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 Do I Calculate YTD Income?
How you calculate YTD income differs depending on whether you are calculating it for a business or for an individual.
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