Business, Legal & Accounting Glossary

Definition: Annualization

Quick Summary of Annualization

Annualization is a tool which is used to predict the annual amount of something using only the data from part of the year.

What is the dictionary definition of Annualization?

Dictionary Definition

The process of annualizing.

A procedure that is used in the USA whereby you multiply the taxable earnings of a month by 12 then divide it by the number of months involved to provide a monthly amount. Annualization as a procedure is specified by the Internal Revenue Code.

Full Definition of Annualization

Annualization is a predictive tool that estimates the amount or rate of something for an entire year, based on data from part of a year. This tool is primarily used for taxes and investments. If you’re paying estimated taxes, you’ll need to annualize your income to determine how much tax to pay.

Synonyms For Annualization

annualisation, annualised hours, annual observance, yearly celebration, pay annualization factor

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Annualization. Payroll & Accounting Heaven Ltd. September 27, 2021
Chicago Manual of Style (CMS):
Annualization. Payroll & Accounting Heaven Ltd. (accessed: September 27, 2021).
American Psychological Association (APA):
Annualization. Retrieved September 27, 2021, from website:

Definition Sources

Definitions for Annualization are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 14th January, 2020 | 6 Views.