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To annualize your income, you need a sample of the income you earn over a year. You can get this from paystubs, paid invoices, or even your bank statement. If your income is extremely regular, you may not need more than a month of income to complete an annualization. If you receive income from multiple sources, make sure you have information for all sources you want to include. It's easiest to annualize income using months. Add up your income from all sources to get your total income for that period of time. Make a note of how many months of income you used to get that total. For example, suppose you have 3 monthly paychecks of $7,000, $6,500, and $6,800. Your total would be $20,300 of income over a 3-month period. To annualize your income, use the ratio of the number of months in a year (12) over the number of months in the period you used to get your total. When you divide, your result will always be a number greater than 1. For example, if you totaled your income over 3 months, your ratio would be 12/3 = 4. Once you've divided the ratio, multiple the total income you found for the period by that number. The result will be the estimated amount of income you earn in a year. For example, if your total income over a 3-month period was $20,300, your annualized income would be $20,300 x 4 = $81,200.
Gather income reports for 2 or 3 months. Total your income for the period. Divide the number of months in a year by the months of income. Multiply your total income by the result of the ratio.