This calculator turns a base hourly rate, a standard-hours count and an overtime multiplier into a weekly pay figure, then projects it out to a year at that same pace. The overtime portion is the number worth watching separately, because it is the part of the paycheck that swings with scheduling decisions rather than with your agreed rate.
What counts as a typical overtime premium
In the United States the federal floor under the Fair Labor Standards Act is time-and-a-half, a 1.5 multiplier, for non-exempt employees working beyond 40 hours in a workweek. Many union contracts and some state rules go further, and a small number of employers pay double time for particular shifts, so the multiplier you enter should come from your actual pay stub or contract rather than an assumed 1.5.
A weekly total that looks unusually high relative to base hours alone is normal for anyone doing regular overtime; the overtime portion line on this calculator is the quickest way to see how much of that total depends on hours worked rather than the base rate agreed at hire.
If the overtime portion regularly exceeds a third of total pay, that is a signal the role is effectively scheduled around overtime, which is worth factoring into any decision about switching to a fixed salary or a different shift pattern.
Three worked scenarios
A retail worker on 22 an hour puts in 40 standard hours plus 5 hours of overtime at time-and-a-half. Base pay is 880, the overtime portion is 22 times 1.5 times 5, or 165, for a weekly total of 1,045. At that pace every week, the yearly figure is 1,045 times 52, or 54,340, and the effective hourly rate across all 45 hours worked is about 23.22.
A tradesperson on 30 an hour works a 40-hour base week plus 10 hours on a Sunday shift paid at double time rather than time-and-a-half. Base pay is 1,200, the overtime portion is 30 times 2.0 times 10, or 600, and the weekly total is 1,800. Projected across 52 weeks that is 93,600 a year, with an effective rate across the 50 hours worked of 36.
The gap between those two multipliers matters on its own: the same 10 overtime hours at 30 an hour pay 450 under time-and-a-half but 600 under double time, a difference of 150 a week or 7,800 across a full year of that schedule. Confirm which multiplier actually applies to your shift before comparing job offers on this basis.
Where the projection stops matching reality
The yearly figure assumes the exact same standard hours and overtime hours repeat for 52 straight weeks, which almost never happens. Seasonal businesses front-load overtime into a handful of months, retail spikes around holidays, and most workers take unpaid or partly-paid leave that this projection does not subtract. Treat the annual number as a ceiling built on your busiest typical week, not a guaranteed income.
The formula also does not distinguish between hours that are contractually guaranteed and hours that are offered ad hoc. If overtime is offered rather than scheduled, a manager can withdraw it without notice, and the base-hours-only total is the more honest floor to budget against.
Finally, this is a gross-pay calculation. It does not account for how a heavier week interacts with tax withholding, retirement contributions taken as a percentage of pay, or benefits that phase out above an income threshold, all of which reduce what actually lands in a bank account relative to the gross figures shown here.
Jurisdiction and classification caveats
US federal law only requires overtime pay for employees classified as non-exempt; salaried employees who meet the Department of Labor's duties and salary-level tests for executive, administrative or professional exemptions are not entitled to time-and-a-half regardless of hours worked, so this calculator is not applicable to them.
Several states set rules that are more generous than the federal floor. California requires daily overtime after 8 hours in a single day and double time after 12 hours in a day, on top of the standard weekly threshold, so a worker there can owe overtime pay in a week that never crosses 40 total hours.
Outside the US, most UK and EU employers are not required by statute to pay an overtime premium at all; the Working Time Regulations in the UK cap weekly hours rather than mandate extra pay, so any overtime rate is whatever your contract specifies, and it is worth checking that document rather than assuming a 1.5 multiplier applies.
Frequently asked questions
- How is overtime pay calculated?
- Multiply the base hourly rate by the overtime multiplier, then by the number of overtime hours worked, and add that to base pay for the standard hours. On 22 an hour with 5 overtime hours at time-and-a-half, that is 22 times 1.5 times 5, or 165, added to a base of 880 for a weekly total of 1,045.
- Does overtime start after 40 hours in every state?
- The federal 40-hour weekly threshold under the Fair Labor Standards Act applies everywhere in the US as a floor, but some states add their own rules. California, for example, also requires daily overtime after 8 hours in a single day and double time after 12, independent of the weekly total.
- Is overtime taxed at a higher rate?
- No. Overtime pay is taxed as ordinary income at the same marginal rates as your other wages; it does not sit in a separate, higher tax bracket. A bigger paycheck can trigger higher withholding for that pay period because payroll systems annualize a single check, but that is a withholding timing effect, not a higher actual tax rate.
- Are salaried employees entitled to overtime pay?
- Only if they are classified as non-exempt. Employees who meet the Department of Labor's tests for executive, administrative or professional duties and who are paid above the applicable salary threshold are exempt and are not owed an overtime premium no matter how many hours they work.
- What is the difference between time-and-a-half and double time?
- Time-and-a-half pays 1.5 times the base hourly rate for each overtime hour; double time pays twice the base rate. On a 30 hourly rate, 10 overtime hours pay 450 under time-and-a-half versus 600 under double time, a 150 difference for that single week.
- Can I rely on this calculator's yearly figure as my actual income?
- Only as an estimate of your ceiling in a typical busy week repeated year-round. It does not account for weeks with less or no overtime, unpaid leave, or changes to your schedule, so treat the weekly figures as the more reliable numbers and the yearly one as illustrative.
Sources
- US Department of Labor, Wage and Hour Division — overtime pay — Federal overtime rule requiring 1.5x pay after 40 hours per workweek for non-exempt employees, and the exemption tests for salaried workers (current as of 2025).
- California Department of Industrial Relations — overtime FAQ — State rule requiring daily overtime after 8 hours and double time after 12 hours in a single workday, in addition to the federal weekly threshold.