At $20 per hour, 46 hours in a workweek with a 1.5× overtime rate produces $800 regular pay plus $180 overtime pay, for $980 gross pay.
The overtime pay formula
For a simple hourly-pay example, calculate the overtime rate first, then multiply it by the overtime hours. Overtime rate = regular hourly rate × overtime multiplier. Overtime pay = overtime rate × overtime hours. Total gross pay = regular pay + overtime pay.
Under the federal Fair Labor Standards Act (FLSA), covered nonexempt employees generally must receive at least 1.5 times their regular rate for hours worked over 40 in a workweek. This guide explains the arithmetic and the federal baseline; it does not determine whether a particular worker is legally entitled to overtime.
How to calculate overtime pay step by step
Start with the regular rate of pay, identify the overtime hours in the workweek, apply the relevant overtime multiplier, and then add the overtime amount to regular earnings. For a straightforward hourly employee with no additional compensation affecting the regular rate, the hourly rate and regular rate may be the same.
If bonuses, commissions, multiple pay rates, piece-rate earnings, or other compensation are involved, the regular rate may require a different calculation. The U.S. Department of Labor explains that the regular rate can include more than the stated hourly wage.
- 1. Determine the regular rate of pay.
- 2. Identify the overtime hours for the workweek.
- 3. Multiply the regular rate by the overtime multiplier.
- 4. Multiply the overtime rate by the overtime hours.
- 5. Add regular pay and overtime pay to estimate total gross pay.
Worked example: $20 per hour and 46 hours
Assume an employee earns a $20 regular hourly rate, works 46 hours in one workweek, and uses a 1.5× overtime multiplier. The first 40 hours equal $800 in regular pay. The six overtime hours use a $30 overtime rate, producing $180 in overtime pay. Estimated gross pay for the week is $980.
The calculation is: $20 × 40 = $800 regular pay; $20 × 1.5 = $30 overtime rate; $30 × 6 = $180 overtime pay; $800 + $180 = $980 total gross pay.
Quick time-and-a-half reference table
The table below shows simple 1.5× examples. It assumes the listed hourly rate is the applicable regular rate and does not account for other compensation that could change that rate.
| Regular rate | 1.5× overtime rate | Pay for 5 overtime hours |
|---|---|---|
| $15.00 | $22.50 | $112.50 |
| $20.00 | $30.00 | $150.00 |
| $25.00 | $37.50 | $187.50 |
| $30.00 | $45.00 | $225.00 |
What is the regular rate of pay?
The regular rate is the rate used as the basis for federal overtime calculations. For a simple hourly employee, it may match the hourly wage. In other situations, certain bonuses, commissions, or other compensation can affect the regular rate.
The Department of Labor describes a general approach of dividing qualifying total compensation for the workweek by total hours worked when earnings are based on arrangements such as salary, piece rate, or commission. Some payments are excluded by statute, so a basic hourly formula should not be used as a substitute for payroll or legal analysis in complex cases.
Does overtime always start after 40 hours?
For covered nonexempt employees under the federal FLSA, the general rule is overtime after 40 hours worked in a workweek. The federal law does not automatically require overtime simply because work happens on a Saturday, Sunday, holiday, or regular day of rest.
State law, a collective bargaining agreement, an employment contract, or an employer policy can create different or additional rules. If you need to know whether overtime applies to a specific situation, check the rules that govern that worker rather than relying only on a calculator.
Is overtime always time and a half?
Time and a half is the common federal baseline for covered nonexempt employees: at least 1.5 times the regular rate for qualifying overtime hours. The FLSA itself does not generally require double-time pay.
If you already know that a 1.5× multiplier applies, use the Time and a Half Calculator. If you need to enter a different multiplier for an estimate, use the Overtime Pay Calculator.
Common overtime calculation mistakes
A common mistake is multiplying the stated hourly wage by 1.5 without checking whether another regular-rate calculation applies. Other mistakes include averaging hours across multiple workweeks, assuming every weekend or holiday hour is automatically overtime, or applying a federal example where a state-specific rule controls.
Keep the workweek, overtime hours, regular rate, multiplier, and assumptions visible. That makes the estimate easier to audit and reduces the chance of mixing payroll arithmetic with eligibility rules.
- Do not average two or more workweeks to avoid overtime.
- Do not assume weekend or holiday work automatically means overtime under federal law.
- Do not treat the overtime multiplier as proof of legal eligibility.
- Do not ignore bonuses, commissions, or multiple rates when they affect the regular rate.
Use an overtime calculator for the arithmetic
For a quick estimate, use the Overtime Pay Calculator when you want to enter the hourly rate, regular hours, overtime hours, and your own multiplier. Use the Time and a Half Calculator when the calculation specifically uses 1.5×.
Both tools estimate gross pay math. They do not determine employee classification, exemptions, state-law coverage, tax withholding, or whether overtime is legally owed.
Continue with a calculation