An overtime pay calculator helps you estimate how much you should earn when you work more than your regular hours. Enter your hourly wage, regular hours, and overtime hours to calculate your regular earnings, overtime pay, and total gross wages.
Under the general federal Fair Labor Standards Act (FLSA) rule, eligible nonexempt employees must receive at least 1.5 times their regular rate of pay for hours worked over 40 in a workweek. However, not every employee qualifies, and some states have additional overtime requirements.
This guide explains how overtime is calculated, shows practical examples, and helps you understand the difference between gross overtime pay and take home pay.
Key Takeaways
- Federal overtime generally starts after 40 hours worked in a workweek for eligible employees.
- The standard federal overtime rate is 1.5 times the regular rate of pay.
- Your overtime earnings depend on your hourly wage, hours worked, and applicable pay rules.
- Bonuses and other compensation can sometimes affect your regular rate.
- Gross overtime pay is not the same as the amount deposited into your bank account.
What Is an Overtime Pay Calculator?
An overtime pay calculator estimates the additional wages you earn for working beyond your regular schedule.
For most eligible hourly employees covered by federal law, overtime is paid at time and a half, meaning 150% of the regular hourly rate.
For example, if your hourly wage is $20
- Regular hourly rate $20
- Overtime multiplier 1.5
- Overtime hourly rate $30
- Pay for 5 overtime hours $150
Your final paycheck may also include regular wages, bonuses, commissions, deductions, and applicable taxes.
How to Calculate Overtime Pay
The standard federal time and a half formula is
OvertimeRate=RegularHourlyRate1.5
To calculate overtime earnings
\[ \text{Overtime Pay}=\text{Overtime Rate}\times\text{Overtime Hours} \]
To calculate total weekly gross pay
TotalPay=RegularPay+OvertimePay
These formulas assume a straightforward hourly employee whose regular rate equals their hourly wage and who receives no additional compensation that changes the regular rate.
Simple Overtime Calculation Example
Suppose you earn $18 per hour and work 45 hours in one workweek.
| Calculation | Amount |
| Regular hourly wage | $18 |
| Regular hours | 40 |
| Overtime hours | 5 |
| Overtime multiplier | 1.5 |
| Overtime hourly rate | $27 |
| Regular pay | $720 |
| Overtime pay | $135 |
| Total weekly gross pay | $855 |
Here is the calculation
- Regular pay 40 × $18 = $720
- Overtime rate $18 × 1.5 = $27
- Overtime pay 5 × $27 = $135
- Total gross pay $720 + $135 = $855
Your estimated weekly gross earnings are $855 before taxes and other deductions.
Realistic Example Calculating Overtime With a Higher Wage
Consider an employee earning $28 per hour who works 48 hours during a workweek.
First, calculate the overtime rate
\[ \$28\times1.5=\$42 \]
The employee worked 8 overtime hours.
| Pay component | Calculation | Earnings |
| Regular pay | 40 × $28 | $1,120 |
| Overtime pay | 8 × $42 | $336 |
| Total gross pay | $1,120 + $336 | $1,456 |
The employee earns $336 in overtime wages and $1,456 in total gross weekly pay.
This example assumes the employee qualifies for federal overtime and has no additional compensation affecting the regular rate.
How Does Federal Overtime Work in the United States?
The Fair Labor Standards Act (FLSA) establishes federal overtime requirements for covered, nonexempt employees.
Under the general federal rule
- Eligible employees receive overtime for hours worked over 40 in a workweek.
- Overtime must generally be paid at no less than 1.5 times the regular rate.
- A workweek is a fixed, recurring period of seven consecutive 24 hour days.
- Employers generally cannot average hours across two workweeks to avoid overtime.
Working on a Saturday, Sunday, holiday, or scheduled day off does not automatically qualify for federal overtime. The total hours worked in the applicable workweek generally determine eligibility.
Important Being paid a salary does not automatically make someone exempt from overtime. Job duties, salary basis, salary level, and applicable exemptions all matter.
As of November 2026, the Department of Labor identifies the federal standard salary level for the executive, administrative, and professional exemptions as $684 per week following the courts November 2024 vacatur of the 2024 overtime rule. The duties tests still matter, and state requirements may be more protective.
Check the current rules at the U.S. Department of Labor overtime guidance.
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Different Types of Overtime Pay
Not every workplace uses the same overtime arrangement. Federal law establishes a minimum requirement, while employers, contracts, and state laws can provide additional benefits.
| Overtime type | How it works |
| Standard overtime | 1.5 times the regular rate |
| Double time pay | 2 times the regular rate, when required by applicable law or agreement |
| Holiday overtime | Depends on applicable law and employer policy |
| Weekend overtime | Depends on hours worked and applicable rules |
| Daily overtime | Required in certain states and circumstances |
For example, some employees in California may qualify for daily overtime after working more than 8 hours in a workday, subject to applicable rules and exceptions.
Do not assume double time, holiday, or weekend premiums apply to every U.S. employee. Check your state labor department and employment agreement.
How Do Bonuses Affect Overtime Pay?
Your overtime rate may be higher than your basic hourly wage if you receive certain bonuses or additional compensation.
Under the FLSA, the regular rate generally includes compensation such as
- Nondiscretionary bonuses
- Certain commissions
- Piece rate earnings
- Other compensation that must legally be included
For example, an employee earns $800 in regular wages, receives a qualifying $100 nondiscretionary bonus, and works 45 hours.
The regular rate becomes
\[ \frac{\$800+\$100}{45}=\$20 \]
The additional half time overtime premium is
\[ \$20\times0.5\times5=\$50 \]
In this example, the employee has already received straight time compensation for all 45 hours through the $800 base wages and the bonus. The additional overtime premium due is $50.
This is why calculating overtime for employees who receive bonuses or commissions can require more than multiplying their base hourly wage by 1.5.
The Department of Labor explains these calculations in its Regular Rate of Pay Fact Sheet and Bonuses Under the FLSA.
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What Is the Difference Between Gross Overtime Pay and Take Home Pay?
Gross overtime pay is the amount earned before taxes and other deductions. Take home pay is the amount remaining after applicable deductions.
| Pay type | What it includes |
| Regular gross pay | Earnings for regular working hours |
| Overtime gross pay | Additional overtime compensation |
| Total gross pay | Regular earnings plus overtime earnings |
| Net pay | Earnings after applicable taxes and deductions |
Your actual paycheck can be affected by
- Federal income tax withholding
- Social Security and Medicare taxes
- State and local income taxes, where applicable
- Health insurance premiums
- Retirement contributions
- Other authorized payroll deductions
A higher overtime paycheck does not mean your entire overtime payment is taxed at a special higher rate. Federal income tax withholding can vary with your total wages and payroll calculations.
Is Overtime Tax Free in 2026?
There is a federal tax deduction for certain qualified overtime compensation under the One Big Beautiful Bill Act. However, the phrase no tax on overtime can be misleading.
For tax years 2025 through 2028, eligible individuals may deduct qualified overtime compensation that exceeds their regular rate of pay. For standard time and a half overtime, this generally means the additional half time premium, not the entire overtime payment.
The deduction has these limits
| Tax rule | Limit |
| Maximum deduction for an individual return | $12,500 |
| Maximum deduction for a joint return | $25,000 |
| Income phaseout begins for individual filers | $150,000 MAGI |
| Income phaseout begins for joint filers | $300,000 MAGI |
| Applicable tax years | 2025–2028 |
Other eligibility and reporting requirements apply. For tax year 2026, qualified overtime compensation generally needs to be separately reported on Form W 2, box 12, code TT.
Overtime wages remain subject to applicable payroll taxes, including Social Security and Medicare. The deduction also does not mean your employer automatically stops withholding federal income tax.
Check the IRS qualified overtime compensation guidance (August 2026) before claiming the deduction.
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Common Overtime Calculation Mistakes
Small mistakes can lead to incorrect paycheck estimates. Watch out for these issues
| Mistake | Why it matters |
| Counting all hours in a pay period together | Federal overtime is generally calculated separately for each workweek. |
| Using 2 instead of 1.5 | Double time is not the standard federal overtime rate. |
| Ignoring qualifying bonuses | Some bonuses change the regular rate used for overtime. |
| Assuming every salaried employee is exempt | Salary alone does not determine overtime eligibility. |
| Forgetting state overtime rules | State laws may provide additional overtime protections. |
| Confusing gross and net pay | Your actual deposit will usually be lower than gross earnings. |
Weekly Hours vs. Biweekly Pay Periods
Suppose you work 45 hours in the first week and 35 hours in the second week.
Your total is 80 hours over two weeks. However, you may still be entitled to 5 overtime hours for the first week.
You cannot simply average the two weeks to conclude that you worked 40 hours per week.
The Department of Labor explains that each workweek is treated separately under the general federal rule.
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Who Should Use an Overtime Pay Calculator?
An overtime pay calculator can be useful for
- Hourly employees Estimate earnings before your next paycheck.
- Part time employees Check whether additional hours create overtime eligibility.
- Full time workers Estimate weekly gross earnings when working extra shifts.
- Payroll administrators Perform basic payroll estimates.
- Job applicants Compare potential earnings when considering jobs with different schedules.
When Should You Use a Different Calculation?
A basic overtime calculator may not be sufficient if you
- Receive a fixed salary instead of hourly wages.
- Earn commissions or nondiscretionary bonuses.
- Work under a union agreement.
- Have a job with special federal overtime rules.
- Work in a state with daily overtime requirements.
- Have a legally recognized overtime exemption.
In these situations, review your employment arrangement and the applicable federal and state rules before relying on a simple estimate.
[INSERT CALCULATOR OR SCREENSHOT HERE]
Place your interactive overtime pay calculator here.
Recommended calculator inputs
- Regular hourly wage
- Regular weekly hours
- Overtime hours
- Overtime multiplier (default 1.5)
- Additional qualifying compensation, if supported
Recommended results
- Regular hourly rate
- Overtime hourly rate
- Regular earnings
- Overtime earnings
- Total estimated weekly gross pay
Include a short note explaining that the calculator provides an estimate and does not determine legal overtime eligibility or calculate exact take home pay.
Conclusion
An overtime pay calculator makes it easier to estimate your earnings when you work additional hours. Start with your regular hourly wage, enter your overtime hours, and apply the appropriate overtime rate.For a basic federal estimate, eligible employees generally receive 1.5 times their regular rate for hours worked beyond 40 in a workweek. Remember to account for qualifying bonuses, state requirements, and payroll deductions when comparing your estimate with your actual paycheck. Calculate your overtime earnings and compare the result with your employers pay statement. If the numbers do not match, review your recorded hours and ask your payroll department for an explanation.
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FAQs
How do I calculate overtime pay?
Multiply your regular hourly wage by 1.5 to find your standard overtime rate. Then multiply that rate by the number of overtime hours worked.
For example, $20 × 1.5 = $30 per overtime hour.
Is overtime always paid at 1.5 times the hourly rate?
No. Time and a half is the general federal minimum for eligible overtime hours. Certain state laws, employment agreements, and employer policies may require different or additional premiums.
How many hours do you have to work to get overtime?
Under the general federal FLSA rule, eligible nonexempt employees receive overtime after working more than 40 hours in a workweek. Some states have additional daily overtime requirements.
How much is overtime for $20 an hour?
At the standard 1.5 multiplier, an employee earning $20 per hour receives $30 per overtime hour. Five overtime hours would produce $150 in overtime pay.
Does overtime count toward weekly gross income?
Yes. Overtime earnings are generally included in gross wages. Your weekly gross income includes regular earnings and overtime compensation before applicable deductions.
Is overtime calculated daily or weekly?
Under the general federal FLSA rule, overtime is calculated by workweek, not simply by the number of hours worked in a day. Some states also require daily overtime in qualifying circumstances.
Is overtime tax free in 2026?
No, not entirely. Eligible taxpayers may claim a federal income tax deduction for qualified overtime compensation, generally the premium portion above their regular rate. Limits and eligibility requirements apply, and payroll taxes still apply.
Can salaried employees receive overtime?
Yes. Some salaried employees qualify for overtime. Their eligibility depends on applicable exemption rules, including their job duties and how they are paid. Being salaried does not automatically make someone exempt.
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