How to use the overtime pay calculator
- 1Choose whether you start from an hourly rate or an annual salary. A salary is converted at 40 hours a week for 52 weeks.
- 2Enter the regular hours for the period, for example 40 for one week.
- 3Enter the overtime hours and the overtime multiplier. 1.5 means time and a half.
- 4If some hours are paid at double time, enter them too and check the double-time multiplier.
- 5Read the overtime rate, overtime pay, total gross pay and effective hourly rate. They update as you type.
How overtime pay is calculated
Overtime pay is the regular hourly rate multiplied by the overtime multiplier, then by the overtime hours. At time and a half, a $25 rate becomes $37.50 an hour for every overtime hour.
Total gross pay for the period is regular pay plus overtime pay plus any double-time pay. Tax and other deductions come out after this, so take-home pay will be lower.
Overtime rate = Hourly rate × Overtime multiplier Overtime pay = Overtime rate × Overtime hours Total gross pay = Regular pay + Overtime pay + Double-time pay
When overtime applies
In the US, the federal Fair Labor Standards Act (FLSA) requires overtime at no less than 1.5 times the regular rate for hours over 40 in a workweek, for non-exempt employees. Exempt employees, often salaried staff in certain roles above a salary threshold, are not covered by this rule.
Some states add their own rules. California, for example, also has daily overtime and double time for very long days. Other states have rules of their own too, and this page does not list them all. Canada, the UK and EU countries handle overtime differently again: in the UK there is no general legal right to overtime pay, and it depends on the employment contract. Check your local law and your contract before relying on a figure.
Converting a salary to an hourly rate
If you are paid a salary and are eligible for overtime, the hourly rate is usually the salary divided by the hours it is meant to cover. This tool assumes 40 hours a week for 52 weeks, or 2,080 hours a year, so a $52,000 salary works out to $25 an hour.
If your salary covers a different number of hours, such as 37.5 a week, work out your own hourly rate and use the hourly option instead.
Hourly rate = Annual salary ÷ (40 × 52)
Effective hourly rate
The effective hourly rate is total gross pay divided by all hours worked. It shows the average you earned per hour once overtime premiums are included, which helps when comparing shifts or deciding whether extra hours are worth it.
Effective hourly rate = Total gross pay ÷ Total hours
Worked example
An hourly worker earns $25 an hour and works 48 hours in one week: 40 regular hours and 8 overtime hours at time and a half.
| Hourly rate | $25.00 |
| Regular pay (40 × $25) | $1,000.00 |
| Overtime rate (1.5 × $25) | $37.50 |
| Overtime pay (8 × $37.50) | $300.00 |
| Total gross pay | $1,300.00 |
| Effective hourly rate ($1,300 ÷ 48) | $27.08 |
The week pays $1,300 before tax, of which $300 is overtime. Averaged over all 48 hours, the worker earned about $27.08 an hour.