Overtime Pay Calculator
This calculator works out your overtime rate and your total pay for a period that includes overtime. Choose time and a half (the standard US overtime rate under the Fair Labor Standards Act), double time, or any custom multiplier from your contract.
In the US, non-exempt employees must be paid at least 1.5× their regular rate for hours beyond 40 in a workweek. Rules differ elsewhere. The UK has no statutory overtime rate, and some Australian awards pay 1.5× for the first few overtime hours and 2× after that. Check your contract or local rules.
How overtime pay is calculated
Overtime rate = Regular hourly wage × Multiplier
Total pay = (Regular hours × Regular rate) + (Overtime hours × Overtime rate)
"Time and a half" means a multiplier of 1.5, so $20/hour becomes $30/hour for overtime. "Double time" means 2×, or $40/hour. In some jurisdictions the regular rate must include certain bonuses and shift differentials, so your true overtime rate may be slightly higher than base wage × 1.5.
Worked example
A warehouse worker earns $18/hour and works 47 hours in a week, with time and a half after 40 hours:
| Regular pay | 40 h × $18 = $720.00 |
|---|---|
| Overtime rate | $18 × 1.5 = $27.00 |
| Overtime pay | 7 h × $27 = $189.00 |
| Total weekly pay | $909.00 |
Those 7 overtime hours added 26% more pay for 17.5% more hours. That is the point of the premium rate.
Is overtime worth it?
Overtime is added to gross wages and taxed at your marginal rate, the rate on your next dollar. A common myth says overtime "pushes you into a higher bracket" and leaves you worse off. It does not. Only the extra income is taxed at the higher rate, so more overtime always means more take-home pay.
If overtime is a regular part of your job, convert your average weekly pay into an annual figure with the hourly to salary calculator. It can change how your job compares to a salaried offer.
Frequently asked questions
What is time and a half for $20 an hour?
Time and a half for $20 an hour is $30 an hour ($20 × 1.5). Eight hours of overtime at that rate adds $240 of gross pay.
When does overtime start?
In the US, federal law requires overtime after 40 hours in a workweek for non-exempt employees. Some states, like California, also require daily overtime after 8 hours. Elsewhere the trigger is set by your contract or industry award.
Do salaried employees get overtime?
Sometimes. In the US, salaried employees classified as non-exempt still get overtime. Exempt employees (certain professional, administrative and executive roles above a salary threshold) do not. Classification depends on duties and salary level, not just being paid a salary.
Is overtime taxed at a higher rate?
Overtime is taxed as ordinary income. Your employer may withhold more from a larger paycheck, but the tax you owe is calculated on your full-year income. Extra withholding evens out when you file.
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This calculator is for general information and education only. It is not professional advice. Confirm important decisions with a qualified adviser.