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Income Annualisation Calculator

Work out your annual income based on current pay to date with this free income annualisation calculator from Savvy

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, updated on July 28th, 2023       

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Find out how much you’ll earn annually with this handy calculator

You may need to find out what your equivalent annual income is for a loan application or when you’re filling in your tax return.   You may even need to project your income over a financial year to work out how much you may earn in the future.  That’s where Savvy’s handy income annualisation calculator can help you work out this figure quickly and eas

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Income annualisation explained

How do I use the income annualisation calculator?

It’s quite simple to use the income annualisation calculator to tell you what your annual income will be based on pay to date.  Just enter in the start date of the financial year and the end date of your latest pay period.

Next, enter your year-to-date income and then click anywhere on the income annualisation calculator page to view your results.

The calculator will tell you the number of days you’ve been paid so far, the number of unpaid days and your annualised income based on your payments so far this year. 

Note that the calculator doesn’t include any income tax provision, so if you input either gross (before tax) or net (after tax) pay, the results will reflect that tax status.

What are annualised salaries?

An annualised salary is a fixed annual wage which does not include additional award entitlements (which former awards may have included).  New employment awards introduced by the Fair Work Commission, which came into effect on 1 March 2020, made annualised salary arrangements far more common in Australia.

Annualised salaries are designed to simplify employment record-keeping for employers, as they do away with multiple provisions from other employment awards.  For example, if an employee is covered by the Pharmacy Award and has an annualised salary arrangement with their employer, they may receive a simple annualised salary which replaces:

  • legal minimum wage
  • allowances (such as meal allowance and laundry allowance)
  • overtime rates
  • penalty rates
  • holiday leave loading

This means the employer does not have multiple allowances and rates to calculate, but can just pay the annualised salary as agreed.

When might I need to quote my annualised salary?

Hundreds of thousands of Australians are covered by annualised salary awards or now work in the gig economy, which means they earn their living by carrying out multiple small jobs on a per-job or per-hour basis.  If you are one of these workers, you may need to quote your annual salary when applying for a home loan, a car loan or a personal loan

The definition of gig economy is ‘task-based employment’ and examples of gig industries include take-away food delivery, on-demand delivery, couriers and some taxi drivers.  Freelance workers and hourly casual workers are also often paid on a per-hour basis, as opposed to a set salary or wage.  Because of this, they may find it more difficult to get approved for financing or provide an accurate indication of their annual salary, as it may fluctuate or may simply be midway through the year before they have a clear grasp on their overall salary. 

You can use this handy income annualisation calculator to provide you with your estimated annual salary based on the pay you’ve received for the number of days you’ve worked in the current financial year.  This can assist you when filling in your loan application (if you’re asked to provide your annual income).

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