Generally, we consider net income when working on a budget.

• Net income, or take-home pay, is the amount of money you actually receive in your paycheck after taxes and any other deductions (such as Social Security, health care and Medicare) are subtracted from your paycheck
• Other income that may factor into your budget includes interest from a savings account, cash gifts, tips, bonuses and child support

How to Calculate Your Net Monthly Income

Simply apply the following formula, depending on how often you are paid:

• If weekly, multiply your take-home pay by 52 and divide by 12
• If bi-weekly, multiply your take-home pay by 26 and divide by 12
• If semi-monthly, multiply your take-home pay by 2