Overtime Pay Calculator

Calculate overtime pay at time-and-a-half or any other multiplier, and its share of total pay.

About Overtime Pay Calculator

The premium rate is the base rate multiplied by the uplift, and total pay adds it to ordinary hours. Showing the premium as a share of total pay makes clear how much of the wage bill is discretionary. Overtime consistently above about 15% of the wage bill is usually cheaper to solve with another hire than to keep paying at a premium.

Formula

Overtime Pay

Overtime pay = base rate × multiplier × overtime hours

multiplier: Statutory or contractual uplift, e.g. 1.5 for time-and-a-half
base rate: Ordinary hourly rate

Worked example

With the default values below, Overtime Pay Calculator returns Overtime Pay of $300.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Base hourly rateminimum 0: 25
Overtime hours workedminimum 0 h: 8 h
Pay multiplieraccepts 1–4 x: 1.5 x
Normal hours in the periodminimum 0 h: 40 h

Results

Overtime Pay: $300.00
Effective Overtime Rate: $37.50
Pay for Normal Hours: $1,000.00
Total Pay for the Period: $1,300.00
Overtime as Share of Total Pay: 23.08%

Step by step

1Values used
2Overtime Pay
3Overtime Pay= 300.00
4Effective Overtime Rate= 37.50
5Pay for Normal Hours= 1,000.00
6Total Pay for the Period= 1,300.00
7Overtime as Share of Total Pay= 23.08

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges 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.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

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

Frequently Asked Questions

How is Overtime Pay calculated?

Overtime pay = base rate × multiplier × overtime hours The premium rate is the base rate multiplied by the uplift, and total pay adds it to ordinary hours. Showing the premium as a share of total pay makes clear how much of the wage bill is discretionary.

Why does Overtime Pay matter?

Overtime consistently above about 15% of the wage bill is usually cheaper to solve with another hire than to keep paying at a premium.

What values do I need to enter?

This calculator takes 4 inputs: Base hourly rate, Overtime hours worked, Pay multiplier, Normal hours in the period. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.