How to calculate overtime pay
- Enter your hourly rate.
- Choose the rule that applies to you. US federal law (the Fair Labor Standards Act) pays 1.5 times your regular rate for hours over 40 in a workweek. California also counts overtime per day. Custom lets you set any threshold, multiplier and a double-time level from your contract.
- Type the total hours for the week, or switch to Hours per day and enter each day; this is needed for daily overtime rules.
- Read the total pay before tax, the split between regular, overtime and double-time hours, and what the week would add up to over a year.
The overtime formula
Under the federal rule, overtime pay = overtime hours × hourly rate × 1.5. For example, 45 hours at $20 an hour is 40 × $20 = $800 of regular pay plus 5 × $30 = $150 of overtime, $950 in total. The extra "half" is the overtime premium: here 5 × $10 = $50 more than straight time.
California's rules are stricter. Hours over 8 in a day, and the first 8 hours on the seventh consecutive day of the workweek, are paid at 1.5×. Hours over 12 in a day, and over 8 on the seventh day, are paid at double time. Hours over 40 in the week are overtime too, but hours already paid as daily overtime are not counted twice. Alaska, Nevada and Colorado also have daily overtime rules; set them with the custom option.
Federal overtime applies to "non-exempt" employees. Many salaried managers, professionals and administrative staff earning above the salary threshold are exempt, and some industries have special rules. Your regular rate can also include shift differentials and non-discretionary bonuses, which raise the overtime rate. Outside the US, overtime rates are usually set by contract or collective agreement rather than law, so use the custom settings.
What is time and a half for $20 an hour?
$30 an hour: 1.5 × $20. Double time would be $40 an hour.
Is overtime calculated daily or weekly?
Federal law uses the workweek (over 40 hours). A few states, including California, Alaska, Nevada and Colorado, also have daily overtime.
Do paid holidays or sick days count toward 40 hours?
Not under federal law: only hours actually worked count, unless your employer's policy or contract says otherwise.
Is this before or after tax?
Before tax. For tax years 2025 to 2028, US workers can deduct the overtime premium (the extra half of time and a half) from federal taxable income, up to $12,500 a year or $25,000 for joint filers, with a phase-out at higher incomes. Social Security, Medicare and state taxes still apply. The yearly box shows your premium.