Standard Employment Income
Salaried and hourly W-2 borrowers, calculated cleanly — base pay, overtime, and continuance, all in one pass.
Wage-earner income looks simple until overtime, shift differentials, and partial pay periods enter the picture. The right monthly figure depends on whether the borrower is salaried or hourly, how consistent their hours are, and whether variable components are likely to continue.
IncomeCalculator.com reads pay stubs and W-2s, reconciles year-to-date earnings against prior years, and separates stable base pay from variable add-ons so the qualifying income reflects what an underwriter would actually use.
What to upload
- Recent pay stubs covering at least 30 days
- W-2s — typically the most recent two years
- A written or verbal verification of employment, when required
- An offer letter for borrowers starting new salaried roles
How the calculation works
Classify base pay
The assistant determines salaried vs. hourly status and calculates a consistent monthly base from the pay frequency.
Reconcile year-to-date
Year-to-date earnings are checked against prior W-2s to confirm the run rate and catch raises, gaps, or one-time items.
Separate variable pay
Overtime and differentials are evaluated separately for continuance, rather than being baked into base pay.
Supported programs
Conventional, FHA, VA, and Non-QM. The same wage analysis supports purchase and refinance scenarios.
Common questions
How is hourly income annualized?
The assistant uses verified hours and rate, validated against year-to-date and prior-year earnings, rather than assuming a flat 40-hour week.
Is overtime always counted?
Only when it shows a consistent two-year history and a reasonable expectation of continuance. Otherwise it is excluded or noted.
Can it handle a recent raise?
Yes. A documented raise can be used going forward, with the assistant explaining how it weighed current vs. historical pay.