Solo Biz Soft Editorial Team Overtime is extra pay for hours worked beyond a normal week, usually at a higher rate. The calculation is simple once you know your hourly rate and your overtime multiplier.
The formula
Overtime pay = hourly rate × overtime multiplier × overtime hours. Add regular pay (rate × regular hours) to get total pay.
Step by step
- Find your regular hourly rate.
- Multiply it by the overtime multiplier to get the overtime rate.
- Multiply the overtime rate by the overtime hours.
- Add regular pay to get total gross pay.
Worked example
At 20 an hour with 40 regular hours and 8 hours at time and a half: regular pay 800; overtime rate 30, so overtime pay 240; total 1,040.
Common mistakes
- Applying the multiplier to all hours instead of only the overtime hours
- Not checking when overtime starts under your contract or local rules
- Forgetting that this is gross pay before tax
Skip the maths: use our free overtime pay calculator. To turn hours into a year’s pay, use the hourly to salary calculator.
Frequently asked questions
What is time and a half?
Overtime paid at 1.5 times your normal rate.
Do salaried workers get overtime?
It depends on the country and the type of job. Check local rules and your contract.
Is overtime taxed more?
Overtime is taxed like other income, but it may push you into a higher tax band for that period in some systems.
More free tools: browse all our free calculators.
This article is general information only. Overtime rules differ by country and contract.