YTD Calculator will help you work out your annualised salary from the income you have earned in a portion of the year.
In other words, Year to Date (YTD) income represents what you should earn over the course of 12 months.
Most banks and lenders will use a Year to Date calculator to work out the income figure to use on your home loan application, and in a lot of cases, the banks will use the lower figure of your YTD income, and your group certificate.
(Don’t worry this isn’t ALWAYS the case, we have some lenders who will use the HIGHER figure)
The higher your income, the more a bank is going to be comfortable to lend you a higher loan amount.
- YTD Calculator
- How do I use the YTD calculator?
- How to calculate YTD income on a new job?
- How to calculate YTD income for a casual worker?
- How to calculate YTD commission income?
- How will a bank look at my income?
How do I use the YTD calculator?
Using the Year to Date income calculator is fairly simple if you follow these steps:
- ✅ Get a copy of your most recent payslip
- ✅ Enter the date when you started your job if you aren’t sure of the exact date just put the approximate month and year.
- ✅ Enter the end date from your most recent payslip, if the pay period was 01/03/2019 to 31/03/2019 then you enter 31/03/2019 into the calculator.
- ✅ Enter the YTD gross income from your most recent payslip.
- ✅ Press calculate on the calculator to calculate your yearly gross income.
If you have any questions on the calculator please contact our team with an online enquiry, or give us a call on 1300 088 065.
Here is an example of using the YTD calculator
We’ve also included a salary payslip to show you where the information comes in this example:
- ✅ 1. Enter the date when you started your job: 02/08/2018
- ✅ 2. Enter the end date from your most recent payslip: 31/01/2019
- ✅ 3. Enter the YTD gross income from your most recent payslip: $36,529
- ✅ 4. Press calculate on the calculator to calculate your yearly gross: $74,904.97 per year!
Why does it need to include the start date?
The year to date income is calculated by financial year, which in Australia begins on the 1st of July of each year.
Our calculator looks at the months you have worked in the current finish year and annualises this to get the yearly figure.
So if you have only just started the job, and only worked 2 of the 12 months in the financial year having your start date in the calculator will make sure the correct figure is calculated.
How to calculate YTD income on a new job?
If you have started a new job in the middle of a financial year you might have noticed your year to date income figure might look a little low.
Don’t worry, that’s to be expected – which is why some banks use the YTD calc to see what your annual salary will be at the end of the year.
For example, if you started a job in February 2019 and the year to date figure on your payslip is $5,000.
This doesn’t mean you only earned $5,000 this year but using the YTD calculator you can annualise your salary to $31,465 which the bank can use to understand how much you will make this year.
How to calculate YTD income for a casual worker?
Another scenario where a bank may rely on the YTD income is for a casual worker. That is because your income might be higher one week, and lower the next week meaning it can look inconsistent.
The YTD calc will annualise your income to understand how much you will be making in that year.
Keep in mind, if you are a casual worker most banks will need you to be in the job for at least 6 to 12 months. A lot of lenders will decline home loans for casual workers because they prefer consistent hours but we work with several banks that have flexible policies for casual employees.
Please call us on 1300 088 065 or fill in our free assessment form, and one of our mortgage brokers will give you a call to discuss your situation.
How to calculate YTD commission income?
What about if you earn commission income, will the banks consider it when assessing your application?
The good news is yes, the banks will consider different forms of commission income provided you have been getting paid it regularly over the past few years.
Most banks will let you use all of your commission income towards your loan application if you have at 20% deposit.
If you have less than a 20% deposit there are also options which we can discuss with you, get in touch with our mortgage brokers on 1300 088 065 or fill in our free assessment form,
How will a bank look at my income?
Do you realise that only a handful of banks will use 100% of your extra income like overtime, shift allowances, bonuses, casual income and maternity leave income?
Our team at Hunter Galloway can help you gain a detailed understanding of YTD income and will help you find the right lender.
Chat with us now on 1300 088 065 or get in touch with our team for a free assessment.
Ready to take the next step toward buying? We’re happy to help. Schedule a call today with a Home Loan Expert from Hunter Galloway, the home of home buyers.