How overtime pay is calculated
Overtime pay is the base hourly rate multiplied by a premium, applied only to hours above a threshold. The standard formula is:
Gross pay = (regular hours × rate) + (overtime hours × rate × multiplier)
So someone earning $22/hour who works 46 hours in a week with a 40-hour threshold and a 1.5× multiplier is paid 40 × $22 = $880 for regular hours, plus 6 × $22 × 1.5 = $198 of overtime, for $1,078 gross.
The single most common mistake is multiplying all hours by the overtime rate. Only the hours above the threshold carry the premium.
Time and a half, double time, and the rest
| Name | Multiplier | $20/hr becomes | Typically applies to |
| Regular | 1.0× | $20.00 | Hours below the threshold |
| Time and a quarter | 1.25× | $25.00 | Shift premiums in some agreements |
| Time and a half | 1.5× | $30.00 | The standard overtime rate in most places |
| Double time | 2.0× | $40.00 | Very long days, holidays, seventh consecutive day |
| Double time and a half | 2.5× | $50.00 | Public holidays under some awards |
Common thresholds
Set the thresholds to match your own contract or jurisdiction — the defaults are the US federal weekly rule, not a universal one.
| Where | Typical rule |
| US federal (FLSA) | 1.5× after 40 hours in a workweek. No daily requirement, and no federal double-time rule. |
| California | 1.5× after 8 hours in a day or 40 in a week; 2× after 12 hours in a day, and after 8 hours on a seventh consecutive workday. |
| Canada (most provinces) | 1.5× after 40 or 44 hours a week, varying by province. |
| United Kingdom | No statutory overtime premium. Whatever your contract says is what applies, subject to the working-time rules. |
| Australia | Set by the relevant modern award or agreement — commonly 1.5× for the first two or three hours, then 2×. |
This is a calculator, not legal advice. Overtime entitlement depends on your classification (exempt or non-exempt), your award or contract, and local law. If your pay looks wrong, check the rule that actually applies to you before relying on any figure here.
Daily versus weekly thresholds
Where both a daily and a weekly rule exist, hours are not counted twice. The usual order is: apply the daily rule first, then test whatever regular hours remain against the weekly threshold. The weekly timesheet calculator does exactly this across a real seven-day grid, which is the easier way to handle it if your days are uneven.
Worked example
A warehouse worker in California earns $24/hour and works 10, 10, 13, 8 and 8 hours across five days — 49 hours in total.
- Double time: 1 hour (the 13-hour day, above 12).
- Daily overtime: 2 + 2 + 4 = 8 hours (each day above 8, up to 12).
- Regular: 49 − 1 − 8 = 40 hours. The weekly 40-hour rule adds nothing further, because those overtime hours have already been taken out.
- Gross: (40 × $24) + (8 × $36) + (1 × $48) = $960 + $288 + $48 = $1,296.
Frequently asked questions
How do I calculate time and a half?
Multiply the base hourly rate by 1.5, then multiply by the number of overtime hours. At $20/hour, time and a half is $30/hour, so six overtime hours are worth $180.
Is overtime paid on all my hours or only the extra ones?
Only the hours above the threshold. At 46 hours with a 40-hour threshold, 40 hours are paid at the base rate and 6 at the premium rate.
What is the overtime threshold in the US?
Under the federal Fair Labor Standards Act, non-exempt employees get 1.5× their regular rate for hours over 40 in a workweek. There is no federal daily threshold, but several states — California and Alaska among them — add one.
Does the calculator handle double time?
Yes. Set the double-time threshold above the overtime threshold and hours beyond it are priced at the double-time multiplier, with the bands kept separate in the breakdown.
Do bonuses change my overtime rate?
They can. In the US, non-discretionary bonuses and shift differentials must be folded into the “regular rate” before the 1.5× is applied, so the true overtime rate may be higher than 1.5× the base hourly figure. This calculator uses the base rate you enter.
Is the result take-home pay?
No, it is gross. Tax, social insurance and any other deductions are taken afterwards, and overtime often pushes a pay period into higher withholding even when the annual rate does not change.
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