How overtime pay actually adds up
Your paycheck stacks three layers: regular hours at your base wage, overtime hours at a higher multiplier, and — on holidays or long days — double-time hours at a higher one still. The headline number most people miss is the premium: the extra dollars the multipliers add over what those same hours would have earned at straight time. That premium, not the gross, is what overtime is really worth to you.
The overtime formula
Gross = (Rh · rate) + (OTh · rate · OT×) + (DTh · rate · DT×)
where Rh = regular hours, OTh = overtime hours (usually 1.5×), and DTh = double-time hours (usually 2×). The effective hourly rate is the gross divided by total hours — your real blended pay.
What makes this calculator different
- Two tiers in one pass. Most overtime calculators only do time-and-a-half. We handle double-time too — essential for holidays and California's daily-overtime rules.
- The overtime premium, isolated. See exactly how many extra dollars the multipliers put in your pocket above straight pay.
- Your true blended rate. The effective hourly rate shows what every hour you worked actually averaged out to.
- Every pay period. Weekly, biweekly, monthly, and annual gross — so the numbers match whatever cadence your employer pays on.
Frequently asked questions
How is overtime pay calculated?+
Overtime pay is your regular hourly rate multiplied by an overtime rate, then by the number of overtime hours. The most common rate is time-and-a-half (1.5×), so a $25/hr worker earns $37.50 for each overtime hour. Your total gross pay is regular hours at the base rate, plus overtime hours at the overtime rate, plus any double-time hours at the double-time rate. This calculator computes all three tiers and adds them up for you.
What is the difference between time-and-a-half and double-time?+
Time-and-a-half (1.5×) is the standard federal overtime rate — half again your normal wage for each overtime hour. Double-time (2×) pays twice your normal wage and is not required by federal law; it usually comes from state rules, union contracts, or company policy. In California, for example, double-time kicks in after 12 hours in a single day or for hours past 8 on the seventh consecutive day worked. Enter both tiers above to see them combined.
When does the 40-hour overtime rule apply (FLSA, exempt vs non-exempt)?+
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least time-and-a-half for hours worked beyond 40 in a workweek. Exempt employees — typically salaried workers in executive, administrative, or professional roles who earn above a salary threshold — are not entitled to overtime. Whether you are exempt depends on your duties and pay, not just your job title.
What is daily overtime, and how does California differ?+
Most states follow the federal weekly rule: overtime applies only after 40 hours in a week. A handful of states add daily overtime. California is the strictest — time-and-a-half applies after 8 hours in a day (and after 40 in a week), and double-time applies after 12 hours in a day or beyond 8 hours on the seventh consecutive workday. Because this calculator handles both overtime and double-time tiers, you can model these daily rules by entering the hours in each bucket.
Is overtime taxed at a higher rate?+
No. Overtime pay is taxed at the same rates as the rest of your income — there is no special "overtime tax". It can feel like more is withheld because a larger paycheck may push that pay period into a higher withholding bracket, but your actual tax owed is based on annual income, and any over-withholding is refunded. The figures here are gross pay, before any taxes or deductions.
Disclaimer: This calculator is for educational purposes only and shows gross pay before taxes, withholding, and deductions. Overtime eligibility and rates vary by federal, state, and local law, by union contract, and by employer policy. It is not legal, tax, or financial advice.