Work & pay guide

How Overtime Pay Is Calculated

Understand regular hours, overtime hours, premium rates, and the assumptions behind an overtime estimate.

Written by Saroj Roy, founder and maintainer, numbertrove · Formula checked against the sources below · Updated 2026-08-31

Overtime calculations are simple arithmetic but complicated by jurisdiction, worker classification, workweek definitions, and employer policy. Use the calculator to model a stated rule, then verify the rule that applies to you.

Separate regular and overtime hours

Regular pay = regular hours × base rate. Overtime pay = overtime hours × base rate × overtime multiplier. A 1.5 multiplier means time-and-a-half, but not every situation uses that rule.

Worked example

At $24 per hour, 40 regular hours and 8 overtime hours at 1.5×, regular pay is $960 and overtime pay is 8 × $36 = $288, for $1,248 gross before deductions.

Check the governing rule

Some rules depend on daily hours, weekly hours, holidays, double time, exemptions, or collective agreements. The calculator cannot determine legal classification or whether bonuses belong in the regular rate.

Read the payslip

Compare the modeled regular rate, premium portion, total hours, and deductions with the payroll statement. Keep records and ask payroll or the relevant labor authority about unexplained differences.

Sources

The figures and rules in this guide are checked against: