Overtime Pay Calculator
Calculate your regular pay, overtime pay, total gross pay, and effective hourly rate. See weekly, biweekly, and monthly projections.
Quick Answer
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at 1.5x their regular rate for hours worked beyond 40 in a workweek. So at $25/hr, 10 hours of overtime earns $375 in OT pay (10 x $37.50), bringing weekly gross to $1,375. Some states and contracts provide double time for certain hours.
Results
Weekly Pay Breakdown
Regular vs. Overtime Pay
Overtime adds $375.00 (37.5% boost) to your weekly pay.
Pay Projections
Projections assume consistent hours every week. Actual pay may vary.
Important Note
This calculator shows gross pay before taxes and deductions. Federal income tax, state tax, Social Security (6.2%), and Medicare (1.45%) will reduce your take-home pay. Overtime income may push you into a higher tax bracket for the incremental earnings. Consult a tax professional for net pay estimates.
About This Tool
The Overtime Pay Calculator computes your regular pay, overtime pay, total gross earnings, and effective hourly rate based on your hourly wage, standard hours, overtime hours, and overtime rate multiplier. It also projects your earnings across weekly, biweekly, monthly, and annual periods to help you plan your finances and evaluate whether overtime is worth the extra hours.
How Overtime Pay Works Under the FLSA
The Fair Labor Standards Act (FLSA) is the federal law governing overtime pay in the United States. It requires employers to pay non-exempt employees at least 1.5 times their regular rate of pay for all hours worked beyond 40 in a single workweek. This is commonly called "time and a half." The regular rate includes not just the hourly wage but also non-discretionary bonuses, shift differentials, and certain other compensation. For example, if you earn $25 per hour, your overtime rate is $37.50 per hour. Working 10 hours of overtime in a week adds $375 to your paycheck beyond the $1,000 in regular pay, bringing the total to $1,375.
Who Qualifies for Overtime
Not all employees are entitled to overtime pay. The FLSA distinguishes between "exempt" and "non-exempt" employees. Non-exempt employees must receive overtime. Exempt employees, generally those in executive, administrative, or professional roles earning above a salary threshold (currently $35,568 per year under federal law, though many states set higher thresholds), are not entitled to overtime regardless of hours worked. Misclassification of employees as exempt is one of the most common wage theft violations. If you are hourly, you are almost always non-exempt. If you are salaried, your exemption status depends on your job duties and salary level, not just your title.
State Overtime Laws
Several states have overtime laws that exceed federal requirements. California is the most notable: it requires daily overtime (1.5x for hours 8-12 in a single day, 2x for hours beyond 12) in addition to weekly overtime. This means a California worker who works four 12-hour days receives daily overtime even though their weekly total is 48 hours, not just overtime for the 8 hours above 40. Other states with daily overtime include Alaska (after 8 hours), Colorado (after 12 hours), and Nevada (after 8 hours at less than 1.5x minimum wage). Some states also require double time for the 7th consecutive day worked. This calculator defaults to the federal standard of 1.5x but allows you to adjust the multiplier for state-specific or contractual rates.
The Real Cost of Overtime for Employers
From an employer's perspective, overtime is significantly more expensive than it appears. Beyond the 1.5x wage premium, employers pay additional payroll taxes (Social Security and Medicare) on overtime earnings, increased workers' compensation premiums (which are based on total payroll), and often higher costs from fatigue-related errors, accidents, and reduced productivity during extended shifts. Studies consistently show that productivity per hour declines significantly after 50 hours per week, and the accumulated fatigue from sustained overtime can actually result in less total output than a standard 40-hour week. This is why many employers hire additional staff rather than rely on overtime when demand consistently exceeds capacity.
Overtime and Tax Implications
A common misconception is that overtime is "taxed more" than regular pay. In reality, all income is taxed at the same marginal rates. What happens is that overtime increases your total income, which may push a portion of your earnings into a higher tax bracket. For example, if your regular pay puts you at the top of the 22% bracket, overtime earnings might be taxed at 24%. But only the amount exceeding the bracket threshold is taxed at the higher rate, not all of your income. The higher withholding on overtime paychecks is simply your employer estimating your annual income based on that paycheck's size, which often results in a tax refund when you file your return if overtime is irregular. This calculator shows gross pay; your net pay after taxes will depend on your filing status, deductions, and state tax rates.