How to Calculate Overtime Pay
Overtime arithmetic is straightforward once you know the eligible hours, regular rate, and multiplier—but eligibility and rate rules must be verified separately.
The basic overtime formula
For a simple hourly estimate, overtime pay = regular hourly rate × overtime multiplier × overtime hours. Total gross pay = regular pay + overtime pay.
Worked example
At $20 per hour with 40 regular hours and 5 overtime hours at 1.5×, regular pay is $800 and overtime pay is $150. Estimated gross pay is $950 before taxes and deductions.
What to verify first
The arithmetic does not determine who is eligible, which hours qualify, or what counts in the regular rate. These details vary by employment arrangement and jurisdiction. In the United States, consult current Department of Labor overtime guidance; elsewhere, use the relevant authority.
When the simple formula is insufficient
Bonuses, multiple rates, salary arrangements, daily rules, double time, and special agreements can change the calculation. Use authoritative records rather than assuming every situation uses 1.5× after 40 hours.
For a configurable estimate, use the Overtime Calculator.