If you are an employee, your monthly net income is your take-home pay for the month, after deductions have been withheld. If you are a business, your monthly net income is your monthly earnings or profit. The calculations for both situations vary.
Things You'll Need
- Pay stub
- Cash flow statement
Employee Monthly Net
Figure your hours worked for the year. The calendar year has 2,080 hours. To determine your hours for the month, calculate as follows: 2,080 / 12 = 173.33 hours.
Figure monthly gross pay based on your salary. For instance, say your annual salary is $50,000. Calculate your gross monthly pay as follows: $50,000 / 12 pay periods = $4,166.67. Verify your gross monthly income by using a semi-monthly payroll, which occurs twice per month: $50,000 / 24 pay periods = $2,083.33 x 2 = $4,166.67.
Subtract monthly deductions from your gross monthly pay. This includes federal, state and FICA taxes, plus involuntary deductions such as health and retirement benefits. The result is your net monthly income.
Business Monthly Net
Determine the company's monthly revenue--how much money it made for the month.
Subtract sales costs and all other expenses for the month to arrive at the before-tax amount. Check your cash flow statement for the total monthly revenue. Your cash flow statement should show all cash and cash equivalents coming into and exiting the business.
Subtract taxes to arrive at your monthly net income. For instance, say your gross monthly earnings amounted to $30,000. Your expenses were $10,000 and you paid $5,000 in income taxes--your net monthly income is $15,000.
- Photo Credit Calculating payments image by Christopher Meder from Fotolia.com
How to Calculate Gross Monthly Income From Annual
Calculating your monthly income can be helpful for budgeting purposes. You can more effectively figure out how much of your income to...
How Can I Calculate My Monthly Salary?
Understanding your monthly salary can be a good starting point for creating a savings or investment plan, drafting a household budget or...
How to Calculate Net Income Growth
Net income is a firm's profit for a period. The growth rate of net income is how much the net income changes...
How to Calculate Monthly Tax
Monthly taxes are complicated. Employers will take out tax money for Medicare, Social Security, federal income tax and state income tax. Payments...
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...