Overtime Calculator
How It Works
Overtime pay is one of the most powerful tools hourly workers have to increase their income. Under the Fair Labor Standards Act (FLSA), most employees who work more than 40 hours in a single workweek are entitled to overtime pay at no less than 1.5 times their regular hourly rate. Some employers, union contracts, or state laws require double-time pay for hours beyond a certain threshold or for weekend and holiday work.
The basic calculation is straightforward: multiply your regular hourly rate by the overtime multiplier for every hour worked beyond 40 in a week. If you earn $25 per hour and work 10 hours of overtime at time-and-a-half, your overtime pay is $25 times 1.5 times 10 hours, which equals $375 for that week. Combined with your 40 hours of regular pay at $1,000, your gross weekly earnings total $1,375.
What surprises many workers is how much overtime income shrinks after taxes. Overtime pay is taxed at the same rate as regular income, but because overtime pushes your total earnings higher, more of your income may land in a higher tax bracket. Federal income tax, Social Security (6.2% on the first $184,500 of wages in 2026), and Medicare (1.45% on all wages) all apply to every dollar of overtime pay.
Pay period selection affects how you see your paycheck but not your annual totals. If you consistently work the same overtime hours each week, your annual gross is simply your weekly gross multiplied by 52. Biweekly paychecks divide the annual total by 26 pay periods, and monthly paychecks by 12. Consistent overtime can significantly boost your annual income, but it is important to budget based on your base pay and treat overtime as supplemental.
Not all employees qualify for overtime under the FLSA. Salaried employees who meet certain duties tests and earn above the salary threshold ($58,656 annually as of 2026) are generally exempt from overtime requirements. If you are classified as exempt, this calculator still helps you understand what your time would be worth at an equivalent hourly rate with overtime, which is useful for negotiating compensation or evaluating job offers.
Formula Breakdown
Overtime pay is calculated as follows: 1. Regular Weekly Pay = Hourly Rate x Regular Hours Example: $25.00 x 40 = $1,000.00 2. Overtime Weekly Pay = Hourly Rate x Overtime Multiplier x Overtime Hours Example: $25.00 x 1.5 x 10 = $375.00 3. Total Weekly Gross = Regular Pay + Overtime Pay $1,000.00 + $375.00 = $1,375.00 4. Annual Gross = Weekly Gross x 52 $1,375.00 x 52 = $71,500.00 5. Estimated Federal Tax = ~22% flat estimate on gross $71,500.00 x 0.22 = $15,730.00 6. Social Security = min(Annual Gross, $184,500) x 6.2% $71,500.00 x 0.062 = $4,433.00 7. Medicare = Annual Gross x 1.45% $71,500.00 x 0.0145 = $1,036.75 8. Estimated Annual Net = Gross - Federal Tax - SS - Medicare
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