YTD & Income AnnualisationCalculator
Convert your year-to-date income into an annualised figure for loan applications. Free YTD calculator for salary, overtime, commission and variable income — results in seconds.
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YTD & Income Annualisation Calculator
Use this YTD calculator to convert your year-to-date income into an annualised figure for home loan and personal loan applications. Whether you earn salary, overtime, commission or bonus income, lenders need an annualised figure to assess your borrowing capacity — and this calculator gives you that number instantly.
Lenders apply their own rules around income shading, averaging periods and documentation requirements. For an assessment tailored to your income profile and multiple lender options, use the form at the top of this page for a free strategy call.
Last updated: April 2026
YTD Income Annualisation Calculator
Convert your year-to-date or variable income into an annualised figure for loan applications. Enter your YTD earnings and number of days worked to get your annualised income instantly.
What does YTD mean — and why does it matter for loan applications?
YTD stands for year-to-date. On your payslip, the YTD figure shows everything you have earned since the start of the financial year — 1 July in Australia — up to the date of that pay run. This includes your base salary, overtime, shift penalties, allowances, commissions and any other taxable payments from your employer.
For loan applications, lenders use your YTD income to calculate an annualised income figure — a projected estimate of what you will earn over a full 12 months if your current earnings continue at the same pace. This is especially important if you:
- Started a new job during the financial year
- Earn variable income such as overtime, commissions or bonuses
- Work casual or part-time hours that change week to week
- Have recently received a pay rise or changed your employment arrangement
Without annualisation, a partial year of payslips would significantly understate your true earning capacity. A mortgage broker uses your YTD income and the formula below to give lenders a fair picture of what you actually earn.
How to annualise income from your payslip — step by step
The standard formula for annualising income from a YTD figure is straightforward:
Annualised Income Formula
Annualised Income = (YTD Earnings ÷ Days Worked) × 365
- 1
Find your YTD earnings on your payslip
Look for the "YTD Gross" or "Year to Date Earnings" field. This is your total gross income since 1 July (or your employment start date if you started after 1 July).
- 2
Count the number of days since 1 July (or your start date)
This is the number of calendar days between 1 July (or your employment start date) and the date of the payslip. For a payslip dated 31 December, that is 184 days from 1 July.
- 3
Apply the formula
Divide your YTD earnings by the number of days, then multiply by 365. This gives you the projected annual equivalent of your current earnings pace.
Example
Sarah earns a base salary plus overtime. Her payslip dated 31 December shows YTD gross earnings of $52,000. She started the financial year on 1 July — so 184 days have elapsed.
($52,000 ÷ 184) × 365 = $103,152 annualised
This is the figure a lender would use as her annualised income — significantly higher than if they only looked at six months of payslips in isolation.
Our YTD income calculator above handles this calculation automatically. You can also use it to check how your annualised income compares to your stated salary, or to model different income scenarios before applying for a loan.
How lenders treat different income types: salary, overtime, commission and bonuses
Not all income is treated equally when lenders assess your loan application. Understanding how each income type is annualised — and what restrictions apply — can help you plan your application more effectively.
Base salary (PAYG)
Your confirmed annual salary is generally accepted at 100% by all lenders. If you have recently started a new job, most lenders will accept your offer letter or contract as evidence of ongoing income. YTD figures are used to verify your salary is being paid as contracted.
Overtime income
Overtime is typically accepted if it is consistent and has been earned for at least 12 months. Most lenders require two years of payslips and will shade overtime at 50–80% of the annualised amount. Some lenders accept 100% of overtime if your employer confirms it is regular and ongoing. Sporadic or seasonal overtime is often excluded entirely.
Commission income
Commission income usually requires a two-year track record. Lenders average commission earnings over 24 months using tax returns and payslips. If commission is growing, some lenders use the most recent 12-month figure. Newly commenced roles with commission components are treated conservatively — often only base salary is assessed until 12 months of commission history is established.
Bonus income
Regular annual bonuses can be included if evidenced over at least two years via tax returns and group certificates. Discretionary or one-off bonuses are generally excluded. To include a bonus, you typically need your most recent payslip showing the bonus paid, two years of tax returns showing the bonus pattern, and confirmation that the bonus is a contractual or recurring component of your package.
Allowances and shift penalties
Shift penalties, tool allowances, car allowances and other regular employer payments can often be included if they appear consistently in your payslips over 12 months. Non-recurring or reimbursement-based allowances are generally excluded. Most lenders will annualise these from YTD figures using the same approach as base salary.
Why mortgage brokers use income annualisation
Income annualisation is one of the most important tools a mortgage broker uses when preparing a loan application for clients with variable or complex income. Here is why it matters:
- It creates a fair comparison. A single payslip from March tells you very little about someone who started work in July. Annualising the YTD figure creates an apples-to-apples comparison with salaried employees whose income can be stated as a fixed annual amount.
- It maximises assessed income. For employees with growing income or recent pay rises, using an annualised YTD figure from recent payslips can be more favourable than averaging over two full years of tax returns. An experienced broker knows which approach each lender prefers — and uses that to your advantage.
- It matches lender requirements. Almost every Australian lender requires a statement of income as an annual figure in loan applications. Presenting correctly annualised income evidence reduces the chance of delays, conditions or declines due to incomplete documentation.
- It supports stronger borrowing power. By correctly capturing all eligible income components — base salary, overtime, commissions, bonuses — a good broker can present the highest defensible income figure to lenders. This directly impacts how much you can borrow for a home loan or personal finance product.
The YTD salary calculator on this page gives you the same annualisation calculation a broker would perform before submitting your application — so you can arrive at a conversation with your broker already knowing your numbers.
Common mistakes when calculating YTD income for a loan
Even small errors in how YTD income is calculated or presented can affect your loan application outcome. Here are the most common mistakes to avoid:
Using net income instead of gross income
Lenders assess your gross income — before tax and before salary sacrifice deductions. Using your net (after-tax) take-home pay will significantly understate your true income and reduce your borrowing power. Always use the "YTD Gross" figure on your payslip, not the amount deposited into your bank account.
Counting days from the wrong start date
If you started your current job after 1 July, the correct start date for annualisation is your employment commencement date — not 1 July. Using 1 July when you only started in October will produce a lower (and incorrect) annualised figure. Most lenders require you to use your actual start date if employed for less than a full financial year.
Including non-recurring payments
One-off termination payments, redundancy payouts, lump sum leave entitlements and other non-recurring items may inflate your YTD figure but will be excluded by lenders. Annualising a YTD figure that includes these can produce an overestimate that lenders will correct — potentially creating problems if you have already made purchasing decisions based on it.
Assuming all lenders will accept annualised YTD income
Some lenders have minimum employment or income history requirements. A lender may require 3 or 6 months of payslips before they will annualise your YTD income rather than requiring two full years of tax returns. Knowing which lenders accept which income evidence — and structuring your application accordingly — is where a mortgage broker adds significant value.
Not accounting for income shading
Even if a lender accepts your overtime or commission income, they may only count a percentage of it — a practice called "shading". For example, a lender might shade overtime at 50%, meaning $20,000 of annualised overtime income is assessed as only $10,000. The borrowing power calculator can help you see how income shading affects your overall borrowing capacity.
How this YTD income calculator works
This income annualisation calculator takes your year-to-date earnings and converts them to an annual equivalent using the standard formula lenders apply when assessing your borrowing capacity. It is suitable for PAYG employees with salary, overtime, commissions, casual income or any other variable pay component.
It mirrors the approach used by lenders in Sydney and across Australia, including for specialist lending scenarios where income documentation is more complex. The result is a guide — lenders apply their own policies around shading percentages, averaging periods and supporting documentation requirements.
- Estimate annual income from seasonal or fluctuating earnings
- See how contract or casual income might look to a lender
- Prepare for conversations about borrowing power and loan options
- Check whether your annualised income matches your stated salary
Putting your variable income in the best light for lenders
If you earn overtime, commissions or bonuses, good preparation can make a significant difference to how lenders view your application. Practical steps include:
- Keeping your financials and tax returns up to date and lodged on time
- Demonstrating a consistent or growing income trend over 12 to 24 months
- Obtaining an employer letter confirming that overtime or commissions are regular and ongoing
- Separating business and personal expenses clearly (for self-employed applicants)
- Working with a broker who understands self-employed, variable and specialist income applications
We can help you understand which lenders are more flexible with contractors, ABN income and variable pay structures, and how to present your income documentation in a way that gives you the best outcome.
YTD calculator FAQs
What does YTD mean on my payslip?
YTD stands for year-to-date. On your payslip, the YTD figure shows how much you have earned from the start of the financial year (1 July in Australia) up to the date of that payslip. It includes your base salary, overtime, allowances, commissions and other payments made by your employer during that period. Lenders use this figure, along with the number of days worked, to calculate an annualised income for your loan application.
How do I calculate my annual income from YTD figures?
To annualise income from a payslip, divide your YTD earnings by the number of days since 1 July, then multiply by 365. For example, if your YTD income is $45,000 after 180 days, your annualised income is ($45,000 ÷ 180) × 365 = $91,250. Our YTD calculator does this automatically — just enter your YTD figure and the number of days worked in the current financial year.
Why do lenders annualise income for loan applications?
Lenders annualise income to estimate what you will earn over a full year, even when you only have a partial year of payslips. This is common for people who started a new job mid-year, have variable income, earn overtime or commissions, or are paid irregularly. Annualising creates a consistent income figure that lenders can use to assess your ability to repay the loan over its full term.
What if I started my job mid-year?
If you started a new job mid-year, lenders will typically annualise your YTD income from your start date rather than from 1 July. Most lenders require at least 3 months of employment history in the same role or industry to use annualised income. If you recently changed employers, some lenders may use your confirmed annual salary from your contract or letter of offer instead. A mortgage broker can advise which approach gives you the strongest application.
Does overtime count in YTD income calculations?
It depends on the lender. Many lenders will include overtime if it appears consistently in your payslips over 12 to 24 months and your employer confirms it is likely to continue. If your overtime is irregular or you have only recently started earning it, some lenders will shade it (typically at 50–80%) or exclude it entirely. For loan applications, it helps to have payslips showing a consistent overtime pattern and a letter from your employer confirming it is regular and ongoing.
How is commission income treated by lenders?
Commission income is generally included by lenders if you can demonstrate a consistent track record — usually two years. Most lenders average your commission over 24 months using tax returns or group certificates, then add it to your base salary to arrive at your total assessable income. If your commission is growing, some lenders will use the most recent 12-month figure instead of the two-year average. Newly commenced commission roles are treated more conservatively.
Can bonuses be included in my income for a home loan?
Yes, in many cases. Most lenders will include regular bonuses if you can show they have been paid consistently over at least two years. They typically require evidence via tax returns, group certificates and payslips. Discretionary or one-off bonuses are generally excluded or heavily shaded. The key is demonstrating that the bonus is a reliable, recurring component of your remuneration package.
What's the difference between annualised income and base salary?
Your base salary is the fixed amount your employer pays you, usually expressed as an annual figure. Annualised income is a calculated estimate of your total earnings over a year — it includes base salary plus any variable components such as overtime, shift penalties, commissions, bonuses and allowances, projected forward from your current YTD earnings. For loan applications, lenders assess your annualised income rather than just your base salary, which can result in a higher or lower figure depending on your pay structure.
Do all lenders annualise income the same way?
No. Each lender has its own income assessment policy. Some use the lower of two years of tax returns, others average the last two years, and some will accept the most recent 12 months or current YTD figure annualised. Non-bank lenders often have more flexibility than major banks for variable income applicants. A mortgage broker with access to multiple lenders can match your income profile to the policy that gives you the best result.
What documents do lenders need to verify annualised income?
For PAYG employees, most lenders require your two most recent payslips and the latest group certificate or tax return. Some will also request an employment letter confirming your role, salary and start date. For variable income components like overtime, commissions and bonuses, lenders typically want 12 to 24 months of payslips plus tax returns showing a consistent history. Self-employed applicants generally need two years of tax returns, business financials and potentially BAS statements.
Got questions or need help? Book a free call with us.
What to do next
Once you know your annualised income, use our borrowing power calculator to see how that translates to a maximum loan amount, or explore our home loans overview and specialist lending to understand how lenders treat different income types.
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