How to Calculate Overtime Pay: Formula, Examples, and Rules
By Shihab Mia July 13, 2026 6 min read
Quick answer
Under the US FLSA, overtime pay is at least 1.5 times your regular hourly rate (time and a half) for every hour worked over 40 in a workweek. The formula is: overtime pay = overtime hours x hourly rate x 1.5. For example, at 20 dollars per hour your overtime rate is 30 dollars, so 5 overtime hours pay 150 dollars. Your total pay is regular hours x rate, plus overtime hours x rate x 1.5.
Overtime is one of the most common places where paychecks go wrong, both for hourly workers checking their stub and for small business owners running payroll. The math itself is simple once you see it laid out, but a few details, like which hours count and how salaried staff are handled, trip people up. This guide walks through the exact formula, several worked examples, and the rules that actually matter under US federal law.
What is the overtime pay formula?
The overtime pay formula is overtime hours multiplied by your hourly rate multiplied by 1.5. Under the federal Fair Labor Standards Act (FLSA), enforced by the US Department of Labor, covered nonexempt employees must be paid at least time and a half for hours worked beyond 40 in a single workweek.
Break it into two parts and it becomes obvious:
- Regular pay = regular hours (up to 40) x hourly rate
- Overtime pay = overtime hours (over 40) x hourly rate x 1.5
- Total pay = regular pay + overtime pay
The number 1.5 is the overtime multiplier, which is why people call it time and a half. Some employers or states also pay double time (2x), but that is not required by federal law. More on that below. If you want the full breakdown of the multiplier itself, see our guide on how to calculate time and a half.
How to calculate overtime pay step by step
To calculate overtime pay, find your hourly rate, count hours over 40, multiply those hours by the rate and by 1.5, then add that to your regular pay. Here is a full worked example for someone who earns 20 dollars per hour and worked 45 hours in one week.
- Confirm the hourly rate. In this example the regular rate is 20 dollars per hour.
- Count total hours worked in the workweek. This person worked 45 hours.
- Split regular and overtime hours. The first 40 hours are regular; the 5 hours over 40 are overtime.
- Calculate regular pay. 40 hours x 20 dollars = 800 dollars.
- Calculate the overtime rate. 20 dollars x 1.5 = 30 dollars per overtime hour.
- Calculate overtime pay. 5 overtime hours x 30 dollars = 150 dollars.
- Add them together. 800 dollars + 150 dollars = 950 dollars gross pay for the week.
That is the whole method. The only thing that changes from job to job is the numbers you plug in. To skip the arithmetic, drop your hours and rate into the overtime calculator and it returns regular pay, overtime pay, and the total instantly.
Overtime pay examples at different wages
The table below shows total weekly pay for a worker who logs 45 hours (40 regular plus 5 overtime) at several common hourly rates. Notice that the overtime rate is always the base rate times 1.5.
Weekly pay at 45 hours worked (40 regular + 5 overtime)
| Hourly rate | Overtime rate (x1.5) | Regular pay (40 hrs) | Overtime pay (5 hrs) | Total weekly pay |
|---|---|---|---|---|
| 15 dollars | 22.50 dollars | 600 dollars | 112.50 dollars | 712.50 dollars |
| 20 dollars | 30 dollars | 800 dollars | 150 dollars | 950 dollars |
| 25 dollars | 37.50 dollars | 1,000 dollars | 187.50 dollars | 1,187.50 dollars |
| 30 dollars | 45 dollars | 1,200 dollars | 225 dollars | 1,425 dollars |
| 40 dollars | 60 dollars | 1,600 dollars | 300 dollars | 1,900 dollars |
Each overtime hour simply pays 50 percent more than a regular hour. If you know your regular rate, you can estimate any overtime figure in your head by taking half the rate and adding it to the full rate.
How do salaried employees calculate overtime?
Salaried nonexempt employees convert their salary into an hourly rate first, then apply the same time and a half formula. Being salaried does not automatically mean you are exempt from overtime; eligibility depends on your job duties and pay level under FLSA rules.
To find the hourly rate, divide the weekly salary by the number of hours it is meant to cover (usually 40). Suppose a nonexempt worker earns a 800 dollar weekly salary for a 40 hour week and works 46 hours.
- Find the hourly rate. 800 dollars / 40 hours = 20 dollars per hour.
- Identify overtime hours. 46 total minus 40 = 6 overtime hours.
- Find the overtime rate. 20 dollars x 1.5 = 30 dollars per hour.
- Calculate overtime pay. 6 x 30 dollars = 180 dollars.
- Add to the base salary. 800 dollars + 180 dollars = 980 dollars for the week.
If your pay is quoted annually, you will need to reduce it to a weekly or hourly figure first. Our walkthrough on how to convert salary to hourly covers that conversion in detail, and the salary to hourly calculator does it in one step.
Time and a half vs double time
Time and a half (1.5x) is the federal minimum for overtime. Double time (2x) means twice the regular rate and is not required by federal law, though some states, union contracts, or company policies provide it in specific situations.
Overtime multipliers compared
| Type | Multiplier | Federally required? | Typical trigger |
|---|---|---|---|
| Time and a half | 1.5x | Yes, over 40 hours per workweek | Standard overtime under FLSA |
| Double time | 2.0x | No | State law, holidays, or long shifts per policy |
California is the best known example of stricter state rules, requiring overtime after 8 hours in a single day and double time after 12 hours in a day. Always check your own state's labor department, because state rules can be more generous than federal ones, never less.
Common mistakes when calculating overtime
Most overtime errors come from counting the wrong hours or applying the multiplier to the wrong base. Watch for these:
- Averaging across two weeks. Overtime is calculated per workweek, not per pay period. Working 30 hours one week and 50 the next still earns 10 hours of overtime, even if the two-week total is 80.
- Forgetting to include bonuses. Nondiscretionary bonuses and shift differentials can raise the regular rate used for overtime, so the base is sometimes higher than the plain hourly wage.
- Counting paid time off as hours worked. Holiday, vacation, and sick hours generally do not count toward the 40 hour overtime threshold because they were not actually worked.
- Assuming salaried means exempt. Exemption depends on duties and a salary threshold, not on being paid a salary alone.
- Applying 1.5 to total hours. The multiplier only applies to hours over 40, not to the whole week.
Good to know
Accurate overtime starts with an accurate hour count. If you are adding up clock-in and clock-out times, our guide on how to calculate hours worked shows how to convert minutes to decimals so your totals are exact before you ever apply the 1.5 multiplier.
Try the overtime calculator
Enter your hourly rate and hours worked to see regular pay, overtime pay, and your total instantly, with the time and a half math handled for you.
⏱️ Try the free tool Overtime Calculator Free overtime calculator: enter your hourly rate, regular hours and overtime hours to see time-and-a-half or double-time pay, total earnings and your effective rate.Overtime pay is not complicated once you separate regular hours from the hours over 40 and remember that only those extra hours get the 1.5 multiplier. Keep your hour counts clean, confirm whether your state adds any rules, and the formula will do the rest. When in doubt, verify the current federal standard directly with the US Department of Labor, and use the calculator above to check any paycheck in seconds.