How to Calculate Overtime Pay (Formula and Examples)
Updated October 5, 2026
To calculate overtime pay, multiply your regular hourly rate by the overtime multiplier, then multiply by your overtime hours. At time and a half, someone earning $20 an hour gets $30 for each overtime hour. Add that to your regular pay and you have your total for the week.
This guide gives you the formula, worked examples, a quick reference table and the basic rules in the US, UK and Europe. If you would rather skip the maths, enter your numbers in our overtime pay calculator.
The overtime pay formula
Overtime rate = regular hourly rate x multiplier
Total pay = (regular hours x regular rate) + (overtime hours x overtime rate)
- Find your regular hourly rate.
- Multiply it by the multiplier (1.5 for time and a half, 2 for double time).
- Multiply the result by your overtime hours.
- Add your regular pay for the normal hours.
Overtime pay examples
Example 1: time and a half. You earn $18 an hour and work 45 hours. The first 40 hours pay $720. The 5 overtime hours pay $27 each, which is $135. Your total is $855.
Example 2: a longer week. You earn $25 an hour and work 48 hours. Regular pay is $1,000. Overtime is 8 x $37.50 = $300. Your total is $1,300.
Example 3: double time. You earn $22 an hour and work 10 hours at double time. The overtime rate is $44, so those hours pay $440.
Weekly overtime pay at time and a half
This table shows only the overtime portion, not your regular pay.
| Hourly rate | Overtime rate (1.5x) | 5 overtime hours | 10 overtime hours |
|---|---|---|---|
| $15 | $22.50 | $112.50 | $225 |
| $20 | $30.00 | $150 | $300 |
| $25 | $37.50 | $187.50 | $375 |
| $30 | $45.00 | $225 | $450 |
Working 5 overtime hours every week at $20 an hour adds $150 a week, or $7,800 over a year. See how that changes your yearly income in our guide to $20 an hour as a yearly salary.
Time and a half versus double time
Time and a half means 1.5 times your regular rate and is the most common overtime rate. Double time means twice your regular rate. It is often used for holidays, very long shifts or when a contract or union agreement says so. Some states in the US require double time after a certain number of hours in a day, so always check which rule applies to you.
How to calculate overtime for salaried employees
Being paid a salary does not always mean you are exempt from overtime. In the US, many salaried workers are classed as non-exempt and are still owed overtime. To find the regular hourly rate, divide the weekly salary by the hours the salary is meant to cover, usually 40.
A non-exempt employee on $1,000 a week has a regular rate of $25. If they work 46 hours, the 6 extra hours at time and a half pay $37.50 each, which is $225. The total is $1,225. Use our salary to hourly calculator to find your hourly rate first.
Do bonuses count toward overtime?
In the US, certain bonuses, such as non-discretionary production or attendance bonuses, must be included when working out your regular rate. Say you earn $20 an hour, work 45 hours and get a $100 non-discretionary bonus. Your pay before the overtime premium is $1,000, so your regular rate is $1,000 / 45 = $22.22. The extra half-time premium for 5 hours is about $55.56, bringing the total to about $1,055.56. Rules on what counts are detailed, so ask payroll if you think your bonus was ignored.
Overtime rules in the United States
Under the federal Fair Labor Standards Act, most non-exempt employees must be paid at least one and a half times their regular rate for hours worked over 40 in a workweek. Some states add their own rules, such as California’s daily overtime. Whether you are exempt depends on your duties and pay, not only your job title. The US Department of Labor and your state labour office explain the current rules.
Overtime rules in the UK and Europe
In the UK there is no general legal right to overtime pay. What you get depends on your contract. Your average pay must still meet the National Minimum Wage, and the Working Time Regulations set limits on working hours, including an average 48-hour week unless you opt out. In other European countries, overtime premiums and limits are set by national law or collective agreements, so they differ widely. Check your contract and local rules.
Is overtime taxed more?
No. Overtime is taxed like the rest of your income. A larger paycheck may have more withheld, which makes it feel as if overtime is taxed harder, but any difference is settled at tax time or through payroll. Use an official estimator, such as the IRS Tax Withholding Estimator or GOV.UK tools, for your real take-home pay.
How to check your overtime is correct
- Keep your own record of start and finish times.
- Check that your payslip shows overtime hours separately, with the rate used.
- Make sure the multiplier matches your contract or local law.
- Ask payroll to explain any difference and keep copies of your payslips.
Planning your income? Try the hourly to salary calculator or model a raise with the pay raise calculator.
Frequently asked questions
How do you calculate time and a half?
Multiply your regular hourly rate by 1.5. At $20 an hour, time and a half is $30 an hour.
How is overtime calculated per week?
Overtime hours are the hours you work beyond the weekly limit, usually 40 in the US. Multiply them by your overtime rate and add your regular pay.
Is overtime paid after 8 hours or 40 hours?
In most US states it is paid after 40 hours in a week. A few states, such as California, also pay overtime after a set number of hours in a day.
Do salaried employees get overtime?
Some do. Non-exempt salaried employees in the US are owed overtime. Exempt employees are not, depending on duties and pay.
This article is for information only and is not legal, tax or financial advice. Overtime rules vary by country, state and job type, so check official sources.