1. If you don’t know your monthly net income, start with your gross salary or gross hourly wage (most likely your employer told you gross not net) and calculate your monthly gross income.
2. If you only know your annual salary, divide it 12. Say my gross salary is $30,000 a year. I’d divide it by 12 to get my gross monthly income of $2,500. If you only know your hourly wage, times it by the amount of hours you work every month. If I make $15.62 an hour and I work 160 hours a month, my gross income is $2,500.
3. Then subtract 15% from it. Here’s how you find out what 15% of your gross monthly income is:
a)Multiply whatever your gross monthly income is by .15. (In my example, 2,500 X .15= 375, so 375 is 15% of $2,500.)
b)Then subtract the answer from your gross monthly income. (In my example, I subtract 375 from 2,500 to get $2,125, and I’d use that as my net monthly income for my quick draft monthly net income.)
I used 15% as the amount I’d be taxed, which is a very rough estimate. Your actual tax will vary depending on the tax laws in your state, among other factors.
It’s important to note that you want to eventually make sure your income amount is accurate. That will let you know how much you have to work with. If you are working with a wrong number, it can hurt the effectiveness of yo
QUICK DRAFT MONTHLY NET INCOME: $ *