What is a Year To Date Calculator?

A Year To Date Calculator or YTD Calculator is a tool used by lenders to work out your annual income from the income that you earned in part of a year. The lender can use either the YTD gross income figure from your most recent payslip or the gross income stated in your last group certificate.

In most, but not all cases, the banks will calculate your income from both your payslip and group certificate and will use the lower of the two incomes in their assessment.

How do I use the calculator?

Follow the steps below to use the calculator:

1. Find your most recent payslip & your group certificate from the most recent financial year.
2. Enter the data from these documents into the calculator.
3. The “End date of most recent payslip” refers to the end of the pay period, not the date you were paid. For example, if the pay period was the 06/06/2010 to 12/06/2010 and the pay date was 15/06/2010, you would enter 12/06/2010 in the calculator.
4. If you have only just started your job this financial year, or do not want to work out your income from your group certificate then just enter 0 as the “Gross income shown on your last group certificate”
5. Click calculate and the calculator will then work out your annual gross income.
6. You can now deduct your base pay from this figure to work out the amount you receive each year in overtime, pre-tax allowances and other income types.

If you have any questions about how to use the calculator then please post a question on our home loan forum.

How is YTD calculated from July to September?

The financial year begins in July and so most payslips have their YTD figure reset on the 1st of July each year. Normally the YTD income contains several months income in it, however in July, August and September it doesn’t.

As a result of this the lenders cannot determine your annual income using the YTD income shown on your payslips alone. A small amount of time off of work or a few extra days of overtime would greatly effect their calculation of your annual income.

So some lenders will ask for your group certificate from the previous financial year and use this to calculate your income. Group certificates will show a full years income if you have worked there for the entire financial year, or will record the date that you started with that employer which can then be used to calculate your YTD income.

How will the lenders assess my income?

Did you know that not every lender will use 100% of your overtime, shift allowances, bonuses and other income types in their assessment? Some lenders are also very conservative when assessing the income of casual employees.

Our mortgage brokers are experts in helping people with these income types to get approval for a home loan. Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will call you to discuss your situation.