Income Annualisation Calculator: Work Out Your Yearly Income
Quick answer: Our income annualisation calculator helps you work out your total yearly income from what you’ve earned so far this year. Essential for home loan applications.
What Is Income Annualisation?
Our Year-to-Date (YTD) Income annualisation calculator allows you to take your year-to-date earnings and calculate what your full-year income will be.
Example: If you’ve earned $30,000 in 6 months, your annualised income would be around $60,000 for the full year.
Lenders use this number to decide how much they’ll lend you for a home loan.
Why Do You Need This Calculator?
When applying for a home loan, lenders need to know your full annual income – not just what you’ve earned so far.
This YTD income annualisation calculator is especially useful if you:
- Started a new job partway through the year
- Have income that varies (overtime, bonuses, commissions)
- Changed jobs recently
How to Use the Calculator
You’ll need:
- Financial year start date (usually July 1)
- Your most recent pay date
- Your year-to-date (YTD) gross income from your latest payslip
The calculator then:
- Works out how many days you’ve worked this financial year
- Calculates your average daily income
- Projects your full year income
Result in seconds – You’ll see your annualised yearly income.
Why Lenders Use Annualised Income
Banks and lenders use your annualised income to:
- Decide how much they’ll lend you
- Check you can afford mortgage repayments
- Assess your borrowing power
- Meet responsible lending requirements
They want to see your full year earning capacity – not just a few months of pay.
Example: How It Works
Sarah’s situation:
- Started new job on September 1
- Current date: November 25
- Year-to-date income: $25,000
- Days worked: 86 days (Sept 1 to Nov 25)
Calculator result:
- Daily income: $290.70
- Annualised income: $106,105 (for full financial year)
This gives Sarah and her lender a clear picture of her yearly earning capacity.
Understanding Your Borrowing Power
Once you know your annualised income, you can estimate:
- How much you can borrow – Usually 3-4.5 times your yearly income
- What you can afford – Monthly repayments should be comfortable
- Deposit requirements – Most lenders want 5-20% deposit
Want to know more? Contact us for a free borrowing power assessment.
Tips for Accurate Results
Include these in your YTD income: ✅ Base salary ✅ Regular overtime ✅ Bonuses received ✅ Commission payments ✅ Allowances
Don’t include: ❌ One-off payments ❌ Irregular bonuses ❌ Tax refunds ❌ Government payments (unless regular)
What Happens Next?
After using the calculator:
- Save your result – You’ll need this for loan applications
- Check your payslip – Make sure your YTD figure is correct
- Contact us – We can verify your calculations and discuss loan options
- Get pre-approved – Know your budget before house hunting
Common Questions
What if I have multiple income sources?
Add all your YTD income together before using the calculator. Include all jobs, side income, and regular payments.
Does this include super?
No – use your gross income before super. Lenders assess your pre-super earnings.
What if my income varies a lot?
The calculator gives an average. For variable income, lenders might use a different method. Contact us to discuss your specific situation.
How accurate is this?
Very accurate for steady income. Less accurate if your income changes dramatically month to month. We can help verify the best approach for your situation.
Ready to Apply for a Home Loan?
Now you know your annualised income, let’s discuss your home loan options.
We can help you:
- Verify your income calculations
- Find lenders who suit your situation
- Get pre-approval quickly
- Understand your borrowing power
Contact us today for a free, no-obligation chat about your home loan needs.