Overtime Pay: what this calculator does

Overtime is one of those paycheck topics that sounds simple (“time-and-a-half”), but gets confusing fast once you mix in different pay periods, double time, shift differentials, and salary-to-hourly conversions. This Overtime Pay Calculator is designed to answer the practical questions people actually ask: How much extra money do I make if I work X overtime hours? What’s my total gross pay for the week or pay period? And what’s the overtime premium (the extra amount above your normal hourly pay)?

You enter your hourly rate (or an annual salary that we convert into an estimated hourly rate), your regular hours, and any overtime and double-time hours. The calculator then breaks your results into: regular pay, overtime pay, double-time pay, total gross pay, and the overtime premium. This makes it easy to screenshot and share, compare two different schedules, or decide whether that extra shift is worth it.

Core formulas (simple, but powerful)

Overtime calculations are built from one idea: you have a base hourly rate, and certain hours are paid at a multiplier of that rate. The common multiplier is 1.5× (time-and-a-half), but some workplaces use 2.0× (double time) after a threshold.

• Regular pay = hourly rate × regular hours
• Overtime pay = hourly rate × overtime hours × overtime multiplier
• Double-time pay = hourly rate × double-time hours × double-time multiplier
• Total gross pay = regular pay + overtime pay + double-time pay + shift differential pay

A useful extra metric is the overtime premium. This is the “extra” you earn because those hours are paid above your normal rate:

• Overtime premium = hourly rate × overtime hours × (overtime multiplier − 1)

Example: if you earn $20/hour and work 10 overtime hours at 1.5×, your overtime pay is $20 × 10 × 1.5 = $300. But the premium is $20 × 10 × (1.5 − 1) = $100. That means $200 of the $300 is just your normal pay for those hours, and $100 is the “bonus” that makes it overtime.

Salary to hourly: how the estimate works

If you’re paid salary but want to estimate overtime value, we convert salary into an hourly equivalent:

• Estimated hourly rate = annual salary ÷ (weeks per year × regular hours per week)

By default we assume 52 weeks per year. If you set “regular hours per week” to 40 and your salary is $78,000, the estimated hourly rate is $78,000 ÷ (52 × 40) ≈ $37.50/hour.

Important: real-world salary overtime rules vary by role, exemption status, and local labor law. This salary-to-hourly option is best for “what-if” planning (comparing schedules, valuing extra time, or estimating project overtime), not as a legal determination of eligibility.

Step-by-step example you can copy

Let’s say you work a weekly schedule with:

• Hourly rate: $28.00
• Regular hours: 40
• Overtime hours: 8 at 1.5×
• Double-time hours: 2 at 2.0×

Regular pay = $28 × 40 = $1,120.
Overtime pay = $28 × 8 × 1.5 = $336.
Double-time pay = $28 × 2 × 2.0 = $112.
Total gross pay = $1,120 + $336 + $112 = $1,568.

Overtime premium = $28 × 8 × 0.5 = $112 (your extra “time-and-a-half” bump).
Double-time premium = $28 × 2 × 1.0 = $56 (the extra above your base rate on double time).

So in this schedule, overtime adds $168 in premium pay ($112 + $56) on top of the base pay for those hours. That’s a great number to focus on when you’re deciding whether to take on additional shifts.

How to use the calculator (and get “clean” results)

1) Choose a pay basis. If you already know your hourly rate, select Hourly. If you want an estimate from salary, select Salary and enter your annual salary and regular hours per week.

2) Enter your hours. Use “regular hours” for hours paid at 1.0×. Enter any overtime hours and double-time hours separately. If your employer uses a different overtime multiplier (for example 1.25× or 1.75×), you can change it.

3) Add shift differential if applicable. Some jobs pay an extra dollar amount per hour (for nights, weekends, hazard pay, etc.). If you have that, enter it as a per-hour add-on and apply it to all hours (or use it as a rough estimate).

4) Click Calculate Overtime Pay and review the breakdown. The “premium” line is your quick reality check. If premium looks too small or too large, double-check that your multipliers are correct.

Common overtime “gotchas” (why estimates can differ from your paystub)

If your paystub differs from this estimate, it’s usually because of one of these:

• Different overtime rules: some regions calculate overtime daily (e.g., after 8 hours/day) vs weekly (after 40 hours/week).
• Multiple rates: if you have different base rates in the same period (two jobs, two roles, bonuses), overtime may use a weighted average.
• Non-discretionary bonuses: some bonuses must be included when calculating the “regular rate” for overtime purposes.
• Exempt vs non-exempt: salary doesn’t automatically mean overtime-eligible.
• Rounding: payroll systems often round to the nearest minute, tenth, or quarter hour.

This calculator is optimized for the most common setup: one base hourly rate and clear overtime/double-time hours. If your situation is more complex, the estimate is still useful for planning (and it helps you know what questions to ask payroll).

FAQs

Is overtime always 1.5×?
No. 1.5× is common, but some employers use different multipliers, and some use double time after a threshold. That’s why the multipliers are editable in this calculator.

What is “overtime premium” and why should I care?
Premium is the extra money above your base pay. It’s the part you’re trading your free time for. If you’re comparing two schedules, premium is the cleanest comparison metric.

Can I use this to calculate taxes on overtime?
This calculator shows gross pay, not withholding. If you want an after-tax estimate, pair this with our Effective Tax Rate Calculator or Take Home Pay Calculator.

How do I estimate overtime if I’m salaried?
Use the Salary option to convert your annual salary into an estimated hourly rate based on your typical weekly hours. Then add overtime hours as a “what-if” value calculation.

Does shift differential apply to overtime?
Sometimes. Policies vary. If your differential is a flat $/hour add-on, you can include it here for an estimate. If your differential changes by shift type, you may need to run the calculator twice and compare.

Make it shareable (and useful)

A quick way to use this tool is to calculate your weekly premium and turn it into a personal benchmark: “Each overtime hour is worth $X extra to me.” When you know that number, you can make better decisions fast— whether you’re negotiating a schedule, budgeting for a big goal, or simply protecting your time.