Overtime Pay Explained: Hours, Multipliers and Gross Wages
Learn the arithmetic behind overtime pay and why legal overtime eligibility is a separate question.
Basic overtime formula
Overtime earnings equal overtime hours multiplied by the regular hourly rate and an overtime multiplier. Regular earnings equal regular hours multiplied by the hourly rate.
Worked example
At $20 per hour for 40 regular hours and 5 overtime hours paid at 1.5×, regular wages are $800, overtime wages are $150, and combined gross wages are $950.
Time-and-a-half versus double time
A multiplier of 1.5× pays $30 per overtime hour for a $20 rate; 2× pays $40. Use the multiplier applicable to the employment arrangement.
Overtime rules vary
Under US federal law, covered nonexempt employees generally receive overtime pay after 40 hours in a workweek. State laws, exemptions, qualifying pay components and employment arrangements can change the result.
Gross pay is not take-home pay
This calculation excludes income and payroll taxes, deductions, bonuses and other components that can affect actual pay. Verify eligibility and the regular rate with the appropriate payroll rules.
Try your own numbers
Use the interactive calculator to compare scenarios. The results are estimates based on your chosen inputs.
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Educational information only. Check applicable rules, rates and product terms; this guide is not individualized financial, tax, employment or legal advice.