What this calculator does
Overtime pay is the amount owed for hours worked beyond the regular schedule, calculated at a higher rate than ordinary hours. That higher rate is usually expressed as a multiplier of the base hourly rate, commonly time-and-a-half or double time depending on the jurisdiction, employer agreement or which threshold was crossed.
Because overtime multipliers are set by award, contract or local law and vary widely, this calculator takes the multiplier as an input rather than assuming a fixed figure. Entering the correct multiplier for the situation, rather than defaulting to a single standard rate, is what keeps the result accurate.
The formula
Multiply the regular hourly rate by the overtime multiplier and by the number of overtime hours to get overtime pay. Add that to regular pay, which is the hourly rate multiplied by regular hours, to get the total.
| Term | Meaning |
|---|---|
| Overtime multiplier | The factor applied to the base rate for overtime hours, such as 1.5 for time-and-a-half or 2.0 for double time. |
| Overtime pay | Pay for overtime hours only: rate × multiplier × overtime hours. |
| Total pay | Regular pay plus overtime pay for the period. |
The inputs explained
| Field | What to enter |
|---|---|
| Regular hourly rate ($) | The regular hourly rate, before any overtime multiplier is applied. |
| Regular hours worked | The number of hours worked at the regular rate. |
| Overtime hours worked | The number of hours worked that qualify for the overtime rate. |
| Overtime multiplier | The overtime multiplier that applies, such as 1.5 for time-and-a-half or 2.0 for double time. |
When to use it
Checking a payslip
Recalculating overtime pay independently against the hours and multiplier that should have applied is a quick check that a payslip matches what was actually worked.
Budgeting for a busy period
Estimating the overtime cost of a known number of extra hours, before they are worked, helps decide whether that overtime is worth it against a rostering alternative.
Comparing time-and-a-half against double time
Some hours attract a higher multiplier than others depending on when they fall, and comparing the two side by side shows the size of that difference.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How total pay changes as overtime hours increase at a fixed rate and multiplier
A fixed $28 hourly rate and 38 regular hours, against a range of overtime hours at a 1.5 multiplier.
| Overtime hours | Total pay | Overtime pay |
|---|---|---|
| 0 hrs | $1,064.00 | $0.00 |
| 2 hrs | $1,148.00 | $84.00 |
| 4 hrs | $1,232.00 | $168.00 |
| 6 hrs | $1,316.00 | $252.00 |
| 8 hrs | $1,400.00 | $336.00 |
| 10 hrs | $1,484.00 | $420.00 |
How overtime pay changes with the multiplier at a fixed number of overtime hours
A fixed $28 hourly rate and 6 overtime hours, against a range of overtime multipliers.
| Overtime multiplier | Overtime pay | Total pay |
|---|---|---|
| 1.25× | $210.00 | $1,274.00 |
| 1.5× | $252.00 | $1,316.00 |
| 1.75× | $294.00 | $1,358.00 |
| 2× | $336.00 | $1,400.00 |
Questions
What overtime multiplier should I use?
Whatever applies under the relevant award, employment contract or local law for the hours in question. These vary by jurisdiction, industry and even by which hours were worked, so there is no single correct default.
Can there be more than one overtime rate in the same pay period?
Yes. Many awards apply a lower multiplier to the first block of overtime hours and a higher one beyond a further threshold. Where that applies, calculate each block separately at its own multiplier and add the results together.
Does this include penalty rates for weekends or public holidays?
Not directly. Weekend and public holiday penalty rates are usually separate from overtime multipliers, though they can apply on top of each other in some awards. Treat those hours as their own calculation using the applicable rate as the multiplier.
Is overtime pay taxed differently to regular pay?
Overtime pay is generally taxed as ordinary income alongside regular pay, though withholding on a given payslip can look different depending on how a pay run is structured. Check with a payroll professional for how it is treated in your situation.
To see how many hours a mixed roster of full-time and part-time staff actually represents, use the FTE calculator.