What is the calculation used for determining Gross Monthly Income (GMI) based on hourly pay?

The calculation for determining Gross Monthly Income (GMI) based on hourly pay is accurately represented by multiplying the hourly pay by the number of hours worked per week, then multiplying that product by 52 to get the annual income, and finally dividing by 12 to convert it into a monthly figure.

This method effectively captures the full salary derived from hourly pay throughout the year and translates that into a monthly income, which is essential for qualifying for loans and budgeting purposes. Using this calculation gives a comprehensive picture of what an individual earns on a monthly basis based on their consistent working hours, making it a standard approach in financial assessments.

The other options either do not account for a full year of income or misrepresent the relationship between hours worked and income calculation, which can lead to inaccurate estimations of monthly earnings. Understanding this calculation is crucial for applicants to provide lenders with an accurate snapshot of their earning capacity.