Monthly Gross Calculation

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  • #65559

    I have a question:

    What is the standard way NACA calculates monthly gross income?

    Say an individual makes 3,000 gross every two weeks:

    Does NACA calculate monthly income as:

    1) $3,000 x 2 = $6,000 per month. Since most months you’ll get 2 checks


    2) $3,000 x 26 = $78,000 per year; $78,000/ 12 = $6,500 per month



    Biweekly: pay stub x 26 / 12

    Weekly: pay stub x 52 / 12

    I have seen reports of some MCs be lazy and use the 4 week month rule which works out to a 48 week year. If you can afford it that will only help you out and build in extra savings. I can tell you that my monthly piti and income was calculated by my MC on a 26 pay, 52 week year.

    • This reply was modified 6 months ago by Nelsont.

    Oh….because mine wasn’t. 🙁

    My MC used just 2 checks and claimed that NACA prefer to go with the lowest number to be safe. It’s a difference of nearly $200 in my PITI.

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