Finance formula
How to calculate overtime pay
The overtime pay formula estimates gross pay for an hourly workweek before taxes, deductions, or benefits.
Direct answer
Formula
total pay = regular hours * rate + overtime hours * rate * multiplier
Use the table below to match each symbol with the right input. Keep units consistent before you start.
Overtime pay formula
Start here when you only need the equation and variable names.
Formula
total pay = regular hours * rate + overtime hours * rate * multiplier
The overtime pay formula estimates gross pay for an hourly workweek before taxes, deductions, or benefits.
Variable meanings
Check each symbol, meaning, and unit before you calculate.
| Symbol | Name | Description | Unit |
|---|---|---|---|
| rate | Hourly rate | Base hourly wage before overtime premium. | currency per hour |
| regular hours | Regular hours | Hours paid at the base rate. | hours |
| overtime hours | Overtime hours | Hours paid at the overtime rate. | hours |
| multiplier | Overtime multiplier | Premium factor such as 1.5 for time and a half. | Depends on inputs |
| total pay | Gross pay | Regular pay plus overtime pay before deductions. | currency |
When to use this formula
Check that your situation matches the formula before you trust the result.
- Use it for hourly paychecks when regular hours, overtime hours, and the overtime premium multiplier are known.
Step-by-step method
Follow these steps when you are solving it by hand.
- 1Multiply regular hours by the base hourly rate.
- 2Multiply overtime hours by the base hourly rate and overtime multiplier.
- 3Add regular pay, overtime pay, and any eligible premium or bonus pay.
- 4Apply the workweek, daily overtime, and double-time rules that govern the job.
Examples
These sample numbers show the order of operations and units.
Time-and-a-half week
rate
$24/hour
regular hours
40
overtime hours
8
multiplier
1.5
- 1.regular pay = 40 * 24 = 960
- 2.overtime pay = 8 * 24 * 1.5 = 288
- 3.total pay = 960 + 288 = 1248
Result
Gross pay is $1,248 before taxes and deductions.
Short regular week with overtime
rate
$18.50/hour
regular hours
36
overtime hours
5
multiplier
1.5
- 1.regular pay = 36 * 18.50 = 666
- 2.overtime pay = 5 * 18.50 * 1.5 = 138.75
- 3.total pay = 666 + 138.75 = 804.75
Result
Gross pay is $804.75 before taxes and deductions.
Mistakes to avoid
Small input or unit errors can change the answer a lot.
- Counting paid leave, unpaid breaks, or non-work time as overtime hours when the applicable rule does not.
- Multiplying by only the overtime premium instead of the full overtime rate.
- Mixing daily overtime, weekly overtime, double-time, and bonus rules without separating them.
- Comparing gross pay with take-home pay after taxes and deductions.
Open the Overtime Pay Calculator
Open the calculator for the answer without rewriting the formula.
Enter your values in the related calculator, then compare the output with the hand method above.
Open Overtime Pay CalculatorFAQs
Short answers for common formula questions.
Can I calculate Overtime pay by hand?
Yes. Write the units next to each value, convert rates or measurements first, and round only the final answer.
Why does my Overtime pay result differ from another calculator?
Most differences come from rounding, unit conversions, rate timing, or a slightly different version of the formula.
When is the Overtime Pay Calculator better than hand math?
Open the Overtime Pay Calculator to check several scenarios or skip the hand arithmetic.