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annualized income

An estimated amount of earnings calculated from less than a whole year. Usually income disclosure statements multiply the monthly average by twelve to get the annualized income.

In income disclosure statements this generally overestimates earnings by a lot.

also called: annualized income, average annual income

Annualized income is an estimate of the sum of money that an individual or a business generates over a year’s time. Annualized income is calculated with less than one year’s worth of data, so it is only an approximation of total income for the year.

“Annualized Income” Investopia.com

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