Annual Income Calculator
Use 52 for paid year-round. Drop it (e.g. 50) if you take unpaid weeks off.
This tool shows gross income before taxes and deductions. Actual take-home pay depends on your tax bracket, benefits, and local rules.
Annual income is the total money you earn in a year before taxes and deductions. If you are paid $20 an hour and work 40 hours a week, your annual income is $41,600. The calculator above does the conversion for any pay rate. This page also explains what annual income means, how gross and net differ, and how to work out the number by hand.
What is annual income?
Annual income is the total amount you earn in one year before anything is taken out. That includes your base pay plus overtime, bonuses, commission, and any other regular earnings. The figure before deductions is your gross annual income. The amount you actually keep after taxes and other withholdings is your net annual income.
Most job offers, loan applications, and rental forms ask for annual income. They almost always mean the gross yearly figure unless the form says “take-home” or “net.”
What does annual income mean on a form or application?
When a lender, landlord, or employer asks for your annual income, they want your gross yearly earnings. This is the number on your offer letter or the total of your pay stubs before tax. Lenders use it to judge how much you can borrow. Landlords use it to check you can cover rent. Neither wants your take-home pay, because your gross figure is the standard measure everyone compares against.
If you have more than one job, add the gross income from all of them. If your hours change week to week, use an average across a normal stretch of the year.
Is annual income monthly or yearly?
Annual income is yearly. The word annual means “per year.” If a form asks for annual income and you only know your monthly pay, multiply the monthly figure by 12. For example, $4,000 a month is $48,000 a year.
How do you calculate annual income?
The formula depends on how you are paid.
Paid hourly: annual income = hourly rate × hours per week × weeks worked per year. A common full-time year is 40 hours a week across 52 weeks.
Paid daily: annual income = day rate × days per week × weeks per year.
Paid weekly: annual income = weekly pay × weeks per year.
Paid every two weeks: annual income = biweekly pay × 26.
Paid monthly: annual income = monthly pay × 12.
Worked example: you earn $28 an hour, work 40 hours a week, 52 weeks a year. Multiply 28 × 40 × 52. That gives $58,240 per year.
How to find annual income from an hourly wage
Take your hourly rate and multiply by the hours you work in a week, then by the number of weeks you work in a year. If you take unpaid time off, use fewer than 52 weeks. Someone earning $25 an hour, 40 hours a week, 50 paid weeks a year makes $25 × 40 × 50, which is $50,000.
The calculator handles this both ways. Enter an hourly rate to see the yearly total, or enter a yearly salary to see the matching hourly figure.
Hourly to annual income at 40 hours per week
This table shows common hourly rates converted to yearly income, based on 40 hours a week and 52 weeks a year.
| Hourly rate | Weekly | Monthly | Annual income |
|---|---|---|---|
| $15 | $600 | $2,600 | $31,200 |
| $18 | $720 | $3,120 | $37,440 |
| $20 | $800 | $3,467 | $41,600 |
| $22 | $880 | $3,813 | $45,760 |
| $25 | $1,000 | $4,333 | $52,000 |
| $28 | $1,120 | $4,853 | $58,240 |
| $30 | $1,200 | $5,200 | $62,400 |
| $35 | $1,400 | $6,067 | $72,800 |
| $40 | $1,600 | $6,933 | $83,200 |
| $45 | $1,800 | $7,800 | $93,600 |
| $50 | $2,000 | $8,667 | $104,000 |
Need the reverse, a yearly salary broken into an hourly rate? Use the salary to hourly calculator.
What is gross annual income?
Gross annual income is your total yearly earnings before any tax or deduction. It is the headline number on your offer letter. If your salary is $60,000, that is your gross annual income, even though the amount landing in your bank account each month is smaller.
Gross income includes base salary, overtime, tips, bonuses, and commission. It is the figure lenders and landlords ask for because it is the same across everyone, regardless of personal tax situation.
What is net annual income?
Net annual income is what you keep after taxes, insurance, retirement contributions, and other deductions come out. It is always lower than gross. Two people with the same gross salary can have different net income because of different tax brackets, benefit choices, and where they live.
This calculator shows gross income only. Your net figure depends on rules that change by country, state, and personal circumstance, so a single formula cannot produce an accurate take-home number for everyone.
Gross vs net annual income: what is the difference?
Gross is before deductions. Net is after. Gross is the bigger number and the one used for applications and comparisons. Net is the smaller number and the one that reflects your real spending power.
Example: a $70,000 gross salary taxed and deducted at a combined 22% leaves roughly $54,600 net. The gross figure is what you tell a lender. The net figure is what you budget with.
Total annual income when you have more than one source
Total annual income adds up every source you have in a year. That means your main job, any second job, freelance work, rental income, and investment income. Add the gross amount from each, then you have your total gross annual income.
For freelancers and side earners, remember that payment platforms take a cut before the money reaches you. If a chunk of your income comes through digital payments, the PayPal fee calculator shows what those fees remove from each transaction.
How many work hours are in a year?
A standard full-time year is 2,080 hours. That comes from 40 hours a week across 52 weeks. If you take unpaid weeks off, your actual paid hours drop. Someone working 40 hours a week for 50 weeks logs 2,000 paid hours. The calculator lets you set your own weeks per year so the yearly total matches your real schedule.
Frequently asked questions
Does annual income mean before or after tax?
Before tax, in almost every case. When a form asks for annual income without saying otherwise, it wants your gross yearly earnings before deductions.
How do I calculate annual income from a monthly salary?
Multiply your monthly pay by 12. A monthly salary of $5,000 is an annual income of $60,000.
Is a bonus part of annual income?
Yes. Bonuses, commission, tips, and overtime all count toward gross annual income. If you want a stable figure, use a typical year rather than an unusually high or low one.
What is a good annual income?
It depends entirely on where you live and your household size. A comfortable income in a low-cost area can fall short in an expensive city. Compare your figure against local cost of living rather than a single national number.
How do I turn my annual income back into an hourly rate?
Divide your annual income by your total yearly hours. At 2,080 hours, a $52,000 salary works out to $25 an hour. The calculator does this automatically when you enter a yearly figure.
Try these next
- Overtime Calculator – work out overtime pay on top of your base rate
- Pay Raise Calculator – see what a raise adds to your yearly income
- Time and a Half Calculator – calculate 1.5x overtime pay
- Commission Calculator – add sales commission to your earnings
