Overtime Calculator

Overtime Pay Formula

In the US, the standard overtime multiplier is 1.5× your regular hourly rate (known as "time and a half") for any hours worked over 40 in a single workweek. Some states and contracts use different multipliers (e.g., 2× for holidays or double overtime).

Example

If you earn $25/hour and work 10 hours of overtime per week at 1.5×:

How to Interpret Your Result

The calculator shows your weekly, monthly, and annual overtime projections. Here's what to keep in mind:

• Monthly and annual are estimates: They assume you work the same overtime every week. In reality, overtime fluctuates. Use these as a baseline, not a guarantee.
• Tax impact: Overtime earnings are taxed as ordinary income. In some cases, working a lot of overtime can push you into a higher tax bracket, meaning your marginal take-home per overtime hour may be less than expected.
• Opportunity cost: 10 hours of overtime at $37.50 is $375/week. But if those 10 hours leave you exhausted and less productive the next day, the real value may be lower.

Common Mistakes

• Assuming daily overtime: Under US federal law, overtime is calculated weekly (over 40 hours in a workweek), not daily. Some states (like California) have daily overtime rules — check your local labor laws.
• Overestimating annual totals: Projecting 52 weeks of overtime assumes no vacation, no sick days, and no slow weeks. A more realistic annual estimate might use 48 weeks.
• Forgetting that overtime isn't guaranteed: Employers can reduce or eliminate overtime at any time. Don't base your core budget on overtime income.

Frequently Asked Questions

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