Annualise the year-to-date figure on your payslip and see how much of your income is variable.
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Divide the year-to-date gross by the weeks it covers and multiply by 52. That is your annualised income, including overtime and penalties, and it is often well above your base salary.
Lenders differ on how much of the variable part they count, so the calculator also shows that share.
Part of the employment and income home loans guide.
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A period containing a large one-off payment inflates the figure. A period containing unpaid leave deflates it. A pay rise partway through means the earlier weeks understate your current rate.
None of these make the calculation useless; they mean the number should be sanity-checked against your payslips rather than taken as gospel, which is exactly what a lender will do.
Most will not just use your annualised figure. They will look at two years of payslips and PAYG summaries, average the variable components over one or two years, and apply their own percentage.
The annualised number tells you what is at stake; the overtime guide explains how much of it different lenders keep.
The total you have been paid since the start of the Australian financial year on 1 July, before tax.
It accumulates with each pay period, so a payslip in December covers roughly half a year and one in June covers close to a full year. The later in the year it is, the more reliable annualising becomes.
Not directly. Lenders typically want two years of payslips and PAYG summaries, then apply their own treatment: averaging the variable components over one or two years and counting a percentage of them. Your annualised figure is useful for understanding what is at stake rather than predicting what they will approve.
Because your salary is your base and your payslip records everything you were paid: overtime, shift penalties, allowances, commission and any bonus. For anyone in a rostered role that difference is often substantial, and it is the part lenders treat most differently from one another.
Yes, considerably, particularly early in the financial year when it is spread across fewer weeks. If a large one-off payment sits inside the period, annualising will overstate your ongoing income. Lenders adjust for exactly this, which is why they average over longer periods.
For budgeting, the conservative one. For understanding your options, both: the annualised figure shows your real earnings, and the gap to your base shows how much depends on lender choice. Planning on the conservative figure and being pleasantly surprised is a better position than the reverse.
The gap between your year-to-date figure and your base pay is the difference between lenders. Charles can tell you which ones count most of it.
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Estimates only, not credit or financial advice. This tool uses general assumptions and cannot see your credit file, verify your income or apply any particular lender's policy. Your position is confirmed in a full assessment.
