Overtime Pay Calculator

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Hours entry:

Base hourly rate:

{{ currencyPrefix }} per hour

Premium policy:

Payable-hour rounding:

Hour rounding direction:

Flat allowance or premium:

{{ currencyPrefix }}per pay period

Payroll label:

Display currency:

Pay component	Hours	Rate basis	Amount	Copy
{{ row.label }}	{{ row.hours }}	{{ row.rate }}	{{ row.amount }}

Measure	Before rounding	Payable	Context	Copy
{{ row.label }}	{{ row.before }}	{{ row.payable }}	{{ row.context }}

Check	Status	Evidence	Next action	Copy
{{ row.label }}	{{ row.status }}	{{ row.evidence }}	{{ row.action }}

Overtime pay depends on two separate decisions: which hours count as overtime and what premium applies to those hours. A familiar time-and-a-half calculation can be correct only after the workweek, daily limits, weekly limits, regular rate, exemptions, and any agreement-specific rules have been identified.

Some payroll records already contain regular and overtime totals. Others begin with daily hours and classify excess time against daily and weekly thresholds. When both tests apply, the same hour should not be counted twice. A weekly excess may add overtime only after hours already classified by a daily rule are removed from that excess.

Overtime pay concepts and their effect on an estimate
Decision	What it changes	Common mistake
Hours entry	Starts from known totals or classifies seven daily rows	Mixing a daily schedule with totals from a different workweek
Premium policy	Prices overtime in one or two tiers	Assuming a sample multiplier is the legal rule
Regular rate	Sets the pay basis for each hour	Using base hourly pay when other earnings must be included
Rounding	Changes payable regular and overtime totals before pay	Rounding in a way that systematically underpays time worked

Gross overtime pay is not the same as take-home pay. Taxes, deductions, benefits, payroll period rules, and currency conversion are outside this arithmetic. Laws also differ by jurisdiction and worker status, so an estimate should be checked against the applicable rule, agreement, and payroll record before it is used to settle wages.

How to Use This Tool:

Use one workweek or pay-period basis throughout the calculation and enter the pay rule that actually applies.

Choose Known regular and overtime hours when payroll has already classified the time, or choose the seven-day mode to apply entered daily and optional weekly thresholds.
Enter the hourly rate and hours. In seven-day mode, keep all daily rows in the same workweek and enable Weekly threshold only when that rule applies.
Select the Premium policy. The stepped option uses the first four overtime hours at 1.5× and the remainder at 2×; use Custom two-tier policy for other user-supplied caps and multipliers.
Choose payable-hour rounding only when the payroll policy permits it, then add any flat allowance that belongs outside the hourly calculations.
Compare Pay breakdown with Hours audit. Check Policy checks for weekly reclassification, tier use, and the rounding change before relying on gross pay.

Interpreting Results:

Gross pay is regular pay plus premium-tier pay and the flat allowance. Overtime premium amount isolates only the extra amount above straight-time pay for the overtime hours; it is smaller than total overtime pay whenever the multiplier is greater than 1.

Check Rounding change even when the gross total looks reasonable. A positive value added payable time, a negative value removed it, and zero means the selected increment did not change the combined hours. The display currency changes symbols and labels only; it does not convert the entered amounts or select a jurisdiction's law.

Technical Details:

Hour classification happens before premium pricing. In known-hours mode, the entered regular and overtime totals are accepted as already classified. In seven-day mode, each day's excess above the daily threshold is counted first, and an optional weekly test can add only excess that has not already been included as daily overtime.

Rule Core:

The classification order prevents daily and weekly tests from paying the same hour twice.

\begin{array}{rcl} O_{daily} & = & \sum_{d}^{7} \max (0, H_{d} - L_{daily}) \\ O_{weekly} & = & \max (0, H - L_{weekly} - O_{daily}) \\ O & = & O_{daily} + O_{weekly} \\ R & = & H - O \end{array}

Premium policy rules
Policy	Tier 1	Tier 2
Single	All overtime at 1.5×	None
Stepped	First 4 overtime hours at 1.5×	Remaining overtime at 2×
Custom	Entered hours cap and multiplier	Entered multiplier for the remainder

Formula Core:

Regular and overtime totals are rounded independently once, then each pay component is rounded to cents before the gross total is added.

\begin{array}{rcl} T_{1} & = & \min (O_{rounded}, K) \\ T_{2} & = & \max (0, O_{rounded} - T_{1}) \\ Gross & = & (R_{rounded} \times W) + (T_{1} \times W \times M_{1}) + (T_{2} \times W \times M_{2}) + A \end{array}

W is the entered hourly rate, K is the first-tier cap, M1 and M2 are the premium multipliers, and A is the flat allowance. Monetary components are rounded to two decimal places; the effective hourly rate and overtime share retain full calculation precision until display.

Responsible Use Note:

This calculator applies the thresholds and multipliers you enter. It does not determine overtime eligibility, exemptions, compensable time, the legal regular rate, or which payments belong in that rate. For U.S. federal coverage, overtime is generally due after 40 hours in a workweek at not less than 1.5 times the regular rate, but state law or an agreement may require a different or more protective rule. Confirm the governing jurisdiction and payroll basis before acting on the estimate.

Worked Examples:

Known hours at time and a half

At $30 per hour, 40 regular hours produce $1,200 and 6 overtime hours at 1.5× produce $270. With no allowance or hour rounding, gross pay is $1,470 and the overtime premium above straight-time pay is $90.

Daily hours already cover the weekly excess

Daily rows of 8, 9.5, 8, 10, and 8 hours total 43.5 hours. With an 8-hour daily threshold, 3.5 hours are already overtime. A 40-hour weekly test adds zero more because the 3.5-hour weekly excess has already been classified.

References:

Fact Sheet #23: Overtime Pay Requirements of the FLSA, U.S. Department of Labor, revised October 2019.
29 CFR 785.48: Use of time clocks, Electronic Code of Federal Regulations.