Overtime Income

Free Overtime Income calculator with clear step-by-step results.

About Overtime Income

Overtime is paid at a premium but taxed at your marginal rate, which is usually higher than your average rate. The figure that actually matters is net pay per overtime hour - often much closer to the base rate than the multiplier suggests.

Formulas

Gross overtime

Gross = overtime hours x rate x multiplier + double-time hours x rate x 2

Net per overtime hour

Net rate = gross overtime x (1 - marginal tax rate) / total overtime hours

Worked example

With the default values below, Overtime Income returns Extra take-home per week of $261.12. Change any input above and every figure here is recalculated in your browser.

Inputs used

Base hourly rateminimum 0 $/h: 24 $/h
Standard hours per weekaccepts 1–60 h: 38 h
Overtime hours per weekaccepts 0–60 h: 8 h
Overtime multiplieraccepts 1–3 x: 1.5 x
Hours at double timeaccepts 0–40 h: 2 h
Marginal tax rate on the extra payaccepts 0–70 %: 32 %

Results

Extra take-home per week: $261.12
Gross overtime pay: $384.00
Total gross pay for the week: $1,296.00
Net pay per overtime hour: $26.11

Step by step

1Values used
2Gross overtime
3Net per overtime hour
4Extra take-home per week= $261.12
5Gross overtime pay= $384.00
6Total gross pay for the week= $1,296.00
7Net pay per overtime hour= $26.11/h

Assumptions and limits

The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Overtime entitlements, maximum working hours and premium rates are set by employment law and collective agreements that vary by jurisdiction. Tax shown is a simple marginal estimate.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Overtime entitlements, maximum working hours and premium rates are set by employment law and collective agreements that vary by jurisdiction. Tax shown is a simple marginal estimate.

Frequently Asked Questions

Why is my overtime taxed so heavily?

It stacks on top of your regular income, so it is taxed entirely at your top marginal rate rather than benefiting from lower bands already used by base pay.

Does overtime affect pension or benefits?

Sometimes. Some schemes contribute on total earnings and others only on base salary, and additional income can taper means-tested benefits. Check your scheme rules.