How to Calculate Overtime Pay (With Examples)
Calculate overtime pay from your hourly rate and overtime multiplier. The formula, time-and-a-half explained, worked examples, and a free calculator.
Working extra hours should mean extra pay, but only if you know what you are owed. Overtime is usually paid at a higher rate than your normal hours, and a small mistake in the multiplier can cost you real money over a month.
What is overtime pay?
Overtime pay is the higher rate you earn for hours worked beyond your normal schedule. The extra rate is set by a multiplier on your regular hourly pay. The most common is "time and a half" (1.5×), though some roles or jurisdictions use double time (2×) for weekends or holidays.
The overtime formula
Overtime pay = hourly rate × overtime multiplier × overtime hours
Your total for the period is then your regular pay plus that overtime pay.
A worked example
Say your hourly rate is 500, you worked 160 regular hours, and 12 overtime hours at time and a half:
- Regular pay: 500 × 160 = 80,000
- Overtime pay: 500 × 1.5 × 12 = 9,000
- Total: 80,000 + 9,000 = 89,000
Notice the 12 overtime hours earned 9,000 rather than the 6,000 they would have at the normal rate. That is the value of the multiplier.
Calculate it instantly
The overtime calculator works this out from your rate, hours, and multiplier. To total the hours themselves (including breaks and overnight shifts), use the hours calculator, and to see how it all rolls into a yearly figure, the annual salary calculator. More on the salary & payroll tools page.
How overtime affects take-home pay
Overtime adds to your gross pay, so it is taxed and may change your deductions for that period. To see the full picture once overtime is included, our guide on gross vs net salary shows how gross becomes take-home.