Glossary
Gross Income
Gross income is the total amount you earn before any deductions — taxes, insurance premiums, retirement contributions, and other withholdings. It's the "headline" number on your job offer.
Why it matters
Gross income is the starting point for almost every financial calculation: tax brackets, DTI ratios, retirement contribution limits, and loan qualification. But it's also misleading if you use it for budgeting — your actual spending power is net income, which can be 25-40% less than gross.
Example
A salary of $85,000/year is your gross income. After federal tax, state tax, Social Security, Medicare, and health insurance, your net might be $58,000-$63,000.
How Ray helps
Ray can identify your gross income from paycheck deposits and separate pre-tax deductions. Run to see your total earnings aggregated from all income sources.
$ ray "what is my gross income this year?"Related terms
Net Income
Net income is your take-home pay after all deductions — federal and state taxes, Social Security, Medicare, health insurance premiums, and retirement contributions.
Tax Bracket
A tax bracket is a range of income taxed at a specific rate in the U.S.
Debt-to-Income Ratio
Debt-to-income ratio (DTI) compares your total monthly debt payments to your gross monthly income, expressed as a percentage.
Savings Rate
Your savings rate is the percentage of your income that you save or invest rather than spend.
Budget
A budget is a plan for how you'll allocate your income across spending categories, savings, and debt payments over a set period — usually monthly..