QuietCalcsHow overtime pay is calculated
The formula is simple:
overtime rate = hourly rate × multiplier
overtime pay = overtime rate × overtime hours
Example: you earn $20/hour and work 6 hours of overtime at time and a half. Your overtime rate is $20 × 1.5 = $30/hour, so those 6 hours add $180 to that week's gross pay — on top of your $800 for the regular 40 hours.
Time and a half quick reference
| Hourly rate | Time and a half (1.5×) | Double time (2×) |
|---|---|---|
| $12.00 | $18.00 | $24.00 |
| $15.00 | $22.50 | $30.00 |
| $16.00 | $24.00 | $32.00 |
| $18.00 | $27.00 | $36.00 |
| $20.00 | $30.00 | $40.00 |
| $22.00 | $33.00 | $44.00 |
| $25.00 | $37.50 | $50.00 |
| $30.00 | $45.00 | $60.00 |
| $35.00 | $52.50 | $70.00 |
| $40.00 | $60.00 | $80.00 |
Who gets overtime in the U.S.?
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive at least 1.5× their regular rate for hours worked beyond 40 in a workweek. Most hourly workers are non-exempt. Exempt employees — typically salaried workers in executive, administrative, or professional roles above a salary threshold — aren't entitled to federal overtime. The exact salary threshold changes with rulemaking, so check the current figure at dol.gov if it matters to you.
Federal law has no daily overtime — only the 40-hour weekly trigger. But a handful of states add their own rules. California is the big one: over 8 hours in a day earns 1.5×, over 12 hours earns double time, and the seventh consecutive workday has its own premiums. Colorado, Alaska, and Nevada also have daily overtime rules in certain situations.
The "regular rate" is more than base pay
One detail that surprises people: overtime is computed on your regular rate, which legally includes most non-discretionary bonuses, commissions, and shift differentials — not just your base hourly wage. If you earn a production bonus, your true overtime rate is slightly higher than base × 1.5. Payroll departments handle this, but it's worth knowing if you're checking their math.
Frequently asked questions
Is overtime taxed at a higher rate?
No — overtime dollars are ordinary income taxed at the same rates as regular wages. Withholding on a big overtime check can be higher, which creates the illusion, but it evens out when you file. Note: U.S. tax law added a temporary federal income-tax deduction for qualified overtime premium pay (2025–2028, with income caps) — ask a tax professional how it applies to you.
What is time and a half of $18 an hour?
$27 an hour. Multiply any hourly rate by 1.5 to get the time-and-a-half rate.
Do salaried employees ever get overtime?
Yes — being salaried is not the same as being exempt. Salaried employees below the FLSA salary threshold, or whose duties don't meet an exemption test, are still owed overtime.
When is double time required?
Federal law never requires double time — it's a matter of state law (California requires it past 12 hours in a day) or your employment agreement, often for holidays.
Does overtime count toward retirement contributions?
Usually yes — 401(k) deferrals typically come out of total eligible pay including overtime, unless your plan document says otherwise. Check your plan's definition of compensation.
Can I use this with pounds, euros, or other currencies?
Yes — pick your currency in the calculator and all results format accordingly. The arithmetic is identical everywhere. Just note that the rules described on this page (1.5× after 40 hours) are U.S. federal law; in the UK and much of Europe, overtime premiums come from your employment contract rather than statute.
Related calculators
Time Card Calculator — total your weekly hours from clock-in/clock-out times first, then bring the overtime hours here.
Coast FIRE Calculator — put that overtime money to work and see how much sooner your portfolio can coast.