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Methodology

Multiple Income Stream Pay methodology

Annualize two to eight user-entered income streams on one work-value basis.
Duc Nguyen X.By Duc Nguyen X.· Founder, Wage101Last reviewed: View update historyMethodology

Educational only: Work and pay decision support, not tax, legal, financial or career advice.

Privacy: Calculations run locally; Wage101 does not receive your work or pay inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral work and pay planning using your own assumptions.

1. Formulas and units

Annual net work value
netWorkValue = totalGross − annualUserDeductions − annualDirectCosts

Where

annualUserDeductions
Annual user-entered deductions (currency units/year)Source: User assumption
annualDirectCosts
Annual direct costs (currency units/year)Source: User assumption
netWorkValue
Annual net work value (currency units/year)Source: Calculated output
Total annualized gross
totalGross = sum(active stream amount × periods per year)

Where

totalGross
Total annualized gross (currency units/year)Source: Calculated output
Effective hourly work value
effectiveHourlyValue = netWorkValue ÷ totalCommittedHours

Where

effectiveHourlyValue
Effective hourly work value (currency units/hour)Source: Calculated output
Total annual committed hours
totalCommittedHours = sum(active stream hours × periods per year)

Where

totalCommittedHours
Total annual committed hours (hours/year)Source: Calculated output

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Pay, time, benefits and work-related costs use the units stated beside each input.

2. Worked example

Input assumptions

40,000 annual plus 500 monthly and 200 weekly for 50 weeks, less 8,000 deductions and costs.

Calculation and outputs

Example

40,000 annual plus 500 monthly and 200 weekly for 50 weeks, less 8,000 deductions and costs.

Annual net work value
48,000.00 currency units
Total annualized gross
56,000.00 currency units
Effective hourly work value
18.82 currency units
Total annual committed hours
2,550

The engine returns 56,000 gross, 48,000 net and 18.82 per committed hour.

Interpretation

Use effective hourly value only after checking each active stream basis and time.

3. Validation and boundary checks

  • The worked example is calculated through the same shared-work-logic engine as the planner.
  • Non-finite and out-of-range assumptions return an input error.
  • Result cards, trace, CSV, PDF and methodology bind to named engine result fields.

4. Assumptions and source classification

  • Each stream basis and committed hours are entered by the user.
  • Deductions are an aggregate user assumption, not a tax calculation.

This calculator has no current policy-data dependency. Its work and pay assumptions are user supplied. Registered family-level regression suites exercise the shared work-logic engine and worked-result reconciliation.

5. Limitations

  • No tax aggregation, employment classification or withholding is inferred.
  • Overlapping hours and double-counted costs must be corrected by the user.

This is educational decision support, not personalised tax, legal, financial or career advice. Check the treatment of your circumstances under the rules that apply to you and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this calculator. Work and pay inputs remain user-supplied because they vary by person, job and contract.

Change history

  1. : Initial public release of the Multiple Income Stream Pay planner and methodology.

Related reading

Use these practical guides to interpret the decision and its assumptions.

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