Calculate Overtime Pay: Formula + Examples
Learn how to calculate overtime pay from an hourly rate, regular hours, overtime hours, and a multiplier. See clear 1.5x examples and estimate gross pay.
To calculate overtime pay, multiply your hourly rate by the overtime multiplier and the number of overtime hours. Then add that amount to your regular pay.
Regular pay = hourly rate × regular hours
Overtime pay = hourly rate × overtime multiplier × overtime hours
Gross total pay = regular pay + overtime pay
For example, at $25 an hour, with 40 regular hours and 5 overtime hours at time-and-a-half, the weekly estimate is $1,187.50 before deductions:
| Pay component | Calculation | Amount |
|---|---|---|
| Regular pay | $25 × 40 | $1,000.00 |
| Overtime pay | $25 × 1.5 × 5 | $187.50 |
| Gross total | $1,000 + $187.50 | $1,187.50 |
Use the overtime pay calculator to change the rate, hours, and multiplier without doing the arithmetic by hand. Its results are gross-pay estimates, not a paystub or a legal determination.
How the overtime pay formula works
The first part of the calculation pays your regular hours at the normal hourly rate. The second part pays each overtime hour at a higher rate.
At a 1.5× multiplier, an hourly rate of $25 becomes $37.50 for each overtime hour:
$25 × 1.5 = $37.50 overtime rate
If you work 8 overtime hours instead of 5, the overtime portion is $25 × 1.5 × 8 = $300. Add that to the regular pay for the same workweek.
The calculator shows regular pay, overtime pay, total hours, and gross total separately. Keeping those pieces separate makes it easier to compare the result with a paystub.
A quick overtime pay example
Here is the same formula with a different schedule: $18 per hour, 40 regular hours, and 6 overtime hours at 1.5×.
| Pay component | Calculation | Amount |
|---|---|---|
| Regular pay | $18 × 40 | $720.00 |
| Overtime pay | $18 × 1.5 × 6 | $162.00 |
| Gross total | $720 + $162 | $882.00 |
The effective hourly rate across all 46 hours is about $19.17 ($882 ÷ 46). That average is useful for a quick comparison, but it is not the rate used to calculate the overtime line itself.
Is overtime always time and a half?
For many covered, nonexempt employees, the federal Fair Labor Standards Act requires at least one and one-half times the employee's regular rate of pay for hours worked over 40 in a workweek. The U.S. Department of Labor explains the rule and its exceptions in its overtime pay guidance and Fact Sheet #23.
That does not turn every extra hour into a 1.5× payment. Coverage, exempt status, an employee's regular rate, state rules, and the specific work arrangement can change the answer. Treat a calculator as a way to test the math after you know which rule applies to your situation.
The Yaya Tools calculator also includes a 2× option, so you can estimate a schedule when your pay policy or agreement uses that multiplier. It does not decide when a multiplier is legally required.
Does an overtime calculator include taxes?
No. The calculator reports gross pay before federal and state taxes, benefit deductions, insurance, retirement contributions, or other withholding. Take-home pay can be lower for reasons that have nothing to do with the overtime formula.
If you are comparing an hourly offer to a yearly amount, use the hourly wage to annual salary calculator separately. It annualizes a regular hourly schedule; it does not assume overtime happens every week.
For a full-time $25-per-hour example without overtime, see $25 an hour is how much a year.
What hours should you enter?
Enter the regular hours and overtime hours for the pay period you are estimating, using the rule that applies to you. If your shifts vary, add up your actual hours first with the time card calculator, then enter the regular and overtime portions in the overtime calculator.
Do not add unpaid breaks to the total just because they appear between the start and end of a shift. If you are unsure which hours count, use your employer's time records and the applicable rules instead of trying to infer the answer from a calculator.
Frequently asked questions
How do you calculate overtime pay at 1.5 times?
Multiply the hourly rate by 1.5, then multiply by the overtime hours. At $20 an hour with 4 overtime hours, the overtime pay is $20 × 1.5 × 4 = $120.
How do you calculate total pay with overtime?
Calculate regular pay and overtime pay separately, then add them. For 40 regular hours at $20 plus 4 overtime hours at 1.5×, the gross total is ($20 × 40) + ($20 × 1.5 × 4) = $920.
Is overtime calculated daily or weekly?
The federal rule described by the Department of Labor is based on hours over 40 in a workweek for covered, nonexempt employees. Other rules can apply depending on the situation, so verify the policy or law that governs your work before relying on an estimate.
Why does my paystub not match this estimate?
Your employer may use a different regular rate, pay-period boundary, overtime rule, or set of included earnings. Taxes and deductions also reduce take-home pay but are not included in this calculator.
Estimate your overtime pay
Start with your hourly rate, regular hours, overtime hours, and multiplier in the free overtime pay calculator. Once you have the gross estimate, compare each part against your time record and paystub rather than looking only at the final total.