How to Calculate My Monthly Income

Calculate your total monthly income from various sources.

Your Income Sources

Understanding Your Monthly Income

Calculating your total monthly income is a fundamental step in personal finance management. It provides a clear picture of the money you have available to cover expenses, save, and invest. Your monthly income is typically the sum of all the money you receive from various sources on a regular, monthly basis.

How to Calculate Your Monthly Income

The calculation is straightforward: you add up all the income you expect to receive within a given month. Here are the common components:

• Monthly Salary/Wages: This is your regular pay from your primary job after taxes and deductions (often referred to as net pay or take-home pay if you're calculating what you actually receive). If you're using gross pay, ensure consistency across all income sources. For this calculator, we assume you're inputting the amount you receive.
• Freelance/Gig Income: Income earned from part-time jobs, contract work, or gig economy platforms. This can be variable, so it's often best to use an average of recent months or a conservative estimate.
• Rental Income: Money received from renting out properties. This is typically the amount collected from tenants after deducting any direct property expenses like mortgage payments for that specific property, property taxes, and insurance. If you're just calculating gross income, input the total rent collected.
• Investment Income: This includes dividends from stocks, interest from bonds or savings accounts, and any other regular payouts from your investments.
• Other Income: This is a catch-all for any other recurring income not covered above, such as regular gifts, alimony, child support, or income from royalties.

The Formula

The formula used by this calculator is:

Total Monthly Income = (Monthly Salary/Wages) + (Monthly Freelance/Gig Income) + (Monthly Rental Income) + (Monthly Investment Income) + (Other Monthly Income)

Why is This Important?

Knowing your total monthly income is crucial for:

• Budgeting: It forms the basis of your budget, allowing you to allocate funds effectively.
• Financial Planning: It helps in setting realistic financial goals, such as saving for a down payment or planning for retirement.
• Loan Applications: Lenders often require proof of income to assess your ability to repay loans.
• Tracking Financial Health: Consistently tracking your income helps you identify trends and opportunities for increasing your earnings or managing your money better.

Use this calculator regularly to stay on top of your financial inflows and make informed decisions about your money.