How to Calculate Overtime Pay: Step-by-Step Formula, Examples, and Rules
Last Updated: 2026-04-17
To calculate overtime pay, find your regular hourly rate, multiply it by 1.5 to get your overtime rate, count all overtime hours, then multiply overtime hours by the overtime rate. Add that amount to your regular pay.
Step-by-Step Overtime Formula
Most workers only need five steps to calculate overtime correctly. Federal overtime is based on the workweek, not the day, unless your state adds daily overtime rules.
Find your regular hourly rate
Hourly workers use their hourly wage. Salaried non-exempt workers usually divide weekly salary by 40 hours to estimate the regular rate.
Calculate time and a half
Multiply the regular rate by 1.5. If your hourly rate is $20, your overtime rate is $30.
Count overtime hours
Under FLSA, count every hour over 40 in the workweek. Do not average two weeks together.
Multiply overtime hours by the overtime rate
If you worked 8 overtime hours at $30 per hour, your overtime pay is $240.
Add regular pay and overtime pay
Regular pay covers the first 40 hours. Add overtime pay on top to get total gross pay before taxes.
Regular Pay = Regular Hours × Regular Rate
Overtime Rate = Regular Rate × 1.5
Overtime Pay = Overtime Hours × Overtime Rate
Total Gross Pay = Regular Pay + Overtime Pay + Double Time Pay
Core formula
How Time and a Half Works
Time and a half means 150% of your regular rate. It is the federal minimum overtime premium for non-exempt workers.
$18/hour example
$18 × 1.5 = $27/hour overtime rate
$25/hour example
$25 × 1.5 = $37.50/hour overtime rate
$32/hour example
$32 × 1.5 = $48/hour overtime rate
What Counts in Your Regular Rate
A common mistake is using only the base hourly wage. For many workers, the regular rate includes more than that.
Usually included
- Base hourly wage
- Non-discretionary bonuses
- Shift differentials
- Commissions
Usually excluded
- Expense reimbursements
- Holiday gifts
- Benefits contributions
- Extra pay that is already overtime premium
How to Count Overtime Hours
An overtime hours calculator helps only if the inputs are right. The main job is deciding which hours belong in regular time, overtime, and double time.
Federal rule
Count all hours over 40 in a fixed 7-day workweek.
No averaging
A 50-hour week followed by a 30-hour week still creates 10 overtime hours in week one.
State rules can be stricter
California also adds daily overtime after 8 hours and double time after 12 hours in a day.
Keep categories separate
Regular hours, 1.5x overtime hours, and 2x double-time hours should be tracked separately when required.
Need a faster way to check your hours?
Use the calculator below for federal overtime, or switch to the California version if you need daily overtime and 7th-day rules.
Worked Examples
These examples show the same formula across different pay setups.
Hourly worker, 46 hours
40 × $20 = $800 regular pay
$980 gross pay
Six hours over 40 are paid at time and a half.
Hourly worker, 52 hours
40 × $25 = $1,000 regular pay
$1,450 gross pay
The overtime rate is $25 × 1.5 = $37.50.
Salaried non-exempt worker
$22.50 × 1.5 = $33.75 overtime rate
$1,068.75 gross pay
Salary does not automatically remove overtime eligibility.
Common Calculation Mistakes
Averaging hours across weeks
Overtime is calculated week by week. You cannot offset one long week with one short week.
Using the wrong regular rate
Bonuses, commissions, and shift premiums can raise the rate used for overtime.
Mixing up gross pay and take-home pay
The overtime formula gives gross pay. Tax withholding changes the paycheck amount afterward.
Using federal rules for California shifts
California adds daily overtime and double time, so a plain weekly calculator can undercount pay.
Need the broader overtime rules too?
Read the full overtime guide for eligibility, federal-versus-state rules, and examples that go beyond the core formula.
Frequently Asked Questions
Overtime pay equals overtime hours multiplied by the regular rate multiplied by 1.5. Then add that amount to regular pay for total gross earnings.
Multiply your regular hourly rate by 1.5. For example, $24/hour becomes $36/hour for overtime.
For a non-exempt salaried worker, divide weekly salary by 40 to estimate the regular rate, then apply the same overtime formula to hours over 40.
Many non-discretionary bonuses and commissions do. They can increase the regular rate used for overtime calculations.
Only partly. California also uses daily overtime and double time rules, so the dedicated California calculator is more accurate for that state.