YTD Income Calculator

Annualising Year-to-Date Income

Annualised income is an estimate of a full year's earnings at the pace shown in a shorter earning period. This year-to-date (YTD) income calculator divides gross earnings by the inclusive calendar days entered, then multiplies by your selected annual day basis.

Annual income means income over a year. Gross annual income is the amount before tax and other deductions. Net pay is what remains after deductions, as explained in Moneysmart's payslip guide.

The calculation is gross earnings divided by earning days, multiplied by 365 or 366. Recurring income uses the same calculation after subtracting your excluded amounts. A lender's accepted income can differ because it applies its own evidence requirements and rules for variable pay.

In the starting example, $24,000 over 92 days annualises to $95,217 on a 365-day basis. Removing $1,000 of one-off earnings leaves $23,000, which annualises to $91,250. The recurring monthly average is $7,604.

Both the start and end dates count, including weekends and leave days. A one-day period therefore uses one day, and a leap day counts when it falls within the period. Choose 366 only when that is the annual day basis you want to apply.

Download the inputs and results as a comma-separated values (CSV) file to open in Excel. To reproduce the estimate in a spreadsheet, divide earnings by the end date minus the start date plus one, then multiply by the annual day basis.

Choosing the Payslip Dates

The earning period must match the gross total you enter. Use the financial-year start for earnings accumulated since that boundary, or your later employment start if you joined partway through the year.

The pay-period end is the last day covered by the payslip. The pay date is when the employer pays you, which can be later. The Fair Work Ombudsman's payslip requirements list these separately.

This calculator uses the pay-period end, with both endpoints included. A lender using pay dates or a different annualisation convention can produce another figure. If a payslip's YTD total resets across a financial-year boundary, reconcile the total with its covered earnings before calculating.

For example, $3,000 earned over your first 30 calendar days projects to $36,500 on a 365-day basis. Counting days before employment began would understate that earning pace. A short history also gives less evidence that the same hours will continue.

Bonuses, Back Pay and Variable Earnings

Remove one-off amounts when you want an estimate of recurring pay. A bonus paid once in a short period otherwise gets projected as though it repeats at the same daily pace.

Enter only excluded amounts already included in the gross total. Back pay can relate to work outside the earning period, so including it can inflate the daily average. Don't subtract a bonus twice if your starting gross figure already excludes it.

Recurring overtime, commission or allowances can remain in the recurring estimate if they form part of the earning pace you want to test. That choice doesn't establish lender acceptance. The calculator applies no income discount or lender-specific annual working-week assumption.

Comparing the Estimate With Salary

The salary comparison subtracts the annual salary entered from the annualised recurring estimate. At the starting settings, $91,250 is $3,750 below the $95,000 salary. A negative difference appears with a minus sign.

Compare amounts on the same basis, excluding employer superannuation from both. A package that includes superannuation is larger than its cash salary. This tool calculates gross cash earnings, so it doesn't estimate tax or take-home pay.

Unpaid leave and irregular hours can reduce the annualised average. A recent pay rise can make the average lag behind the current contract because earlier earnings were lower. Seasonal overtime can have the opposite effect when the busiest period dominates the payslip.

Use the difference to identify what the payslip needs to explain. Separate ongoing earnings from one-off payments, then use the employment contract and payslip breakdown to reconcile the recurring estimate with current salary.