How to Calculate Overtime Pay: Time-and-a-Half Math With Examples
Overtime is the highest-leverage part of hourly pay: every extra hour is worth 1.5 hours. Here is the exact math, with real numbers.
Overtime pay equals overtime hours times your regular hourly rate times 1.5. Total weekly pay is (40 x regular rate) + (overtime hours x regular rate x 1.5). At $22.50 an hour, 2 overtime hours pay $67.50 on top of the $900 regular week, for $967.50 total.
The overtime pay formula
Overtime pay = overtime hours x regular hourly rate x 1.5
Total weekly pay = (40 x regular rate) + (overtime hours x regular rate x 1.5)
Under the federal Fair Labor Standards Act (FLSA), nonexempt employees earn overtime for hours worked beyond 40 in a single workweek, at no less than 1.5 times the regular rate. Some states add daily overtime rules (for example, beyond 8 hours in a day), and some employers pay double time for holidays, but 1.5x past 40 is the federal floor and the standard almost everywhere.
Worked example: $25 an hour with 5 overtime hours
Regular pay: 40 x $25 = $1,000. Overtime rate: $25 x 1.5 = $37.50 an hour. Overtime pay: 5 x $37.50 = $187.50. Weekly total: $1,000 + $187.50 = $1,187.50.
Notice what that does to the effective rate: $1,187.50 / 45 hours = $26.39 an hour. Those 5 overtime hours lifted the whole week's average by $1.39 an hour. Over a year, 5 overtime hours a week adds $9,750 to a $52,000 base salary, which is why converting hourly to salary without counting overtime understates real pay.
Worked example: 2 hours of overtime at $22.50 an hour
This is one of the most searched overtime questions, so here it is exactly: regular pay is 40 x $22.50 = $900. The overtime rate is $22.50 x 1.5 = $33.75 an hour. Two overtime hours: 2 x $33.75 = $67.50. Weekly total: $900 + $67.50 = $967.50. Two hours sounds small, but at time-and-a-half it is the equivalent of 3 regular hours of pay.
Overtime for salaried employees
Salaried does not automatically mean overtime-exempt. Nonexempt salaried employees are entitled to overtime, and the regular rate is the salary divided by the hours it covers. For a $52,000 salary on a 40-hour week: $52,000 / 2,080 = $25.00 regular rate, so overtime pays $37.50 an hour. Exempt salaried employees get no overtime regardless of hours worked, which is exactly the trap described in the salary to hourly conversion guide: a $52,000 exempt salary worked at 50 hours a week is really $20.00 an hour.
Whether you are exempt depends on job duties and pay level under FLSA rules, not on the word "salary" in your offer letter. If you are unsure of your classification, the Department of Labor's overtime calculator advisor can walk through it.
Common overtime mistakes
Counting the pay period instead of the week. Overtime is calculated per workweek. Working 50 hours one week and 30 the next does not average to 40; the 50-hour week owes 10 hours of overtime.
Using the wrong regular rate. The regular rate includes most extra payments, not just the base wage: shift differentials and non-discretionary bonuses generally fold into it, which raises the overtime rate above 1.5x the base.
Assuming salary means no overtime. Covered above, and worth repeating: nonexempt salaried workers earn overtime. Misclassification is one of the most common payroll violations.
Run your own schedule through our salary to hourly calculator: turn on the overtime toggle, enter your extra hours, and see the effective hourly pay with time-and-a-half included.
Calculate your pay with overtime
Enter your salary or wage, your weekly hours, and your overtime hours. Our free calculator applies the 1.5x rate and shows your effective hourly pay.
Overtime pay questions
What is the formula for calculating overtime pay?
Overtime pay = overtime hours x regular hourly rate x 1.5. Total weekly pay = (40 x regular rate) + (overtime hours x regular rate x 1.5). Under the federal Fair Labor Standards Act, overtime applies to hours worked beyond 40 in a week.
How do I calculate my overtime pay?
First find your regular hourly rate. Then count the hours you worked beyond 40 in the week, multiply those hours by your rate times 1.5, and add that to your regular 40-hour pay. For example, at $25 an hour with 5 overtime hours: (40 x $25) + (5 x $25 x 1.5) = $1,187.50 for the week.
How much is 2 hours of overtime at $22.50 an hour?
$67.50. Two overtime hours at time-and-a-half: 2 x $22.50 x 1.5 = $67.50. Added to the regular 40-hour pay of $900, the weekly total is $967.50.
Do salaried employees get overtime pay?
Some do. Salaried workers classified as nonexempt under the Fair Labor Standards Act must receive overtime at 1.5x their regular rate, which is the salary divided by the hours it covers. Salaried exempt workers are not entitled to overtime. The salary alone does not decide the classification; job duties and pay level do.
Is overtime pay taxed differently?
No. Overtime pay is taxed at the same rates as regular pay. Withholding may look higher on a big overtime check because payroll systems annualize that one check, but the actual tax on the income is the same.