Work out what the extra hours are worth
Overtime is where pay mistakes like to hide. The hours are irregular, the rate is different, and a payslip rarely shows the sum. This calculator takes your hourly rate, your regular hours and your overtime hours and shows regular pay, the overtime rate, overtime pay and the total for the period.
If some hours are paid at double time, add those too. You also get the average you earned per hour across the whole period, which is a quick way to see how much the extra hours lifted your pay.
How to use it
- Enter your normal hourly rate.
- Enter your regular hours for the period, often 40 for a week.
- Enter your overtime hours and the multiplier. Time and a half is 1.5.
- If any hours are paid at double time, add them in the optional box.
- Read the total pay before tax, with each part listed below.
The overtime formula
overtime rate = hourly rate × multiplier
overtime pay = overtime hours × overtime rate
total = regular hours × rate + overtime pay + double time hours × rate × 2In the US, the Fair Labor Standards Act says covered, non-exempt employees must be paid at least one and a half times their regular rate for hours over 40 in a workweek. A workweek is a fixed period of 168 hours, seven days in a row, and each one is counted on its own; hours cannot be averaged across two weeks. Federal law does not require extra pay just for working weekends or holidays, though some states and contracts do. See the US Department of Labor's overtime fact sheet for the details.
Worked example: 44 hours at 8 an hour
This is the example the Department of Labor uses in its own guidance. An employee is paid $8 an hour and works 44 hours in a week.
- Regular pay: 40 × $8 = $320.00
- Overtime rate: $8 × 1.5 = $12.00 an hour
- Overtime pay: 4 × $12 = $48.00
- Total: $320 + $48 = $368.00
The week pays $368.00 before tax. Put the same numbers into the calculator and you get the same total, with an average of $8.36 for every hour worked.
Overtime rates at a glance
| Hourly rate | Time and a half | Double time |
|---|---|---|
| 15 | 22.50 | 30 |
| 18 | 27 | 36 |
| 20 | 30 | 40 |
| 25 | 37.50 | 50 |
| 30 | 45 | 60 |
Where overtime pay goes wrong
- Counting paid leave as hours worked. Under the federal rule, holiday and sick hours that were not worked usually do not count toward the 40, though some contracts treat them differently.
- Averaging two weeks. A 50 hour week followed by a 30 hour week still has 10 overtime hours in the first week.
- Using the wrong base rate. Some bonuses and shift premiums count toward the regular rate the overtime is based on. If your pay has extras, check how your employer works it out.
- Forgetting state rules. Some states pay overtime after a set number of hours in a day as well as in a week. Our time card calculator can apply daily or weekly overtime from start and end times.
Frequently asked questions
How do I calculate time and a half?
Multiply your hourly rate by 1.5. At 20 an hour, time and a half is 30 an hour, so 5 overtime hours pay 150. Add that to your regular pay for the total. The calculator shows the overtime rate, the overtime pay and the total together, and lets you change the multiplier for other rates.
When does overtime start?
Under the US federal rule, after 40 hours worked in a fixed seven-day workweek, for employees the law covers. Some states also pay overtime after a number of hours in a single day, and many contracts and countries have their own limits. Check your contract or local labour office for the rule that applies to you.
What is double time?
Double time is pay at twice your normal hourly rate. It is less common than time and a half and usually comes from a contract, a union agreement or a state rule, for example for very long days or work on certain holidays. Enter double time hours in the optional box and they are added at twice the rate.
Is overtime pay taxed differently?
Overtime is usually taxed as ordinary income, just like the rest of your pay. A big overtime week can make a single paycheck look heavily taxed because withholding treats it as if you earned that much every week. The figures here are before tax, so your take-home will be lower.
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