Definition of 'Annualized Income'
A way of calculating what your yearly income would be, based on your income for a specific period. It is calculated by dividing 12 by the number of months in the period, and multiplying that by your income for the period. For example, if you made $50,000 in 5 months and wanted to know what you would make for the year (at that rate), you multiply $50,000 by 2.4 (12/5 = 2.4) and you find out that you would make $120,000