Overtime Pay Calculator

What formula does this tool use for overtime pay?

This tool uses overtime pay = overtime hours × (hourly rate × multiplier), and regular pay = regular hours × hourly rate. Weekly total is the sum of the two. The effective hourly rate is the weekly total divided by regular plus overtime hours. With the defaults of $25 an hour, 40 regular hours, 8 overtime hours and 1.5×, that is $1,000.00 + $300.00 = $1,300.00, an effective rate of $27.08.

Which multipliers are built in?

The selector offers three figures: 1.5× (time and a half), 2× (double time) and 2.5×. These are the figures built into this tool; they are menu options and not a statement of what any rule requires. Whether overtime is owed at all, from which hour, and at what rate depends on country, state or province, contract and employer policy, so check local law and your employer’s policy before relying on a figure.

Does the tool decide which hours count as overtime?

No. You split the week yourself into regular and overtime hours. The regular-hours box is not capped at 40 or any other number, so 32 regular and 6 overtime hours is calculated exactly as entered. If your employer counts overtime by day, by week or after a different threshold, work that out first and type the resulting hours in.

What does the number-of-weeks field change?

Only one line. “Total for N weeks” multiplies the weekly total by the number of weeks. Every other result stays a single-week figure. Entering 0 gives a period total of $0.00, and clearing the box does the same because an emptied number box becomes 0.

How is the annualized overtime figure calculated?

It takes one week of overtime pay and multiplies it by 52. It ignores the weeks field, so at $360.00 of weekly overtime the figure is $18,720.00 whether you enter 1 week or 4. It assumes you work the same overtime every week of the year, which most people do not, so read it as an illustration.

What happens with a rate of zero or zero hours?

A rate of zero makes every pay figure $0.00. With zero regular and zero overtime hours the pay figures are $0.00 and the effective hourly rate shows $0.00 instead of dividing by zero. Negative entries are treated as zero. The overtime-rate line still shows the rate times the multiplier, so it is $37.50 with the default rate even when no hours are entered.

Is the result before or after tax?

Before. The tool does not deduct income tax, social contributions, pension or any other withholding, so the total is gross pay. How overtime pay is taxed and withheld varies by country and payroll; the payslip calculator on this site shows deduction lines, but its figures are also simplified.

What does the tool leave out?

It has no shift premiums, bonuses, tiered rates (such as 1.5× for the first hours and 2× beyond that in the same week), unpaid breaks, or rules for salaried staff. Each run uses a single multiplier for all overtime hours entered.