Gross income is the total of all your income before taxes and other deductions are removed. The amount left after all deductions is called net income. Calculating your gross income is fairly easy and straightforward using basic information from your pay stub and simple math.
Things You'll Need
- Pay stub
Identify your hourly wage rate.
Multiply your hourly rate of pay by the number of hours worked each day to find your daily gross earnings. A full-time workday typically consists of eight hours of work. Using $10.00 as an example of hourly wages, 8 x $10.00 will be $80.00 per day.
Find the weekly gross earnings by multiplying your hourly wage by the number of hours worked per week. The standard full-time work week is 40 hours, so gross weekly wages, again using $10.00 as hourly pay, would be 40 x $10.00, or $400.00.
Calculate your gross earnings per year by multiplying the your gross weekly pay by 52, or your hourly rate by the number of hours worked per year.
A standard 40-hour week translates to 2,080 hours per year, so gross wages would be 2,080 x $10.00, which is $20,800 per year.
Tips & Warnings
- Gross income is asked for on most financial documents, loan papers, mortgage applications and any time income is used as the basis for a decision.
- When a person is a salaried employee, the annual or monthly salary is the same as the annual or monthly gross wages.
How to Calculate Gross Income for Tax
Gross income can be defined as the income from all sources prior to any deduction or taxes. From a company's perspective it...
How to Calculate Your Gross Pay
The salary posted by most employers when searching for job candidates is the gross income. Gross income is the amount you earn...
How to Calculate Gross
Gross calculations are most often used to determine income or worth before deductions are made. A gross calculation can also be used...
How to Calculate Your Income
Knowing how to calculate your income is an important skill. It will enable you to make a personal budget, make a good...
How Do I Calculate YTD Income?
At the beginning of the year, your income starts to accumulate when you receive a paycheck. Your year-to-date (YTD) income is the...
How to Calculate Adjusted Gross Income
Adjusted gross income, often shortened to AGI, is used to determine an individual taxpayer's tax liability for income tax purposes. Adjusted gross...
How to Calculate Gross Monthly Income From a Paycheck Stub
When talking about monthly income, people use two major categories. Gross income is the total money you are paid before deductions. Net...