Why overtime adds up fast
Overtime pay is not just "a bit extra" — at 1.5x, five overtime hours are worth 7.5 regular hours. Because the multiplier applies only to hours past your regular threshold, working consistent overtime can meaningfully raise your effective hourly rate (your total pay divided by total hours), which is often the more useful number for comparing pay across jobs.
Turning weekly pay into a yearly picture
The yearly estimate assumes this same weekly pattern for 52 weeks — useful for budgeting or comparing against a salaried offer. If your overtime is seasonal rather than constant, treat the annual figure as an upper estimate. See the Salary to Hourly Calculator to compare against a fixed annual salary directly.
Frequently asked questions
How is overtime pay calculated?
Overtime hours are paid at a multiple of your regular hourly rate — typically 1.5x ("time and a half"), sometimes 2x ("double time") for holidays or very long shifts. Regular hours are paid at your normal rate; only the overtime hours get the multiplier.
When do I qualify for overtime?
Rules vary by country and job type — in the US, non-exempt hourly employees generally earn overtime for hours worked beyond 40 in a week under the FLSA. Check your local labor law or employment contract for your exact threshold.
Does this include taxes?
No — this shows gross overtime and total pay before tax. Extra income can also push you into a higher tax bracket for that pay period, so your actual take-home increase may be a little smaller than the gross figures shown here.
How do I find my effective hourly rate with overtime?
Divide your total pay (regular + overtime) by your total hours worked. This calculator shows that figure automatically — it is often meaningfully higher than your base rate once overtime is included.
Last updated: June 2026