Overtime Calculator

Split the week into regular and overtime hours, multiply regular hours by your hourly rate, multiply overtime hours by your rate and the overtime multiplier (usually 1.5), then add the two. Under federal law overtime starts after 40 hours in a workweek. Example: 46 hours at $20 is 40 x $20 + 6 x $30 = $980.

Time and a half = hourly rate x 1.5. At $20 per hour that is $30 per overtime hour. Total weekly pay = (regular hours x $20) + (overtime hours x $30). Another way to see it: you earn your normal $20 for every hour, plus an extra $10 premium for each overtime hour.

Federal law has no double time. In California, hours over 12 in a day are paid at 2x, hours over 8 in a day (up to 12) at 1.5x, hours over 40 in a workweek at 1.5x, and on the 7th consecutive day of a workweek the first 8 hours are 1.5x and anything beyond 8 is 2x. Hours already paid as daily overtime are not counted again toward the 40-hour weekly threshold. Exempt employees, some union contracts and alternative workweek schedules follow different rules.

Federal law (FLSA) requires overtime only after 40 hours in a workweek, regardless of how many hours you work in a single day. A few states, such as California, also require overtime for long days, and some employers or contracts add their own daily rules. Use the Custom preset if your contract defines its own thresholds.

Texas has no state overtime law for private employers, so the federal rule applies: 1.5x your regular rate for hours over 40 in a workweek, if the FLSA covers you and you are not exempt. The Texas preset in this calculator applies exactly that. Other states have their own rules and are added only after each one is verified against the state labor agency.

Overtime is based on your regular rate of pay, not just your base rate. With two rates, add all straight-time earnings for the week and divide by total hours worked to get the weighted-average regular rate. Shift differentials and non-discretionary bonuses (promised or tied to goals) go into that total; discretionary gifts do not. Overtime premium is then 0.5 x regular rate for each overtime hour at 1.5x. Example: 30h at $18 plus 15h at $22 plus a $100 bonus is a regular rate of $21.56 and total pay of $1,023.89.

It depends on exempt status, not on being salaried. To be exempt, an employee generally must be paid a minimum salary and perform exempt duties (executive, administrative, professional and similar tests). Salaried employees who fail either test are non-exempt and are owed overtime. California sets a higher salary floor than the federal level, and thresholds change, so check the current figures with the Department of Labor or your state agency. The salary helper in the calculator converts a salary to an hourly rate.

Enter your hours and rate in the calculator, then use the pay stub check with the overtime hours and dollar amount from your stub. The tool shows whether it reconciles and highlights the dollar difference. Common causes of a gap are a different workweek definition, a bonus left out of the regular rate, a stub that lists only the half-time premium, or overtime hours rounded down.

Overtime is ordinary taxable wages and is subject to federal income tax, Social Security and Medicare. It is not taxed at a higher rate, but one large paycheck can look heavily withheld. A new federal deduction for qualified overtime compensation (the premium portion, the extra half in time and a half) applies for tax years 2025 through 2028, with annual caps and income phase-outs. The deduction does not remove Social Security and Medicare tax. Use the no tax on overtime calculator to estimate it, and confirm details with the IRS or a tax professional.