How to Calculate Overtime Pay from an Hourly Rate

Separate regular pay from overtime pay, and use the multiplier that applies to the estimate you are making.

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To estimate gross overtime pay, calculate regular pay and overtime pay separately: regular hours × regular hourly rate, plus overtime hours × regular rate × the multiplier you select. Add the two amounts for estimated gross pay before deductions.

Worked example using an entered multiplier

Suppose an estimate uses a $24 hourly rate, 40 regular hours, five overtime hours, and a 1.5 multiplier. Regular pay is 40 × $24 = $960. The example overtime rate is $24 × 1.5 = $36 per hour, so overtime pay is 5 × $36 = $180. The combined gross estimate is $1,140.

This is arithmetic using selected inputs, not a determination that the hours qualify for overtime or that a particular multiplier applies. Rules may depend on jurisdiction, worker classification, work period and how regular-rate pay is calculated. Verify the applicable rules with an authoritative source or payroll professional.

Keep hours tracking separate from pay rules

First make sure the regular and overtime hour counts are appropriate for the period and rules that apply. The Time Card Calculator can total entered shifts and breaks. Its total hours are not, by themselves, a legal classification of payable overtime.

The Overtime Pay Calculator applies the rate, hours and multiplier you enter. If your pay basis is annual salary, convert the salary to an hourly equivalent only when that is a valid input for the method you are checking; the salary-versus-hourly guide explains the assumptions behind that conversion.

Use the result as a gross-pay estimate

Gross pay is before taxes, benefits, deductions and other payroll adjustments. Bonuses or other compensation may affect a regular-rate calculation under applicable rules. Compare the estimate with your employer’s pay statement and the rules for your situation.