Quickly, how would you would answer this question: “What’s your
income?” Did you think about the amount of your payday deposit?
Did you think about the amount on your income tax return for the
year? One is your net income and the other is your gross income.
Everyone should understand the difference between gross and net
income and why both numbers are important in your financial
life. Let’s review some of the common factors that go into
calculating your gross and your net income – both monthly and
annually. Monthly Gross Income vs. Net Income Your monthly gross
income is what you earn at your job before any deductions. You
can find your gross income on your pay stub. From this number,
multiply by the number of pay periods per year and divide by 12
to get your average monthly gross income from that job. Your
monthly net income is your take-home pay – whether you receive a
check or have direct deposit set up with your bank account. To
calculate your monthly net income, multiply your take-home pay
by the number