Quick Scoop

Annual income is the total money you earn in one year. In most everyday use, it usually means your gross annual income before taxes and deductions, while net annual income is what you actually take home after deductions.

What it includes

• Salary or wages.
• Bonuses, commissions, and overtime.
• Tips, interest, dividends, or other earnings.

Simple formula

If you’re paid hourly, a basic estimate is:

Hourly rate × hours per week × 52 weeks = annual income

If you’re paid monthly:

Monthly pay × 12 = annual income

Example

If you earn $4,000 per month, your annual income is $48,000 before taxes and deductions.

If you want, I can also show you how to calculate annual income from hourly pay, weekly pay, or irregular income.