Income Smoothing
Convert irregular or variable income into a stable monthly salary. Enter 6 months of income to calculate a safe baseline and required buffer fund.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
Inputs
Results
Smoothed Salary (Conservative)
$4,000.00
≈ 4 smartphones
Buffer Fund Target
$3,000.00
≈ 3 smartphones
How to Use This Calculator
- Enter your actual income for each of the last 6 months (or projected months for new freelancers).
- Input your monthly fixed expenses so the calculator can determine your income floor.
- Review Average Monthly Income and Smoothed Salary (Conservative) — pay yourself this amount each month regardless of income.
- Check Monthly Buffer Contribution and Buffer Fund Target to plan how much to save for lean months.
- Use Months to Buffer to set a timeline for building your income-smoothing fund.
How the result changes with Month 5 Income
| Month 5 Income | Smoothed Salary (Conservative) | Buffer Fund Target |
|---|---|---|
| $10,000.00 | $4,166.67 | $5,250.00 |
| $35,000.00 | $4,166.67 | $17,749.98 |
| $65,000.00 | $4,166.67 | $32,749.98 |
| $90,000.00 | $4,166.67 | $45,249.99 |
What each input means
- Month 1 Income
- Income received in month 1
- Month 2 Income
- Income received in month 2
- Month 3 Income
- Income received in month 3
- Month 4 Income
- Income received in month 4
- Month 5 Income
- Income received in month 5
- Month 6 Income
- Income received in month 6
- Monthly Fixed Expenses
- Total monthly bills and fixed expenses you must cover
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersMonth 1 Income = 4000, Month 2 Income = 6000, Month 3 Income = 3500, Month 4 Income = 7000 = 7 input(s) provided
- Calculate Smoothed SalarySmoothed Salary4000 = $4,000
- Calculate Buffer Fund Target3000 = $3,000
- Calculate Average Monthly IncomeAverage Monthly Income5000 = $5,000
- Calculate Monthly Buffer ContributionMonthly Buffer Contribution = max(monthlyBufferContribution1000 = $1,000
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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