?

Multiply your hourly pay by your hours a week and by 52 weeks, then divide by 12. $25 an hour for 40 hours a week is 25 × 40 × 52 = $52,000 a year, or $4,333.33 a month.

### Why not just multiply my weekly pay by 4?

Because a month is longer than 4 weeks: 52 weeks ÷ 12 months is about 4.33 weeks. Multiplying by 4 misses about one week of pay every three months.

### How do I turn biweekly pay into monthly income?

Multiply the paycheck by 26 (the paychecks in a year) and divide by 12. $1,500 every two weeks is 1,500 × 26 ÷ 12 = $3,250 a month. Two paychecks a month would be only $3,000, because two months a year have a third paycheck.

### What if I take unpaid time off?

Lower the paid weeks a year. 48 paid weeks means 4 unpaid weeks. Paid vacation and holidays still count as paid weeks. Monthly, twice-monthly and yearly pay do not change with the weeks.

### Is this monthly income before or after tax?

Before tax (gross). Income tax, Social Security and Medicare tax and other deductions come out of it. Your take-home pay is lower.

### What counts as other income?

Tips, commissions, bonuses, side work, rent you receive, or any other money that comes in regularly. Enter it per month, or switch the box to per year.

## Sources

- 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
- 26 U.S.C. 61(a): gross income means all income from whatever source derived. https://www.law.cornell.edu/uscode/text/26/61