Your Progress 0%

📊 Understanding YTD Earnings

Year-to-Date (YTD) earnings show your cumulative gross income from the start of the financial year to a specific date. Understanding YTD helps you track income progress, project annual earnings, plan taxes, and make informed financial decisions throughout the year.

Key Point: YTD earnings are your total gross income (before tax) from 1 April to the current date. In NZ, the financial year runs 1 April to 31 March. If it's 1 October and your YTD is $30,000, you've earned half your annual income in 6 months. Projecting forward helps estimate final annual income for budgeting and tax planning.

NZ Financial Year Basics

Period Dates Purpose
Financial Year 1 April - 31 March Tax year, IRD reporting
Calendar Year 1 January - 31 December General business, planning
YTD Period 1 April - Current Date Cumulative earnings tracking

What YTD Shows

Example: It's 1 October 2024

Current financial year: 2024/25 (started 1 April 2024)
Days elapsed: 183 days (1 April to 1 October)
Days in year: 365 days
Year progress: 183 ÷ 365 = 50.1%
YTD gross earnings: $32,000
Projected annual: $32,000 ÷ 50.1% = $63,873

Why YTD Matters

1. Income Projection:

Estimate full-year earnings to plan major purchases, savings goals, or budget adjustments.

2. Tax Planning:

Mid-year YTD: $45,000
Projected annual: $90,000
Expected tax: ~$21,000
Can plan voluntary KiwiSaver or donations to manage tax

3. Bonus/Commission Tracking:

Sales roles can track if hitting annual targets based on YTD progress.

4. Job Comparison:

When changing jobs mid-year, YTD helps calculate true annual income across both roles.

5. Loan Applications:

Banks want annual income. YTD helps estimate if starting new job or variable income.

Reading Your Payslip YTD

Typical NZ payslip YTD section:

Item This Pay YTD
Gross Earnings $2,500 $32,500
PAYE $485 $6,305
KiwiSaver $75 $975
Student Loan $180 $2,340
Net Pay $1,760 $22,880

Key insight: YTD gross $32,500 means total earned since 1 April. Use this to project annual income.

Calculating Annual Projection

Method 1: Days Elapsed (Most Accurate)

Formula: YTD ÷ (Days Elapsed ÷ Days in Year)
Example: 1 July payslip
Financial year: 1 April 2024 to 31 March 2025
Days elapsed: 91 days (1 April to 1 July)
Days in year: 365
YTD gross: $18,000
Calculation: $18,000 ÷ (91 ÷ 365)
$18,000 ÷ 0.249 = $72,289
Projected annual: $72,289

Method 2: Simple Monthly (Quick Estimate)

Current month: October (month 7 of financial year)
YTD: $35,000
Projected: ($35,000 ÷ 7) × 12
= $60,000 annual

Note: Less accurate if income varies or started mid-month.

Different Income Patterns

Stable Salary:

Salary: $60,000/year = $5,000/month
6 months YTD: $30,000
Projected: $60,000 (matches salary)

Variable Income (Commission):

Base + commission varies monthly
8 months YTD: $58,000
Projected: ($58,000 ÷ 8) × 12 = $87,000
But: Q4 often higher sales, adjust accordingly

Started Mid-Year:

Started 1 August, now 1 December (4 months)
YTD: $20,000
Projected from start date: ($20,000 ÷ 4) × 12 = $60,000
But FY year projection: $20,000 ÷ (122 ÷ 365) = $59,836
💡 Leap Year Impact

Leap years have 366 days. Financial year 2023/24 (1 April 2023 to 31 March 2024) includes 29 Feb, so has 366 days. Use 366 in calculations for accurate projections. The extra day slightly reduces projected annual income.

Common YTD Uses

Mortgage Application:

Bank asks for annual income. Started new job 5 months ago:

YTD: $35,000 (5 months)
Projected annual: $84,000
Provide: Latest payslip + YTD projection

Tax Return Planning:

November YTD: $52,000
Projected: $75,000
Expected tax bracket: 33%
Can plan: Extra KiwiSaver, donations, rental losses

Budget Adjustment:

Expected annual: $70,000
November YTD projection: $62,000
Shortfall: $8,000
Action: Reduce discretionary spending, no bonus this year
⚠️ YTD Projection Limitations

Not accurate for: Highly seasonal income (retail Christmas), irregular bonuses, recent salary changes, part-year employment
Assumes: Income continues at same rate for rest of year
Better to: Adjust projection if you know about upcoming changes (raise, bonus, redundancy)

🔢 YTD Calculations

Example 1: Standard Salary Worker

Payslip date: 15 September 2024

Financial Year Info:

FY: 2024/25 (1 April 2024 to 31 March 2025)
Days in FY: 365
Days elapsed (1 April to 15 Sept): 167 days
Percentage elapsed: 167 ÷ 365 = 45.8%

YTD Calculation:

YTD gross earnings: $28,750
Projected annual: $28,750 ÷ 0.458
= $62,773

Verification (Known Salary):

Actual salary: $62,000/year
Expected YTD: $62,000 × 0.458 = $28,396
Actual YTD: $28,750
Difference: $354 (likely overtime or bonus)

Example 2: Commission Sales Role

Payslip date: 1 November 2024 (7 months into FY)

Days elapsed: 214 days (58.6% of year)
YTD gross: $65,000
Projected: $65,000 ÷ 0.586 = $110,922

Seasonal Adjustment:

Historical data: Q4 (Jan-Mar) = 35% of annual sales
Current YTD through Q1-Q3: $65,000
Expected Q4: $65,000 × (35% ÷ 65%) = $35,000
Adjusted projection: $65,000 + $35,000 = $100,000

Example 3: Mid-Year Job Change

Scenario: Changed jobs on 1 September

Old Job (1 April to 31 August):

Period: 153 days
Earnings: $22,000

New Job (1 September onwards):

Now: 1 December (3 months at new job)
Days in new job: 91 days
YTD at new job: $18,000

Combined FY Income:

Total YTD: $22,000 + $18,000 = $40,000
Days elapsed in FY: 244 days (66.8%)
Simple projection: $40,000 ÷ 0.668 = $59,880

More Accurate (New Job Rate):

Old job: $22,000 (complete)
New job rate: $18,000 ÷ 91 days = $197.80/day
Remaining FY days: 121 days
Projected new job: $18,000 + (121 × $197.80) = $41,934
Total FY: $22,000 + $41,934 = $63,934

Example 4: Part-Year Worker

Started 1 October, now 1 February (4 months worked)

YTD: $16,000
Days worked: 122 days
Days in FY: 365
FY projection: $16,000 ÷ (122 ÷ 365) = $47,869

But Only Working 7 Months Total:

Actual FY earnings will be: ($16,000 ÷ 4) × 7 = $28,000
Full-year equivalent: ($16,000 ÷ 4) × 12 = $48,000

Example 5: Salary Increase Mid-Year

Raise effective 1 October

Before Raise (April-September):

Old salary: $55,000/year
6 months earned: $27,500

After Raise (October-March):

New salary: $62,000/year
6 months to earn: $31,000

Total FY Projection:

April-Sept: $27,500
Oct-March: $31,000
FY total: $58,500

Current YTD Check (1 December):

April-Sept (6 months old rate): $27,500
Oct-Dec (3 months new rate): $15,500
YTD: $43,000
Simple projection: $43,000 ÷ 0.668 = $64,371 (inaccurate!)
Accurate: $43,000 + 3 months remaining at new rate = $58,500

Leap Year Adjustment

FY 2023/24 (includes 29 Feb 2024)

Days in FY: 366 (leap year)
1 January 2024 (9 months, 275 days elapsed)
YTD: $52,000
Projection: $52,000 ÷ (275 ÷ 366)
= $69,167

If incorrectly used 365 days: $52,000 ÷ (275 ÷ 365) = $69,018 (slightly off)

🌍 Real-World YTD Scenarios

1
Mortgage Application Mid-Year

Applying for home loan in November, started new job in June:

Situation:

New job start: 1 June 2024
Current date: 15 November 2024
Time in role: 5.5 months
YTD (from 1 April): $48,000

Bank Requirement:

Need to prove annual income capacity for lending assessment.

Calculation:

Days in new job: 167 days (1 June to 15 Nov)
New job YTD: $42,000 (extract from total YTD)
Daily rate: $42,000 ÷ 167 = $251.50
Annual projection: $251.50 × 365 = $91,798

Documentation:

  • Latest payslip showing YTD
  • Employment contract showing annual salary
  • Calculation showing $92,000 annual capacity
  • Bank approves based on $92,000 income
2
Sales Rep Commission Tracking

Tracking progress toward annual quota:

Annual Target:

Base salary: $50,000
Target commission: $30,000
OTE (On-Target Earnings): $80,000

Mid-Year Check (1 October):

6 months elapsed (50% of year)
YTD total: $38,000
YTD base: $25,000
YTD commission: $13,000

Projection:

On-track commission: $13,000 × 2 = $26,000
Target commission: $30,000
Gap: $4,000 (13% behind target)
Action: Increase activity in Q3/Q4 to close gap
3
Tax Planning with Rental Income

Using YTD to plan year-end tax position:

November YTD Check:

Employment YTD: $68,000
Projected annual salary: $82,000
Rental income to date: $15,000
Rental expenses to date: $8,000
Net rental: $7,000

Year-End Projection:

Salary: $82,000
Rental net (projected): $10,000
Total taxable: $92,000
Tax bracket: 33%

Planning Action:

Increase KiwiSaver to 8% (extra $3,280/year)
Make $2,000 charitable donation
Both reduce taxable income and provide tax credits
4
Redundancy Income Planning

Made redundant in January, planning finances:

Redundancy Details:

Finished: 31 January 2025
YTD to redundancy: $55,000
Redundancy payment: $25,000

Tax Implications:

Redundancy first $29,560: Tax-free
Taxable redundancy: $0 (under threshold)
FY income: $55,000 + $0 = $55,000
Expected tax: $9,520

Financial Planning:

Cash available: $25,000 (tax-free redundancy)
Months to find new job: 2-3 months budget
Monthly expenses: $4,500
Runway: 5.5 months covered

🎯 Test Your Knowledge

Quiz on YTD Earnings

1. NZ financial year runs:
1 January to 31 December
1 April to 31 March
1 July to 30 June
1 March to 28 February
2. It's 1 October (6 months into FY), YTD is $30,000. Projected annual:
$30,000
$60,000
$45,000
$90,000
3. YTD shows:
Net income after tax
Gross income before tax from 1 April
Total lifetime earnings
Last month's pay only
4. 150 days into 365-day FY, YTD $25,000. Projected annual:
$50,000
$60,833
$25,000
$75,000
5. YTD projection is LEAST accurate for:
Fixed salary worker
Seasonal retail worker (Christmas busy period)
Government employee
Teacher on salary
6. Leap years have how many days?
365
366
364
367
7. Changed jobs mid-year. Best projection method:
Use total YTD only
Calculate old job + project new job rate separately
Wait until year-end
Use old job rate for whole year
8. YTD is most useful for:
Historical analysis only
Projecting annual income and tax planning
Calculating superannuation
Setting interest rates
9. Salary increased mid-year. Simple YTD projection will:
Be perfectly accurate
Overestimate annual income
Underestimate annual income
Not work at all
10. Banks use YTD for:
Setting deposit interest rates
Assessing income capacity for lending
Calculating fees
Determining account type

🧮 Try YTD Calculator

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