Overtime Pay Calculator
What extra hours are worth at your overtime rate, and what they cost you per hour of your time.
Overtime is paid at a premium and often costs more of you than it pays. The useful question is not what the shift is worth but what the extra hour is worth once tax is taken off.
Enter your rate, the overtime multiplier and the extra hours, and this calculator shows the gross and net value of the overtime, per month and per year.
At a glance
- What you enter
- Your normal hourly rate, Overtime multiplier, Overtime hours per week, Weeks worked per year, Effective tax rate, Extra commute cost per overtime day
- What you get
- Overtime per year, Net overtime per year, Net overtime per month, Net value per overtime hour, Net overtime after extra costs, Value per hour after costs
- Formula shown
- Yes - every step, right below your results.
- Cost and privacy
- Free, no account needed, and nothing you type is stored.
See worked examples ↓ Read the FAQ ↓ Share this calculator ↓
Results are estimates for general information only - always verify with a professional or official source before acting on them.
How to use the Overtime Pay Calculator
- 1 Enter Your normal hourly rate
- 2 Enter Overtime multiplier - 1.5 for time and a half, 2 for double time.
- 3 Enter Overtime hours per week (hours)
- 4 Enter Weeks worked per year (weeks)
- 5 Enter Effective tax rate
- 6 Enter Extra commute cost per overtime day - Travel and meals you would not otherwise pay for.
- 7 Press Calculate. You get Overtime per year, Net overtime per year, Net overtime per month, Net value per overtime hour, Net overtime after extra costs, Value per hour after costs, and every intermediate step stays visible under “How is this calculated?”
- 8 Change one number at a time to see what moves the result - that is usually the most useful thing a calculator can tell you.
Worked examples
Real numbers run through this calculator. Open any example to load it into the form above and change it.
Six extra hours a week at time and a half on $22 an hour
One overtime day a week with a real travel and meal cost attached to it.
You enter
- Your normal hourly rate
- $22.00
- Overtime multiplier
- 1.50
- Overtime hours per week
- 6 hours
- Weeks worked per year
- 48 weeks
- Effective tax rate
- 28%
- Extra commute cost per overtime day
- $18.00
You get
- Overtime per year
- $9,504.00
- Net overtime per year
- $6,842.88
- Net overtime per month
- $570.24
- Net value per overtime hour
- $23.76
- Net overtime after extra costs
- $5,978.88
- Value per hour after costs
- $20.76
The overtime rate is $33 an hour, so six extra hours are $198 a week, $792 a month and $9,504 a year before tax. After 28% tax you keep $6,842.88 a year, or $570.24 a month, which is $23.76 for each extra hour. The extra costs come to $864 over the 288 overtime hours, so the net after costs is $5,978.88, or $20.76 an hour.
Twelve extra hours a week at double time on $28 an hour
A heavier pattern of twelve hour days that pays well and costs a lot to service.
You enter
- Your normal hourly rate
- $28.00
- Overtime multiplier
- 2
- Overtime hours per week
- 12 hours
- Weeks worked per year
- 36 weeks
- Effective tax rate
- 32%
- Extra commute cost per overtime day
- $26.00
You get
- Overtime per year
- $24,192.00
- Net overtime per year
- $16,450.56
- Net overtime per month
- $1,370.88
- Net value per overtime hour
- $38.08
- Net overtime after extra costs
- $15,514.56
- Value per hour after costs
- $35.91
Double time pays $56 an hour, so twelve extra hours are $672 a week, $2,016 a month and $24,192 a year. Tax at 32% leaves $16,450.56 a year, which is $1,370.88 a month or $38.08 an hour. The extra costs of $936 over 432 overtime hours reduce that to $15,514.56, which is $35.91 for each extra hour.
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Frequently asked questions
Is overtime taxed at a higher rate than my normal pay?
Not by a special rule, but it often feels that way. Overtime is added on top of your normal pay, so it is taxed at your marginal rate rather than at the average rate your whole income attracts, and that rate is higher.
Because this calculator takes one effective rate for everything, entering your marginal rate gives a more honest answer for overtime than entering your average rate. If a rise in earnings would also reduce a benefit or an allowance, the real figure is lower than either line here.
Should the extra commute cost go in, and what belongs there?
Yes, because an overtime day usually costs more than a normal one. Travel is the obvious item, but meals bought near work, parking, a taxi home when the last train has gone and childcare that has to stretch an extra hour all belong in the same field.
The field is charged once for each working week in the year, on the assumption of one overtime day a week. If you work two overtime days a week, enter double the daily cost, or halve the weeks and treat each as two days.
How is the value per hour after costs worked out?
It takes the net overtime for the year, subtracts the extra costs of doing it, and divides the result by the overtime hours in the year. At $22 an hour on time and a half, six extra hours a week for 48 weeks is $9,504 gross and $6,842.88 net at a 28% rate; after $864 of extra costs the figure is $5,978.88, which is $20.76 for each of the 288 extra hours.
Compare that with what you would otherwise be doing. If the hours come out of sleep, time with family or paid work elsewhere, the net per hour line is the number to weigh against that.
What if my employer pays a flat bonus instead of an hourly premium?
Convert it. A flat bonus for a set number of extra hours is that bonus divided by the hours, and the result can be checked against your normal rate. A $300 bonus for 12 extra hours is $25 an hour before tax, which is worth having at a $22 rate and not worth having at a $40 one.
Enter the equivalent hourly rate as your normal rate and leave the multiplier at 1, or set the multiplier to the ratio the bonus represents. Either way, put the real hours in, because the hours are what the pay is being exchanged for.