Ways to Annualise My Income?
When mortgage brokers are assisting their clients with various aspects of their finances, it is important to have a clear understanding of annualised income to be able to successfully assist their clients with any questions or concerns that may arise about this topic. Annualised income refers to the amount of money an individual makes over a 12-month period if the individual’s established pay rate has not changed.
Income Annualisation Calculator
Mortgage brokers can easily assist their clients with annualising their income by using an online Income Annualisation Calculator. The Income Annualisation Calculator allows for easy calculations by inputting the date the client started their job, the gross income shown on their last group certificate, the end date of their most recent payslip, and the YTD gross income from their most recent payslip.
Calculating Annualised Salary
Mortgage brokers can also calculate their client’s annualised salary by using the following equation: Divide earned income by the number of months worked to calculate monthly income. Then, multiply monthly income by 12 to calculate the annualise salary.
What is YTD Income?
YTD income, or Year-to-Date income, is another way to describe annualise salary. YTD income refers to the amount of money an individual makes over the course of a year if their pay rate has not been changed. Mortgage brokers use YTD income to gain a better understanding of their client’s financial statuses and determine if the client will be able to manage the required mortgage repayments.