How do you calculate overtime pay?
1.5×regular rate
Common federal overtime multiplier
For a simple hourly-rate estimate, overtime pay is overtime hours × regular rate × 1.5. Add straight-time pay for the regular hours to get total gross pay.
Total gross pay = regular hours × rate + overtime hours × rate × multiplier
- Count hours inside one fixed workweek.
- The general federal threshold is more than 40 hours for covered, nonexempt employees.
- The legal regular rate can include compensation beyond base hourly pay.
- Taxes and deductions come after gross pay is calculated.
$20 per hour for a 45-hour workweek
| Part | Calculation | Amount |
|---|---|---|
| Regular pay | 40 × $20 | $800 |
| Overtime rate | $20 × 1.5 | $30/hour |
| Overtime pay | 5 × $30 | $150 |
| Total gross pay | $800 + $150 | $950 |
Overtime calculator
This overtime pay calculator works out your overtime rate, overtime pay and total weekly gross pay from your hourly rate and hours.
Step 1: identify the workweek
Use the employer’s fixed seven-day workweek. Under the general federal rule, separate weeks are not averaged to remove overtime.
Step 2: find the applicable regular rate
A single hourly wage is easy, but some bonuses, commissions, differentials and multiple rates may belong in the legal regular rate.
Step 3: classify the hours
Subtract the applicable threshold from total hours. State daily overtime rules can create premium hours even when the weekly total is below 40.
Step 4: verify the pay statement
Compare the regular hours, premium hours, rates and gross totals. Withholding and deductions are separate from the gross-pay formula.
Frequently asked questions
What is the overtime formula?
Overtime pay equals overtime hours multiplied by the applicable regular rate and overtime multiplier.
What is 5 hours of overtime at $20 per hour?
At 1.5×, the overtime rate is $30 per hour and five overtime hours pay $150.
Do I calculate overtime monthly?
The general federal calculation is weekly. Pay periods may be longer, but each fixed workweek is evaluated separately.