Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Overtime eligibility and the specific multiplier that applies aren't universal constants. They depend on the applicable wage law's definition of the workweek, which employees are exempt, and what rate the overtime premium is calculated against, so a generic time-and-a-half assumption doesn't automatically fit every situation.
Before you rely on it
What to check
Confirm your actual overtime eligibility status and the specific multiplier that applies under the wage law covering your job, rather than assuming a standard time-and-a-half rate applies universally.
The common error
Where people go wrong with overtime pay calculator
Assuming every worked hour past 40 in a week automatically earns time-and-a-half under a universal rule. Eligibility, the defined workweek and the exact multiplier all vary by classification and jurisdiction.
Sensitivity evidence
How regular hourly rate changes the weekly gross pay
| Regular hourly rate | Weekly gross pay | Annual gross pay | Weekly overtime premium |
|---|---|---|---|
| $24 | $1,320 | $68,640 | $120 |
| $27 | $1,485 | $77,220 | $135 |
| $30worked example | $1,650 | $85,800 | $150 |
| $33 | $1,815 | $94,380 | $165 |
| $36 | $1,980 | $102,960 | $180 |
Every input, tested
Which input moves the weekly gross pay most
| Input | Tested from | To | Weekly gross pay at each end | Swing |
|---|---|---|---|---|
| Regular hourly rate | $27 | $33 | $1,485 to $1,815 | $330 (20%) |
| Regular weekly hours | 36.0 hours | 44.0 hours | $1,530 to $1,770 | $240 (15%) |
| Overtime hours | 9.0 hours | 11.0 hours | $1,605 to $1,695 | $90 (5.5%) |
| Overtime multiplier | 1.4 | 1.7 | $1,620 to $1,710 | $90 (5.5%) |
| Paid weeks per year | 47 | 57 | $1,650 to $1,650 | none |
Two variables at once
Weekly gross pay by regular hourly rate and regular weekly hours
| Regular hourly rate \ Regular weekly hours | 32.0 hours | 40.0 hours | 48.0 hours |
|---|---|---|---|
| $24 | $1,128 | $1,320 | $1,512 |
| $27 | $1,269 | $1,485 | $1,701 |
| $30 | $1,410 | $1,650 | $1,890 |
| $33 | $1,551 | $1,815 | $2,079 |
| $36 | $1,692 | $1,980 | $2,268 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Regular hourly rate | $30 |
| Regular weekly hours | 40.0 hours |
| Overtime hours | 10.0 hours |
| Overtime multiplier | 1.5 |
| Paid weeks per year | 52 |
| Weekly gross pay | $1,650 |
| Annual gross pay | $85,800 |
| Weekly overtime premium | $150 |
Where the inputs come from
Regular hourly rate is the base pay per hour, regular weekly hours are the hours before overtime starts, usually 40 under federal law, and overtime hours are those beyond. The multiplier is 1.5 for time and a half, or 2 for double time in some states and contracts. Paid weeks per year annualizes the result. Some states, such as California, also require overtime after eight hours in a day, and salaried employees may be exempt from overtime depending on duties and salary level.
Using the weekly gross pay in a real decision
For managers, overtime is a labor cost worth comparing with hiring.
When the result stops applying
The calculation is gross pay before taxes, and the extra income is withheld at your normal rates. Rules vary: the federal Fair Labor Standards Act sets the minimum for non-exempt workers, but state and union rules can be more generous. The regular rate for overtime can include non-discretionary bonuses. Tip credits, on-call time and fluctuating workweeks have special rules.
What to compare it with
See the take-home effect on the paycheck and take-home pay calculators, and the salary-to-hourly page to compare pay types. The employee cost calculator shows what overtime costs an employer, and the contractor versus employee page compares options. Track hours carefully, since unpaid overtime is a common wage claim.
People also ask
Frequently asked questions
Who is eligible for overtime?
Non-exempt employees, generally hourly workers and salaried workers below the exemption salary threshold or who do not meet the duties tests, must be paid overtime after 40 hours a week.
Is overtime taxed more heavily?
It is taxed at your normal rates, but the extra income may fall in a higher bracket, and withholding on a larger paycheck can look higher than usual.
Do some states require overtime after 8 hours a day?
Yes. California and a few other states require daily overtime in addition to weekly overtime, so check your state's rules.