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Income Annualisation Calculator

Looking to plan the rest of the financial year out in terms of how much money you’re going to receive to spend, and even review your expenditure vs your income up to this point?

Our income annualisation calculator is a tool to help you determine your annual income from what you have been accruing for less than a full year accrued year to date. You’ll see how many paid days you’ve had, how many you’re yet to be paid for, and your total annualised income. Simply input the start of the financial date, latest pay period end date and year to date income.

How We Calculate Your Income Annualisation?

We use the following to give you your results:

  • Start of financial year date – the date the financial year started. A financial year is a period of 12 months used by businesses and governments for accounting and financial reporting purposes. It is also known as a fiscal year.
  • Latest pay period end date – this refers to the last day of your recently completed pay period as an employee, worker, and etc.
  • Year to date income – this refers to the total amount of income earned by an individual or a company from the beginning of the current calendar year up to the present time. For individuals, YTD income is typically reported on their pay ends, which show the amount of income earned and the taxes withheld for each pay period.

How Is Income Annualisation Used?

When you’re applying for a loan, one of the most confusing questions is related to your annual income. While some individuals on fixed salaries may find this question easy to answer, for a significant proportion of Australians, it’s not that simple.

Factors like overtime, bonus payments, holiday leave, or time off without pay can impact your end-of-year income, which can make determining your annual income a daunting task. Fortunately, an income annualisation calculator can provide you with an obscure estimation of what your annual income may be.

However, it’s essential to note that this is just an estimate and doesn’t reflect how all lenders calculate income. Therefore, it’s advisable to speak with an Excellence Finance Mortgage Broker who can evaluate your income based on specific lenders’ policies on income annualisation.

Need Assistance?

If you’re struggling with calculating your income and require assistance in applying for a home loan, it may be advantageous to engage with an Excellence Finance mortgage broker to gain insights into the process.

It’s vital to bear in mind that the calculations provided by the income annualisation calculator do not account for all fees and charges, and the results are solely an estimate.

Furthermore, interest rates and other costs are variable and subject to change over time, which could affect the total cost of the loan. Hence, borrowers should discuss their individual circumstances with a qualified Australian Credit Licensee or Authorised Credit Representative to make informed decisions.

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