Overtime Pay Calculator
Overtime is paid at a premium, and small errors in the base rate multiply straight through to the pay cheque. This calculator works out regular pay, overtime pay at your multiplier and the combined total, so you can check a payslip or decide whether extra hours are worth it.
Inputs
Result
1,300
Regular 1,000 · Overtime 300
How the overtime pay calculator works
Regular pay = hourly rate × regular hours, usually capped at 40 in a week.
Overtime pay = hourly rate × multiplier × overtime hours. Time-and-a-half is 1.5; double time is 2.0.
The base for overtime is the regular rate of pay, which in many jurisdictions must include non-discretionary bonuses and shift differentials — not just the nominal hourly wage.
Worked example: 28 an hour, 52 hours worked
- Regular: 40 × 28 = 1,120.
- Overtime hours: 12, at 1.5 × 28 = 42 an hour.
- Overtime pay: 12 × 42 = 504.
- Total gross for the week: 1,624 — a 45% pay increase for 30% more hours.
- Effective average rate across all 52 hours: 31.23.
Common mistakes to avoid
Using the wrong regular rate of pay
Production bonuses and shift premiums usually have to be folded into the base before the multiplier is applied, which raises the overtime rate.
Averaging hours across two weeks
Overtime is generally calculated per workweek. Working 50 hours then 30 does not net out to two 40-hour weeks.
Assuming paid leave counts toward the 40
Holiday and vacation hours are typically not hours worked, so a 40-hour week that includes 8 hours of leave rarely triggers overtime.
Frequently asked questions
How is time-and-a-half calculated?
Multiply the regular hourly rate by 1.5, then by the overtime hours. At 28 an hour, overtime pays 42.
When does double time apply?
It depends on jurisdiction and contract — commonly for very long days, seventh consecutive days, or designated holidays.
Are salaried employees entitled to overtime?
Some are. Exemption usually depends on duties and a salary threshold, not simply on being paid a salary.
Is overtime taxed at a higher rate?
The income is taxed at your marginal rate, so a large overtime cheque can be over-withheld temporarily, but the annual tax owed is unchanged by how it was earned.
Does overtime count for retirement matching?
Usually yes, if the plan matches on total eligible compensation. Check whether your plan defines pay as base only.
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