Overtime Pay Calculator
Hours past the threshold are paid at a multiplier — usually time and a half. The figure worth watching is the effective rate across the whole week, which sits between the two.
Total pay
$1,078.00for the week
- Total pay
- $1,078.00
- Base pay
- $880.00
- Overtime pay
- $198.00
- Overtime hours
- 6.0
- Effective rate
- $23.43
- Thresholds and multipliers vary by country, contract and industry. Time and a half beyond 40 hours a week is common but far from universal — check yours.
- Some places apply a daily threshold as well as a weekly one, which can pay overtime on a long day even in a short week.
About overtime pay
The structure is simple. Hours up to the threshold are paid at the normal rate; hours beyond it at a multiplier. At $22 an hour with a 40-hour threshold, working 46 hours gives $880 of basic pay plus 6 hours at $33, which is $198 — $1,078 for the week.
The effective rate across all 46 hours is $23.43. That number is more useful than it looks: it is what the week actually paid per hour worked, and it is the right figure for comparing a job with regular overtime against one without.
Time and a half is the most common multiplier and it is not universal. Double time for Sundays and public holidays is widespread, and some agreements pay time and a third or other fractions. The threshold varies too — 40 hours a week is the US federal standard, and other places use different weekly figures, daily thresholds, or both.
Whether overtime is owed at all depends on employment classification, and that is a legal question rather than an arithmetic one. Salaried staff above certain thresholds are frequently exempt, which is precisely why unpaid overtime shows up so reliably in salaried roles. This calculates what a given rate and multiplier produce; it does not say whether you are entitled to them.
What it works out
- Basic pay and overtime pay separately
- Any threshold and any multiplier
- The effective rate across all hours worked
The formula
Pay = (Normal hours × Rate) + (Overtime hours × Rate × Multiplier)
Forty hours at $22 is $880. The six hours past the threshold are paid at $22 × 1.5, which is $33, so $198. Together $1,078.
Divide that by the 46 hours actually worked and you get $23.43 — the effective rate. It sits between the basic and the overtime rate, closer to the basic one because most of the hours are basic.
That figure is what makes overtime comparable to anything else. A job at $25 flat with no overtime pays more per hour than this one, despite the lower headline gap, and only the effective rate shows it.
Going the other way, the overtime premium — the extra half rate — is $11 an hour here, or $66 for the week. That is the amount the employer pays for the flexibility, and it is why capping overtime is often cheaper than it looks and hiring is often dearer.
- Rate
- The normal hourly rate.
- Threshold
- Hours before overtime starts. 40 a week is the US federal standard.
- Multiplier
- 1.5 for time and a half, 2 for double time.
A worked example
46 hours at $22 an hour, with time and a half past 40.
That works out to $1,078.00 for the week.
- Total pay
- $1,078.00
- Base pay
- $880.00
- Overtime pay
- $198.00
- Overtime hours
- 6.0
- Effective rate
- $23.43
Questions
How is overtime pay calculated?
Hours past the threshold are paid at the normal rate times the multiplier. Six hours past 40 at $22 with time and a half is 6 × $33, which is $198 on top of $880 of basic pay.
What is time and a half?
The normal rate multiplied by 1.5. At $22 an hour that is $33. It is the most common overtime multiplier and it is not universal — double time for Sundays and holidays is widespread.
When does overtime start?
Most commonly after 40 hours in a week, which is the US federal standard. Other jurisdictions use different weekly figures, daily thresholds, or both — some pay overtime past eight hours in a single day regardless of the week.
What is the effective hourly rate?
Total pay divided by all hours worked — $23.43 here. It is the right number for comparing a job with regular overtime against one without, because it captures what the week actually paid per hour.
Is salaried work entitled to overtime?
Often not. Exemption depends on classification, duties and salary level, and it varies by jurisdiction. It is a legal question, and it is why unpaid overtime shows up so reliably in salaried roles.
Does paid holiday count towards the threshold?
Usually not — most rules count hours actually worked. A week with a public holiday and 40 worked hours generally does not trigger overtime even though you were paid for 48.
Is overtime taxed at a higher rate?
No, though it often looks that way on a payslip. Withholding is calculated as though every week were that busy, so more comes off in the moment and it evens out over the year.