Mortgage brokers in Norwest, helping the Hills District and Sydney
Free YTD payslip calculator
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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Updated November 2026
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YTD income calculator
Last updated: November 2026
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.
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.
Your annualised income
Annualised base pay
$89,024
$30,000 ÷ 123 days × 365. Over 1 July 2026 to 31 Oct 2026 (123 days).
Lenders usually take annualised base pay in full. Many count only part of overtime and bonuses, or none, unless you have a steady history (often 12 to 24 months) and your employer confirms it is ongoing. Allowances depend on the type. Each lender sets its own rules, so your assessed income could sit anywhere between the base figure and the total.
Figures last checked .
This is an estimate, not financial advice. Results are a guide only. Speak to a broker for accurate figures based on your situation.
Free, no obligation. Your numbers go with your enquiry.
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Got your number?
The calculator gives you the formula result. Sumit checks how each lender will treat your overtime, commission, bonus or business income, and what that means for how much you can borrow. Free, no obligation. We generally respond within an hour.
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Quick answer
A YTD calculator turns the year-to-date gross on your payslip into a full year figure. Divide your YTD earnings by the days since 1 July (or your start date), then multiply by 365. A payslip showing $52,000 after 184 days annualises to $103,152.
The basics
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:
The formula
The standard formula for annualising income from a YTD figure is straightforward:
Annualised Income Formula
Annualised Income = (YTD Earnings ÷ Days Worked) × 365
Step 1
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).
Step 2
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.
Step 3
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
You earn a base salary plus overtime. Your payslip dated 31 December shows YTD gross earnings of $52,000. You 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 your 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.
Worked examples
Three common payslip dates, worked line by line, so you can see where the number comes from. These illustrate the formula; they are not client figures.
Payslip dated 31 December. YTD gross $52,000. Worked the whole financial year, so 184 days have passed since 1 July.
This is the figure a lender would use as the annualised income, a much fairer picture than six months of payslips looked at on their own.
Payslip dated 31 March. YTD gross with this employer $40,000. Count from the start date, not 1 July: 182 days.
Counting from 1 July instead (274 days) would wrongly show about $53,285. Always use your start date if you joined after 1 July.
Payslip dated 30 September. YTD gross $24,500. That is 92 days since 1 July.
A short period swings more on one big pay run, so lenders often check it against your last tax return or employment contract.
Income types
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.
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 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 to 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 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.
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.
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.
No payslip, so no YTD figure. Lenders use your tax returns and business financials instead, and some offer low doc loans when your returns are not lodged yet.
Not sure how your pay will be counted?
Parental leave, a new job, a big overtime year or a business that just had its best year. Tell us how you are paid and we will tell you how each lender will read it.
Free. No obligation and no credit check.
Why it matters
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:
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.
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.
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.
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.
5.0 from 360+ Google reviewsAvoid these
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:
Lenders assess your grossincome, 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.
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.
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.
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.
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.
Using the tool
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.
Use it to
Sound familiar?
The formula is the same for everyone. How lenders read the result is not. Here is what usually gets in the way, and what we do about it.
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Variable and self-employed income
If you earn overtime, commissions or bonuses, good preparation can make a significant difference to how lenders view your application. Practical steps include:
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. Our guide to the self-employed home loan in Australia covers the documents, and our business finance team handles the loans your business needs too.
A self-employed case study
Self-employed scenario
A self-employed couple had an owner-occupied loan of $935K and an investment loan of $665K with a non-bank lender. Another broker had set them up on low doc loans because their tax returns were not ready at the time, so both loans were on high rates.
The interest only change was made on the advice of the clients and their accountant. RyRo does not give tax advice. Speak to your accountant about negative gearing.
Business owners and complex incomes on working with Sumit
Belinda White
2 years ago on Google
Sumit is an outstanding mortgage broker. He patiently worked through our application and got us an awesome result when many other brokers wouldn't assist as we are small business owners. Thank you!
Aisha Khan08
a year ago on Google
Finding the right broker is so important. Sumit Joshi is exceptional in terms of his knowledge about the industry. He was referred to us by a family friend who quoted “he is the best in the business and if he cannot get a loan approved, then nobody else can”. He lived up to the expectations. We were able to secure the property at right time, due to his services. Thank you Sumit for all your hard-work. Will 100% recommend him to anyone looking for a reliable and efficient broker for loan approvals.
Karanpreet Singh
3 years ago on Google
It was such a great experience while working with Sumit. When I contacted Sumit I was very short on time as few other brokers had wasted my time but Sumit assured me that he will get me the approval and he did get me one within the time frame. He is very straight forward and had all the answers for my question whenever I needed. I will definitely work with Sumit in future and will highly recommend Sumit. Thank you Sumit and Team.
Based in the Hills? Our Norwest office sees self-employed tradies, contractors and business owners from Castle Hill to Kellyville every week, so you can meet a mortgage broker in the Hills District who reads business income properly.
FAQ
What YTD means, how the formula works, how lenders treat variable pay and what to bring.
10 answers in 3 topics
What to do next
Once you know your annualised income, see how that translates to a maximum loan amount, or explore how lenders treat different income types.
Free strategy call
We generally respond within an hour. Prefer to pick a time? Book your strategy call online.
Sumit Joshi JP
Principal broker, Credit Rep 446824
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“Sumit and his team helped with our loan approval. They explained each step thoroughly and kept us updated throughout the process. Would highly recommend.”
Sumit Joshi JP, Credit Rep 446824. AFG Award Winner 2013 to 2019 and AFG Excellence Awards finalist 2022 to 2026. Calculator results are estimates. Each lender applies its own income policy.
