How Is Overtime Pay Calculated? Formula, Examples, and Time-and-a-Half
7 min read • June 24, 2026
Overtime pay is usually calculated by multiplying your regular hourly rate by an overtime multiplier, then multiplying that overtime rate by the number of overtime hours worked.
In many U.S. jobs, overtime is paid at time and a half, which means eligible workers earn 1.5 times their regular hourly rate for overtime hours.
The basic overtime formula is:
Regular Hourly Rate × 1.5 = Overtime Hourly Rate
Then:
Overtime Hourly Rate × Overtime Hours = Overtime Pay
For example, if you earn $20 per hour and work 5 overtime hours, your overtime rate would be $20 × 1.5 = $30 per overtime hour, and your overtime pay would be $30 × 5 = $150.
Overtime can make a big difference in your paycheck, especially if you regularly work more than 40 hours per week. Try our Overtime Calculator to run the numbers for your own rate.
Quick Answer: Overtime Pay Formula
| Step | Formula | Example |
|---|---|---|
| Regular Rate | Hourly wage | $20/hour |
| Overtime Multiplier | Regular rate × 1.5 | $20 × 1.5 |
| Overtime Rate | Time-and-a-half rate | $30/hour |
| Overtime Pay | Overtime rate × overtime hours | $30 × 5 = $150 |
So if you earn $20 an hour and work 5 overtime hours, your overtime pay is $150 before taxes.
What Is Time-and-a-Half?
Time-and-a-half means you are paid one and a half times your regular hourly rate. The math is simple: Time-and-a-half = Regular hourly rate × 1.5.
| Regular Hourly Rate | Time-and-a-Half Overtime Rate |
|---|---|
| $15/hour | $22.50/hour |
| $20/hour | $30.00/hour |
| $25/hour | $37.50/hour |
| $30/hour | $45.00/hour |
| $40/hour | $60.00/hour |
How to Calculate Total Pay With Overtime
To calculate your total weekly pay with overtime, add your regular pay and overtime pay: Regular Pay + Overtime Pay = Total Gross Pay.
Let's say you earn $20 per hour and work 45 hours in one week. Your first 40 hours are regular: $20 × 40 = $800. Your extra 5 hours are overtime: $20 × 1.5 = $30 overtime rate, so $30 × 5 = $150 overtime pay. Total gross pay: $800 + $150 = $950.
Overtime Pay Example by Hours Worked
Here is how overtime can change your weekly paycheck if you earn $20 per hour:
| Hours Worked | Regular Pay | Overtime Pay | Total Gross Pay |
|---|---|---|---|
| 40 hours | $800 | $0 | $800 |
| 42 hours | $800 | $60 | $860 |
| 45 hours | $800 | $150 | $950 |
| 50 hours | $800 | $300 | $1,100 |
| 55 hours | $800 | $450 | $1,250 |
| 60 hours | $800 | $600 | $1,400 |
This assumes overtime begins after 40 hours in the workweek and is paid at time and a half.
Overtime Pay Examples by Hourly Rate
Here is what 5 overtime hours would look like at different hourly wages:
| Regular Hourly Rate | Overtime Rate | 5 Overtime Hours |
|---|---|---|
| $15/hour | $22.50/hour | $112.50 |
| $20/hour | $30.00/hour | $150.00 |
| $25/hour | $37.50/hour | $187.50 |
| $30/hour | $45.00/hour | $225.00 |
| $35/hour | $52.50/hour | $262.50 |
| $40/hour | $60.00/hour | $300.00 |
The higher your hourly rate, the more each overtime hour is worth. Want to know what those hourly rates work out to annually? See How Much Is $20 an Hour Per Year? and How Much Is $30 an Hour Per Year?.
Does Overtime Start After 8 Hours or 40 Hours?
For many U.S. workers covered by federal overtime rules, overtime is based on hours worked over 40 hours in a workweek. However, some states have additional overtime rules — such as daily overtime, special industry rules, or extra worker protections. Always check the rules that apply to your job, your state, and your employer.
For a general estimate, many overtime calculators use the standard weekly formula: Hours over 40 × Regular rate × 1.5.
What Counts as Overtime Hours?
Overtime hours are usually the hours worked beyond the overtime threshold that applies to your job. For many hourly employees, that means hours worked over 40 in a single workweek:
- If you work 40 hours, you may have 0 overtime hours.
- If you work 45 hours, you may have 5 overtime hours.
- If you work 50 hours, you may have 10 overtime hours.
Your employer's workweek does not always have to match a calendar week. A workweek can begin on a different day and time, as long as it is fixed and recurring.
Can You Average Two Weeks Together?
In general, overtime is calculated by workweek, not by averaging multiple weeks together. Suppose you work 50 hours in Week 1 and 30 hours in Week 2 — that averages to 40 hours per week, but it does not necessarily erase the overtime from Week 1. If overtime applies after 40 hours in a workweek, Week 1 may still include 10 overtime hours. Track hours carefully each week.
Is Overtime Pay Before or After Taxes?
Overtime pay is part of your gross wages, calculated before taxes and deductions. Your paycheck may show regular earnings, overtime earnings, gross pay, taxes withheld, benefit deductions, retirement contributions, and net pay. Overtime increases your gross paycheck, but your take-home pay will be lower after taxes and deductions.
Are Salaried Workers Eligible for Overtime?
Some salaried workers may be eligible for overtime, and some may not be. Being paid a salary does not automatically exclude a worker from overtime. Eligibility can depend on job duties, pay structure, salary level, and whether the employee is classified as exempt or non-exempt. If you are salaried and regularly work more than 40 hours per week, it may be worth reviewing your classification with your employer or payroll department. You can also use the Salary to Hourly Calculator to convert your salary into an effective hourly rate.
Common Overtime Mistakes
- Forgetting to count all hours worked
- Assuming overtime is based on a two-week average
- Using the wrong hourly rate
- Not including certain types of pay in the regular rate
- Confusing holiday pay with overtime pay
- Assuming all salaried workers are automatically exempt
- Not checking state overtime rules
If your paycheck does not look right, compare your hours, rate, and overtime calculation carefully.
How to Estimate Overtime Pay Quickly
- Find your regular hourly rate.
- Multiply your hourly rate by 1.5.
- Count your overtime hours.
- Multiply your overtime rate by your overtime hours.
- Add overtime pay to your regular pay.
Example: Regular hourly rate $25 → overtime rate $25 × 1.5 = $37.50. With 8 overtime hours: $37.50 × 8 = $300. Regular pay: $25 × 40 = $1,000. Total gross pay: $1,000 + $300 = $1,300.
Want to compare hourly to annual pay? Use the Hourly to Salary Calculator, and if you're up for a raise, the Pay Raise Calculator.
Frequently Asked Questions
How is overtime pay calculated?
Overtime pay is commonly calculated by multiplying your regular hourly rate by 1.5, then multiplying that overtime rate by the number of overtime hours worked.
What is time-and-a-half for $20 an hour?
Time-and-a-half for $20 an hour is $30 per hour.
What is overtime pay for 45 hours at $20 an hour?
If overtime starts after 40 hours, then 45 hours includes 5 overtime hours. At $20 an hour, the overtime rate is $30. Total gross pay would be $950 before taxes.
What is overtime pay for $25 an hour?
At $25 an hour, time-and-a-half is $37.50 per hour.
Is overtime calculated weekly or biweekly?
Overtime is often calculated by workweek, not by averaging two weeks together. Some state rules may vary, so check the rules that apply to your job.
Do taxes come out of overtime pay?
Yes. Overtime pay is generally treated as taxable wages and may have taxes and other deductions withheld.
Do all employees get overtime?
No. Overtime eligibility depends on worker classification, job duties, pay structure, and applicable federal or state rules.
Final Thoughts
Overtime pay is usually calculated by multiplying your regular hourly rate by 1.5, then multiplying that overtime rate by your overtime hours. For example, if you earn $20 an hour, your overtime rate at time and a half is $30 per hour. If you work 5 overtime hours, your overtime pay is $150 before taxes.
Overtime can significantly increase your paycheck, but it is important to understand how your hours, hourly rate, workweek, and deductions affect your final pay. Use PayRatePro's free Overtime Calculator to estimate your regular pay, overtime pay, and total gross pay before your next paycheck.
Disclaimer: This article is for general informational purposes only and is not legal, payroll, or tax advice. Overtime rules vary by job, employer, state, and individual circumstances. Consult a qualified professional for advice specific to your situation.