Overtime Calculator
Quickly compute overtime with accurate formulas. See amortization schedules, growth projections, and side-by-side comparisons.
Overtime Calculator
Calculator
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Formula: Total Pay = (Regular Rate × Regular Hours) + (Regular Rate × OT Multiplier × OT Hours)
Worked example — Weekly: $1,375 | Effective Rate: $27.50/hr | Annual: $71,500 | OT adds $19,500/year
Formula
Total Pay = (Regular Rate × Regular Hours) + (Regular Rate × OT Multiplier × OT Hours)
Regular pay is your base hourly rate times regular hours worked (typically 40/week). Overtime pay is calculated at your OT rate (base rate times the OT multiplier, usually 1.5x for time-and-a-half or 2x for double time) times overtime hours. The effective hourly rate equals total pay divided by total hours worked.
Worked Examples
Example 1: Standard Overtime Calculation
Problem:An employee earns $25/hour, works 40 regular hours and 10 overtime hours at time-and-a-half. Calculate total weekly pay.
Solution:Regular pay = $25 × 40 = $1,000 OT rate = $25 × 1.5 = $37.50/hour OT pay = $37.50 × 10 = $375 Total weekly pay = $1,000 + $375 = $1,375 Effective hourly rate = $1,375 / 50 hours = $27.50/hour OT premium (extra above base) = $375 - ($25 × 10) = $125 Annual with OT = $1,375 × 52 = $71,500 Annual without OT = $1,000 × 52 = $52,000 OT boost = $19,500/year (+37.5%)
Result:Weekly: $1,375 | Effective Rate: $27.50/hr | Annual: $71,500 | OT adds $19,500/year
Example 2: California Double Time Scenario
Problem:An employee in CA earns $30/hour, works 8 regular hours, 4 OT hours (1.5x), and 2 double-time hours in one day.
Solution:Regular pay = $30 × 8 = $240 OT rate = $30 × 1.5 = $45/hour OT pay = $45 × 4 = $180 DT rate = $30 × 2.0 = $60/hour DT pay = $60 × 2 = $120 Total daily pay = $240 + $180 + $120 = $540 Total hours = 14 Effective rate = $540 / 14 = $38.57/hour OT premium = ($180 - $120) + ($120 - $60) = $120
Result:Daily Pay: $540 for 14 hours | Effective Rate: $38.57/hr | Premium earned: $120 above base
Frequently Asked Questions
How is overtime pay calculated under federal law?
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate of pay for all hours worked beyond 40 in a workweek. This is commonly called 'time-and-a-half.' The regular rate includes your base hourly rate plus certain other types of compensation like non-discretionary bonuses and shift differentials. For example, if your hourly rate is $25, your overtime rate is $25 x 1.5 = $37.50/hour. For 10 overtime hours, you'd earn $375 in OT pay. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest unless the hours exceed 40 for the workweek. Some states have additional daily overtime requirements — California requires OT after 8 hours per day regardless of weekly total.
Who is exempt from overtime pay?
Under the FLSA, employees are classified as either 'exempt' or 'non-exempt' from overtime. Exempt employees do not receive overtime pay. To be exempt, an employee must generally: earn at least $684 per week ($35,568/year) on a salary basis, AND perform specific types of job duties. The main exemptions are: Executive (manages a department, supervises 2+ employees), Administrative (performs office work related to business operations), Professional (requires advanced knowledge in a specialized field), Computer (systems analysts, programmers earning $27.63+/hour), and Outside Sales. Simply being paid a salary does not make you exempt — both the salary threshold and duties test must be met. Many employers misclassify workers as exempt to avoid paying overtime, which is illegal. If you believe you've been misclassified, contact your state labor board or the Department of Labor.
Do some states have different overtime rules?
Yes, several states have overtime laws that go beyond federal requirements. California is the most notable: it requires overtime (1.5x) after 8 hours per day AND after 40 hours per week, plus double time (2x) after 12 hours per day or after 8 hours on the 7th consecutive workday. Alaska requires overtime after 8 hours per day. Colorado requires overtime after 12 hours per day or 40 hours per week. Nevada requires overtime after 8 hours per day if the employee's regular rate is less than 1.5x minimum wage. Oregon requires daily overtime in manufacturing. Some states also have specific requirements for certain industries. When both federal and state overtime laws apply, the employee is entitled to the higher overtime pay. Always check your state's specific rules, as they can significantly increase your overtime earnings.
How does overtime affect my taxes?
Overtime pay is taxed the same as regular income — there is no special higher tax rate for overtime. However, overtime can push your total earnings into a higher marginal tax bracket, meaning the additional income is taxed at a higher percentage. For example, if your regular salary puts you in the 22% bracket and overtime pushes some income into the 24% bracket, only the overtime income above the bracket threshold is taxed at 24%. Your base salary remains at 22%. Additionally, overtime increases your Social Security tax (6.2% up to $168,600) and Medicare tax (1.45%), and may push you past the $200,000 threshold for the 0.9% additional Medicare tax. Many people notice their OT checks seem heavily taxed — this is because employers withhold at a higher rate on larger checks, but you may get some back as a refund when you file your annual return.
What is the difference between overtime and double time?
Overtime (OT) typically refers to pay at 1.5 times your regular rate (time-and-a-half), while double time means pay at 2.0 times your regular rate. Federal law (FLSA) only requires time-and-a-half overtime and does not mandate double time. However, some states and employer policies include double-time provisions. In California, double time is required after 12 hours in a single workday and for all hours after 8 on the seventh consecutive workday in a workweek. Many union contracts include double-time provisions for holidays, weekends, or extremely long shifts. Some employers voluntarily offer double time on holidays or specific days. For a $25/hour worker: time-and-a-half = $37.50/hour, double time = $50/hour. Working 4 hours of double time earns $200 versus $150 at time-and-a-half — a $50 difference that adds up significantly over the year.
What is the regular rate of pay and why can it exceed my base hourly wage?
Overtime is computed on the regular rate, not simply the posted hourly wage. It is computed by dividing total qualifying earnings for the workweek by the hours actually worked, so any pay that is tied to output or conditions raises the divisor-based rate for that week only. Truly discretionary gifts and certain reimbursements are typically excluded from the calculation. Because a production bonus raises the regular rate, it also raises the overtime premium tied to it. If your pay includes variable components, the effective overtime rate Overtime Calculator shows from a single base rate will be conservative.
Do paid holidays, vacation and sick hours count toward the overtime threshold?
Under federal rules the overtime threshold counts hours actually worked in the workweek, so paid time off, holidays and sick leave generally do not push you over the line even though they appear on the same paycheck. A week with 32 worked hours and 8 holiday hours shows 40 paid hours but no statutory overtime. Employers and union contracts may be more generous and choose to count paid leave as hours worked, so check your handbook or collective agreement before assuming.
What is the difference between a weekly overtime threshold and a daily one?
The federal standard is weekly: hours beyond 40 in a single fixed workweek earn the premium, regardless of how they are distributed across days. Some states add a daily threshold, so hours past a set number in one shift qualify even if the week totals under 40. Under a daily rule, four ten-hour days can generate overtime that a purely weekly rule would ignore. Enter the hours your own jurisdiction actually treats as overtime, and verify the current state rule.
How does working overtime change my effective hourly rate?
The effective hourly rate is total pay divided by total hours worked, and it always sits between the base rate and the overtime rate. At 20 dollars an hour, 40 regular hours pay 800 dollars and 10 overtime hours at time and a half pay 300 dollars, giving 1,100 dollars over 50 hours, or 22 dollars per hour effective. The metric is useful for comparing an overtime-heavy job with a salaried offer, since the salaried role has no premium hours at all.
Why can an annual overtime projection overstate what I actually earn?
The annual figure multiplies one representative week across the year, so it assumes overtime is offered at the same volume every week and that you take no unpaid absences. Real schedules cycle with seasonal demand, project deadlines, staffing levels and overtime freezes. Treat the annual number as a ceiling for budgeting, and model a lower baseline week separately before committing to fixed obligations such as a loan payment that depends on premium hours continuing.
References
Reviewed for accuracy by Sahil, Senior Finance & Tax Editor · Editorial policy
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