There are many ways you use to can determine your monthly income. For some people it is easier than others. For example, if you are a salaried worker just take your paycheck and multiply by the number of time you are paid a month. If you are paid $2500 twice a month, simply multiply by 2 and you have your monthly income of $5000.

If you are an hourly worker it is also easy to determine your total monthly income. Simply take your hourly rate of pay, multiply it by the number of hours you work a week, then multiply it by 52 weeks in a year, then divide by 12 months and you now have your monthly income.

However, determining your monthly income is not as easy if you are paid by commission, given bonuses, or paid overtime. Lenders usually average all your sources of income over a two month period to determine your monthly income. A simple way to figure it out is to get your W2 forms from the two previous years add them together and divide by 24 months. This will give you a very good estimation of your total monthly income.

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