How overtime pay is calculated
Overtime pay is your normal hourly rate multiplied by an overtime rate for the extra hours you work. The most common rate is time and a half (1.5 times your rate), and some hours are paid at double time (2 times your rate).
The formula is: regular hours × hourly rate + overtime hours × hourly rate × 1.5 + double-time hours × hourly rate × 2. For example, at $20 an hour with 45 hours in a week under the 40-hour rule, you earn 40 × $20 = $800 regular pay and 5 × $20 × 1.5 = $150 overtime, so $950 in total. The calculator shows this formula under every result so you can check it.
US federal overtime rules
Under the Fair Labor Standards Act (FLSA), most hourly and some salaried employees in the US must be paid at least time and a half for hours worked over 40 in a single workweek. A workweek is a fixed period of seven consecutive days chosen by the employer; it does not have to start on Monday. Hours cannot be averaged over two weeks, so 30 hours one week and 50 the next means 10 hours of overtime in the second week.
Some employees are "exempt" from overtime, typically salaried staff in executive, administrative or professional roles above a salary threshold. If you are unsure whether you are exempt, check with your employer, the US Department of Labor or your state labor office.
California daily overtime
Several states add their own rules, and California's are among the most generous. Choose California and enter your hours for each day:
- Time and a half for hours over 8 in a workday, and for hours over 40 in the workweek.
- Double time for hours over 12 in a workday.
- On the seventh consecutive day worked in a workweek, time and a half for the first 8 hours and double time after that.
The calculator never pays the same hour twice: hours already paid as daily overtime do not count again towards the 40-hour weekly limit.
Overtime in the UK and Europe
UK law does not require employers to pay extra for overtime. Your contract sets the rate, which might be time and a half, double time on Sundays, or plain time. What the law does require is that your average pay for all the hours you work does not fall below the National Minimum Wage, and the Working Time Regulations limit average working hours to 48 a week unless you opt out.
Across the EU, the Working Time Directive also sets a 48-hour average weekly limit, while overtime pay rates are set by national law and collective agreements. Choose Custom, set the weekly hours after which overtime starts (for example 37.5 or 39), and enter the multiplier from your contract.
Common overtime mistakes to check
- Averaging hours across weeks. Under US federal law each workweek stands alone, so 30 hours one week does not cancel 50 the next.
- Forgetting unpaid time that counts. Required training, short breaks and work done before clocking in may count as hours worked.
- Leaving out bonuses. In the US, many bonuses and shift premiums must be included in the regular rate used for overtime.
- Counting the same hour twice. Daily overtime hours should not be added again to the weekly overtime total.
Salaried? Find your hourly rate first
If you are paid a salary, open I am paid a salary, enter your annual salary and contracted weekly hours, and the calculator divides the salary by 52 weeks and your weekly hours to get an hourly rate. Your employer may use a slightly different method, for example 260 working days a year, so treat the result as an estimate.
All results are gross pay before tax and deductions. Save the estimate as a PDF to compare with your payslip, and if the numbers do not match, ask your payroll team how they calculated your overtime. For a deeper explanation, read our guide on how overtime pay works.