Overtime Pay Calculator
Note: A 1.5× multiplier applies to hours over 40. The tax saving is only an estimate (federal deduction cap: $12,500, or $25,000 for married filers). For final figures, check with your payroll department or a tax professional.
Our Overtime Pay Calculator helps you estimate how much you can earn from overtime work. For covered, non-exempt employees under the Fair Labor Standards Act (FLSA), overtime is generally paid at a rate of at least 1.5 times the regular rate for hours worked over 40 in a workweek.
Use the calculator to estimate your regular pay, overtime pay, total earnings, and potential overtime compensation.
Note: Overtime eligibility and overtime rates can vary depending on employee classification, state law, employer policies, and other applicable rules. This calculator provides an estimate and should not be considered legal or tax advice.
How to Calculate Overtime Pay
The basic overtime calculation is straightforward when an employee is eligible for time-and-a-half overtime.
Overtime Pay Formula
Overtime Pay = Overtime Hours × Hourly Rate × 1.5
Example
Suppose your regular hourly rate is $20 and you work 5 hours of overtime.
5 × $20 × 1.5 = $150
Therefore, your overtime earnings for those 5 hours would be $150.
Your regular hourly rate remains $20, while your overtime rate becomes $30 per hour.
Overtime Pay Rate:
In many cases, the overtime payment rate is 1.5 times the regular hourly rate. This is commonly known as “time and a half.”
For example
- Regular hourly rate: $20
- Overtime multiplier: 1.5×
- Overtime rate: $30/hour
The FLSA generally requires covered, non-exempt employees to receive at least time-and-a-half for hours worked over 40 in a workweek.
However, some employees may be exempt from federal overtime requirements, and some states have additional overtime protections.
Special Points About Overtime Pay
Several factors can affect how overtime is calculated. Consider the following points when using an overtime calculator.
Holiday and Weekend Overtime
Some employers or state laws may provide additional compensation for work performed on holidays, weekends, or other special days.
However, federal FLSA rules do not automatically require extra pay simply because an employee works on a Saturday, Sunday, or holiday. Overtime is generally based on hours worked over 40 in the workweek for covered, non-exempt employees.
Some employers may voluntarily offer higher rates, including double time, under company policies, employment agreements, or applicable state rules.
Salaried Employees and Overtime
Salaried employees can sometimes be entitled to overtime, depending on their job duties, salary basis, and applicable exemption rules.
Being paid a salary does not automatically mean an employee is exempt from overtime. Certain executive, administrative, professional, outside-sales, and computer employees may qualify for exemptions when they meet the applicable requirements.
Therefore, overtime eligibility should be determined based on the employee’s classification and applicable federal and state requirements.
Overtime Pay
Overtime pay is additional compensation earned for working beyond the hours covered by an employee’s regular schedule.
Under the FLSA, covered non-exempt employees generally must receive overtime pay at not less than 1.5 times their regular rate for hours worked over 40 in a workweek.
The exact rules can vary depending on the employee’s classification, state laws, employment agreement, and other applicable requirements.
Overtime Pay for $20 an Hour
If you earn $20 per hour, your standard time-and-a-half overtime rate would be:
$20 × 1.5 = $30 per hour
Therefore:
- Regular rate = $20/hour
- Overtime rate = $30/hour
- Double-time rate = $40/hour
Double time is not automatically required under the federal FLSA simply because an employee works overtime. It may apply under certain state laws, employer policies, contracts, or other arrangements.
Calculate Double Time
If an employer or applicable rule provides double-time pay, you can calculate the rate by multiplying the regular hourly rate by 2.
Formula:
Double-Time Rate = Regular Hourly Rate × 2
Example:
If you earn $20 per hour:
$20 × 2 = $40 per hour
Therefore, the double-time rate would be $40 per hour.
How Is Overtime Calculated?
Under federal law, covered non-exempt employees generally receive at least 1.5 times their regular rate for hours worked over 40 in a workweek.
Overtime Pay Formula
Overtime Pay = Overtime Hours × Hourly Rate × 1.5
Example
Suppose your regular hourly wage is $20 and you work 5 hours of overtime.
5 × $20 × 1.5 = $150
Therefore, your overtime earnings for those 5 hours would be:
$150
Overtime Pay Example
| PAY TYPE | RATE | HOURS | TOTAL |
|---|---|---|---|
| Standard | $10 | 40 | $400 |
| Overtime | $15 | 10 | $150 |
| Total Pay | — | 50 | $550 |
In this example:
- Regular pay = $400
- Overtime rate = $15/hour
- Overtime pay = $150
- Total weekly pay = $550
Avoiding Errors in Overtime Calculations
Maintaining accurate overtime records is important for both employees and employers.
Incorrect overtime calculations can lead to:
- Underpayment of wages
- Payroll corrections
- Employee disputes
- Compliance problems
- Potential financial penalties
Employers should maintain accurate records of hours worked and use the applicable regular-rate rules when calculating overtime.
Common Mistakes in Overtime Calculations
Not Including Relevant Holiday Pay Correctly
Holiday pay can interact with overtime calculations differently depending on the type of payment and applicable rules.
Simply receiving holiday pay does not automatically mean those hours count as hours worked for FLSA overtime purposes. However, certain premium payments may affect the regular-rate calculation depending on the circumstances.
Employers should therefore review the applicable rules instead of automatically adding or excluding every type of holiday payment.
Overlooking State and Local Overtime Laws
One common mistake is relying only on federal overtime regulations while ignoring state or local requirements.
Some jurisdictions provide additional overtime protections, including rules that may differ from the standard federal 40-hour workweek approach.
If state law provides a more protective overtime standard, it may affect how an employee’s overtime should be calculated.
Not Counting All Hours Worked
Another common overtime calculation error is failing to record all hours an employee actually works.
Depending on the circumstances, work performed:
- Before a scheduled shift
- After a scheduled shift
- At home
- At the employer’s workplace
- During required work-related activities
may need to be counted as working time under applicable rules.
The FLSA generally requires compensable work time to be properly accounted for when an employee is required or permitted to work.
Accurate time records help employers calculate overtime correctly and help employees verify that they have been paid for all applicable hours.
Frequently Asked Questions(FAQs)
Overtime earnings are generally included in taxable wages, and overtime does not automatically become tax-free simply because it is paid at a higher rate.
For 2026, eligible taxpayers may claim the federal qualified overtime compensation deduction, subject to the applicable rules and limits. The deduction generally applies to the qualifying overtime premium rather than the entire overtime paycheck.
Social Security and Medicare taxes generally continue to apply to overtime compensation.
If you want to estimate how much overtime pay you may take home after applicable taxes and deductions, use a Paycheck Calculator alongside this overtime calculator.
Yes, where applicable, the calculator can account for double-time pay when the selected calculation or applicable rules call for a 2× rate.
However, double time is not a universal federal FLSA requirement. Whether double time applies depends on the relevant state law, employer policy, contract, collective bargaining agreement, or other applicable arrangement.
For example:
$20 × 2 = $40/hour
For covered, non-exempt employees, federal law generally requires overtime pay for hours worked over 40 in a single workweek.
This is different from employees who qualify for an applicable overtime exemption. Some salaried employees may be exempt when they satisfy the relevant salary and duties requirements.
The FLSA workweek is generally a fixed and regularly recurring period of seven consecutive 24-hour days, and it does not have to match the calendar week.
Yes. Federal law establishes a general overtime standard, but state laws can provide additional protections or different requirements.
Most states use the federal-style 40-hour workweek standard for many employees, while some states also have rules that can trigger overtime based on daily hours worked or other conditions.
If both federal and state overtime laws apply, the employee may be entitled to whichever applicable standard provides the greater protection.
For this reason, always consider the applicable state and local rules when calculating overtime.
For 2026, certain taxpayers may qualify for a new federal income-tax deduction for qualified overtime compensation.
The deduction generally applies to the overtime premium portion required under the FLSA—the amount paid above the employee’s regular rate. For example, with a 1.5× overtime rate, the additional 0.5× portion can represent qualified overtime compensation for purposes of the deduction.
For 2026, the deduction can generally be up to:
- $12,500 for eligible individual taxpayers
- $25,000 for eligible married couples filing jointly
The deduction is subject to income limitations and other eligibility requirements.
Importantly, “no tax on overtime” does not mean that all overtime wages are completely tax-free. Qualified overtime compensation generally remains subject to employment taxes such as Social Security and Medicare taxes.
This calculator provides an estimate and should not be considered tax advice.
In simple terms, covered, non-exempt employees are generally entitled to overtime under the FLSA when they work more than 40 hours in a workweek.
The key point is that working more than 40 hours by itself does not determine eligibility for every employee. The employee must generally be covered and non-exempt under the applicable overtime rules.
Some states also have additional overtime requirements, including rules that may apply based on daily hours or other circumstances.