Monthly Income Calculator
Use our monthly income calculator to calculate your income each month given an hourly, daily, weekly, bi-weekly, semi-monthly, quarterly, or annual wage.
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How to Calculate Monthly Income
Most people are paid on an hourly or annual basis in the form of an hourly wage or an annual salary. But it’s also important to know your monthly income for things like budgeting, financial planning, or for making a major purchase such as a home or vehicle.
Knowing your monthly income is essential for managing your finances and determining whether it’s a good time to make a major purchase or wait for your next pay raise. You can figure out your monthly income in a few easy steps.
Step One: Determine Your Hourly Wage
The first step to calculating monthly income is to find your hourly wage. You probably already know this, but if you aren’t sure, you can check your pay stub or ask your employer.
Step Two: Calculate Your Annual Income
Once you know your hourly wage, you can calculate your annual income. You can do this using our hourly to salary converter or with some easy math.
To calculate your annual income, multiply your hourly wage by the number of hours you work in a year. You can use this formula to calculate it:
annual income = hourly wage × hours per week × 52
So, your annual income is equal to your hourly wage times the average number of hours you work each week, times 52 (weeks per year). For most people, the normal hours worked per year is 2,080 which equates to 40 hours per week.
Step Three: Calculate Your Monthly Income
Now you’re ready to calculate your monthly income. To do so, simply divide your annual income by 12, since there are 12 months in a year. You can also take your hourly wage times the number of hours per week you work (typically 40) times 4 weeks per month.
monthly income = annual income ÷ 12
This is your gross monthly income, or your income before any taxes are paid.
Step Four: Account for Deductions
When budgeting and planning, you’re usually most interested in your take-home pay, or your net monthly income. Unfortunately, most people have tax withholdings and other deductions, such as retirement savings or health care.
If you need to calculate your net monthly income, you will need to calculate your net hourly wage, then follow the steps above using that number.
To find your net hourly wage, look at your last paycheck and divide the net (take-home) pay by the number of hours you worked during the period. This is your average net hourly wage.
Now, using this value, follow steps one to three above to find your net income per month.