Annual Earned Income Calculator

Work out your total yearly pay from work. Hourly mode annualizes your wage, hours and overtime. Income-sources mode adds up wages, salary, commissions, bonuses and tips. Either way you get weekly, monthly and annual figures plus your true effective hourly rate.

The short answer

Hourly mode: annual income = (hourly rate × regular hours + overtime hours × rate × multiplier) × weeks per year. Income-sources mode: annual earned income = wages + salary + commissions + bonuses + tips. Monthly = annual ÷ 12; weekly = annual ÷ 52.

Worked examples, verified against the tool

Hourly: $25/hr, 40 hours/week, 52 weeks, 5 overtime hours at 1.5x. Regular = 25 × 40 × 52 = $52,000. Overtime = 5 × 25 × 1.5 × 52 = $9,750. Annual = $61,750, monthly = $5,145.83, effective hourly = $61,750 ÷ 2,340 hours = $26.39.

Sources: wages $40,000 + salary $20,000 + commissions $5,000 + bonuses $3,000 = $68,000 annual, $5,666.67 monthly, $1,307.69 weekly. The tool returns these exact figures.

What counts as earned income

The IRS defines earned income as pay for work you perform: wages, salaries, tips, commissions and bonuses. It excludes unearned income such as dividends, interest, capital gains, pensions and Social Security. That distinction matters twice: some tax credits (like the Earned Income Tax Credit) only count earned income, and lenders asking for "annual income" usually mean earned income plus any other documented income.

Overtime: the 1.5x rule and its limits

Under the US Fair Labor Standards Act, non-exempt employees earn at least 1.5 times their regular rate for hours over 40 in a week. Some states and union contracts go further (double time after 12 hours in California, for example). Salaried exempt workers generally get no overtime. If your overtime is irregular, use your average weekly overtime hours across the year rather than your busiest month.

Unpaid time off changes everything

The default 52 weeks assumes paid work all year. With 2 unpaid weeks, use 50: at $25/hr and 40 hours, that is $50,000 instead of $52,000. Teachers, seasonal workers and contractors should always adjust weeks per year first, because it is the single biggest lever after the hourly rate.

What competing calculators miss

The ranking annual earned income page walks through one formula (wages + salary + commissions + bonuses) with examples but offers no interactive tool for hourly workers, no overtime math, and no pay-period breakdowns. This page serves both audiences: hourly workers get overtime-aware annualization with an effective hourly rate, and salaried workers get the income-sources summation, each with weekly, biweekly, monthly and annual figures.

Frequently asked questions

Is annual earned income before or after taxes?

Before. This is gross pay. Your take-home will be lower after federal and state taxes, Social Security, Medicare and any deductions.

Do bonuses and commissions count as earned income?

Yes. Both are pay for work performed, so they count as earned income for tax and lending purposes.

Do tips count?

Yes, tips are earned income and are taxable. Include your best annual estimate.

What is unearned income?

Income not from work: dividends, interest, capital gains, rental income, pensions, alimony and Social Security benefits. It is excluded from earned income.

How do lenders use this number?

Lenders use gross annual earned income to compute debt-to-income ratios for mortgages, auto loans and credit cards. They usually verify it with pay stubs or tax returns.

Should I use 52 weeks if I take unpaid vacation?

No. Use the weeks you are actually paid (50 for two unpaid weeks). Unpaid time off directly reduces annual income.

What is my effective hourly rate as a salaried worker?

Divide your annual pay by total hours worked. A $68,000 salary at 50 hours/week for 52 weeks is $26.15/hour, which reframes what the salary really pays.

Does overtime count toward earned income?

Yes, overtime pay is earned income. Enter your average weekly overtime hours to include it.