Define: Annualization

UK 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.


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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.


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Synonyms For Annualization


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


Cite Term


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https://payrollheaven.com/define/annualization/
Modern Language Association (MLA):
Annualization. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 28, 2020 https://payrollheaven.com/define/annualization/.
Chicago Manual of Style (CMS):
Annualization. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/annualization/ (accessed: February 28, 2020).
American Psychological Association (APA):
Annualization. PayrollHeaven.com. Retrieved February 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/annualization/

Definition Sources


Definitions for Annualization are sourced/syndicated and enhanced from:

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

This glossary post was last updated: 4th February 2019.