How Overtime Pay Is Calculated (Time-and-a-Half, Double Time, and More)
Overtime pay is additional pay for hours worked beyond a threshold (often 40 hours/week) for eligible workers.
The most common overtime rate is time-and-a-half:
Overtime Rate = Regular Hourly Rate × 1.5
To estimate overtime pay for a week or pay period, use the Overtime Pay Calculator.
The basic overtime calculation
If you work 46 hours in a week:
- Regular hours: 40
- Overtime hours: 6
If your hourly rate is $25:
- Overtime rate: $25 × 1.5 = $37.50
- Overtime pay: 6 × $37.50 = $225
Double time and other multipliers
Some employers or jurisdictions pay:
- double time (2.0×) after a higher threshold
- different multipliers for holidays or special shifts
If your overtime multiplier differs, you can still estimate total pay using:
Overtime vs salary: who is eligible?
Eligibility depends on role classification (exempt vs non-exempt), job duties, and wage rules. Many salaried roles are exempt, but not all.
If you want to compare hourly vs salary conversion, use the Salary to Hourly Calculator.
FAQ
Is overtime always time-and-a-half?
Often, but not always. Some workplaces pay different multipliers, and certain roles have different rules. Use 1.5× as a standard planning default.
Do I pay more taxes on overtime?
Overtime increases your income, so you may see higher withholding, but the tax you owe depends on total annual income. Model your full-year estimate with the After-Tax Income Calculator.
Why did my paycheck withholding jump on an overtime check?
Payroll withholding formulas can treat a bigger check as if you earn that amount every pay period, which can temporarily increase withholding.
Does overtime change my hourly rate?
It changes your overtime rate for overtime hours. Your base hourly rate remains the same.
How can I estimate my net overtime pay?
Estimate gross overtime pay with the Overtime Pay Calculator, then estimate net with the Paycheck Calculator.