How to calculate overtime pay
Overtime pay is commonly calculated by multiplying an employee's regular hourly rate by an overtime multiplier and then multiplying the result by the number of overtime hours worked.
Overtime rate = Regular hourly rate × overtime multiplier
Overtime pay = Overtime rate × overtime hours
Total gross pay = Regular pay + overtime pay
What is time and a half?
Time and a half means an employee receives 1.5 times their regular hourly rate for qualifying overtime hours.
For example, if your regular hourly rate is $20, a 1.5× overtime rate would be $30 per overtime hour.
$20 × 1.5 = $30 overtime rate
If you worked 8 qualifying overtime hours:
$30 × 8 = $240 overtime pay
2026 overtime pay information
Overtime rules can depend on federal law, state law, employee classification, and the circumstances of the work arrangement. The common 1.5× calculation used by this calculator is an estimate and does not determine whether particular hours legally qualify for overtime.
Federal overtime requirements generally involve covered, nonexempt employees working more than 40 hours in a workweek. There can be important exceptions and different rules for certain employees and occupations.
For an authoritative explanation of federal overtime requirements, consult the U.S. Department of Labor and applicable state labor authorities.
Does overtime increase your total pay?
Yes. If the overtime hours are paid in addition to your regular hours, your gross earnings increase by the overtime amount.
However, gross overtime pay is not the same as take-home pay. Federal income tax, Social Security, Medicare, state taxes, and other deductions can reduce the amount that reaches your paycheck.
For a broader estimate that includes taxes and deductions, use the PaycheckMint Paycheck Calculator .
Overtime pay examples
$20 per hour with 5 overtime hours
At $20 per hour, 40 regular hours produce $800 of regular weekly pay. With a 1.5× overtime rate, each overtime hour is worth $30. Five overtime hours add $150, resulting in an estimated $950 gross weekly pay.
$30 per hour with 10 overtime hours
At $30 per hour, 40 regular hours produce $1,200 of regular weekly pay. A 1.5× overtime rate produces $45 per overtime hour. Ten overtime hours add $450, resulting in an estimated $1,650 gross weekly pay.
Overtime Pay Calculator FAQ
How is overtime pay calculated?
Multiply the regular hourly rate by the overtime multiplier and then multiply that overtime rate by the qualifying overtime hours.
What is time and a half?
Time and a half means 1.5 times the regular hourly rate. For example, a $24 hourly rate becomes $36 per overtime hour at 1.5×.
Is overtime pay taxed?
Generally, overtime wages are taxable income. The amount withheld from an actual paycheck depends on applicable federal, state, local, and payroll withholding rules.
Does every overtime hour have to be paid at 1.5×?
Not necessarily. Overtime requirements can depend on federal law, state law, employee classification, employment agreements, and other circumstances.
Can I use this calculator for annual overtime income?
Yes. Enter your expected weekly overtime hours and the number of weeks you expect to work during the year. The calculator will estimate your annual gross earnings.
Methodology and limitations
This calculator estimates gross overtime earnings from the hourly rate, regular hours, overtime hours, overtime multiplier, and weeks worked per year entered by the user.
It does not determine whether you are legally entitled to overtime, calculate every possible state or local overtime rule, or replace an employer's payroll calculation.