Home
What Is Annual Income?
An explanation of gross annual earnings, examples, and common misconceptions.
Annual income definition
Annual income is the total income earned over a year. Gross annual income refers to earnings before taxes and deductions; net annual income refers to amounts after deductions and taxes.
How to calculate annual pay from hourly wages
Multiply your hourly rate by hours worked per week and the number of paid weeks per year. For example, $25 × 40 × 52 = $52,000 gross per year.
When annual income differs
Part-time schedules, unpaid time off, overtime, bonuses and multiple jobs change actual annual earnings.
Gross income versus take-home pay
A paycheck after tax can be lower than gross annual income. Gross pay conversion tools do not calculate taxes or withholding.