Definition of annual income?

Annual income refers to the total amount of money earned by an individual or household over the course of a year from various sources such as wages, salaries, investments, and other forms of income. It is typically used as a measure of financial stability and is often used by lenders, landlords, and other entities to assess an individual's ability to repay debts or afford certain expenses.

Annual income refers to the total amount of money an individual or business earns over a period of one year. It is the summation of all income sources, including wages, salaries, bonuses, commissions, investments, rental income, and other earnings. It is commonly calculated by adding up all income earned during the year and dividing it by the total number of years. Annual income is a fundamental financial metric used for various purposes, including tax calculations, credit applications, budgeting, and measuring economic well-being.