How to Calculate Your Yearly Income (Without the Headache)

💰 When you’re applying for a loan, filing taxes, or just getting your money organized, one number always comes up: yearly income.

But what is yearly income, and how do you calculate it? Don’t worry—it’s simpler than you think. Let’s walk through it step by step.

🙋  What Is Yearly Income?

Yearly income, or annual income, is the total amount of money you earn in a year—before taxes and other deductions.

This includes:

• Your salary or wages
• Any bonuses or commissions
• Freelance or side gig income
• Tips (if you earn them)
• Rental income
• Interest or dividends

💡 Basically: If it’s money coming in regularly, it probably counts!

📅 Start with Your Main Job

Depending on how you’re paid, here’s how to calculate it:

If You’re Paid Hourly

Yearly Income = Hourly Rate × Hours per Week × 52

⚙️ Example:
If you earn $20/hour and work 40 hours/week:

$20 × 40 × 52 = $41,600 per year

If You’re Paid Weekly

Yearly Income = Weekly Pay × 52

If You’re Paid Bi weekly

Yearly Income = Biweekly Pay × 26

If You’re Paid Monthly

Yearly Income = Monthly Pay × 12

If You’re Salaried

Just use your gross annual salary (the amount before taxes).

💡 Add Extra Income (If You Have Any)

Do you have a side hustle? Rent out a room? Sell crafts online? All that counts!

List anything you earn regularly throughout the year:

• Freelance work
• Tips
• Investments
• Commissions
• Rental property income

Then add it to your main income total.

🧾 Add It All Up!

Here’s what your final calculation might look like:

Main job (salary): $41,600  
Freelance work: $6,000  
Dividends: $400  
Total Yearly Income = $48,000

👏 Boom! That’s your total gross yearly income.

🧮 Calculator

Use the tool below to calculate your annual or yearly income

📌 A Quick Note on Gross vs. Net Income

• Gross income = before taxes
• Net income = after taxes and deductions

When someone asks for your yearly income, they usually mean gross—unless they’re asking about your take-home pay.

💵 Why It Matters

Knowing your yearly income helps you:

• Set a realistic budget
• Plan for savings and investments
• Understand your tax bracket
• Apply for loans or credit
• Make smart career or job decisions

📋 Quick Recap