Net monthly income refers to the paycheck employees receive from their employers. Employers deduct taxes and Social Security contributions before creating checks for their employees.Know More
Employees who work multiple jobs get multiple paychecks. In order to determine their net monthly income, they must add the net income from both checks together.
A person who is not an employee has a much harder time determining his net monthly income. When clients make payments to him, the deductions have yet to be processed. Instead of net monthly income, the checks received from his clients reflect gross income. After filing quarterly taxes, the person can then estimate his net monthly income by utilizing the financial documents submitted to the Internal Revenue Service.Learn More
Gross income is the income of an individual or business before payroll taxes are deducted. A typical employer deducts an employee's federal, state and local tax amounts from gross income, which leaves net income as the take-home pay amount.Full Answer >
Investopedia defines household income as the combined total incomes of all those sharing a residence who are over the age of 15. The household income level is generally used for financing decisions.Full Answer >
Per capita income is calculated by dividing the total income of all people 15 years old and older by the total population. The data used to calculate per capita income comes from the American Community Survey, an annual survey carried out by the U.S. Census Bureau.Full Answer >
To convert APR to a monthly interest rate, divide the total APR percentage by 12, according to Mark Kennan. As Investopedia explains, APR is the annual percentage rate on a loan and does not take into account compounding interest.Full Answer >