Payroll

Free Overtime Pay Calculator (OT Calculator)

Get an instant, policy-ready estimate without spreadsheets.

Calculator Inputs

Regular work time
/
hours /
USD /
Totals update after you click Calculate.
Overtime (OT)
x
USD / hour
hours /
USD / month
In total
USD / month

What This Calculator Does

Use this overtime calculator to estimate overtime payout by hourly rate, overtime hours, and multiplier.

It helps HR and payroll teams verify overtime values before running payroll.

Inputs Explained

  • Currency: Selection: use your policy-compliant value for accurate output.
  • Regular Pay: Numeric value: use your policy-compliant value for accurate output.
  • Regular Pay Period: Selection: use your policy-compliant value for accurate output.
  • Regular Work Time: Numeric value: use your policy-compliant value for accurate output.
  • Regular Work Time Period: Selection: use your policy-compliant value for accurate output.
  • Overtime Multiplier: Numeric value: use your policy-compliant value for accurate output.
  • Overtime Hours: Numeric value: use your policy-compliant value for accurate output.
  • Overtime Hours Period: Selection: use your policy-compliant value for accurate output.
  • Totals Period: Selection: use your policy-compliant value for accurate output.

Formula

Retail Overtime: Hourly Rate x Overtime Hours x Overtime Multiplier (policy based).

Example Calculation

  • Currency: USD
  • Regular pay: 20
  • Regular pay period: hour
  • Regular work time: 40
  • Regular work time period: week
  • Multiplier: 1.5
  • Overtime hours: 5
  • Overtime hours period: month
  • Output period: month
  • Regular Hourly Rate $20.00 / hr
  • Overtime Rate Multiplier 1.50x
  • Overtime Hourly Rate $30.00 / hr
  • Total Regular Pay (per month) $3,466.67
  • Total Overtime Pay (per month) $150.00
  • Total Pay (per month) $3,616.67

Frequently Asked Questions

What multiplier should I use?

Use your policy or labor-law multiplier, commonly 1.25, 1.5, or 2.0.

Does this include allowances?

No, this computes overtime pay only from the inputs you provide.

Can I calculate monthly totals?

Yes. Enter total overtime hours for the month.

Related Tools

Understanding Overtime Pay: A Complete Guide

Overtime pay affects every hourly worker, shift team, and payroll department. Whether you're verifying your own earnings or processing payroll for hundreds of employees, understanding exactly how overtime is calculated — and where the rules differ — prevents costly errors and keeps you compliant.

What Is Overtime Pay?

Overtime pay is the additional compensation earned when an employee works beyond their standard scheduled hours. In most countries the standard threshold is 8 hours per day or 40 hours per week — but the exact rule depends on your country, industry, and employment contract.

The extra pay is calculated by multiplying the employee's regular hourly rate by an overtime multiplier. The most common multipliers globally are:

The Overtime Pay Formula Explained

Our calculator above uses this core formula:

Overtime Pay = Overtime Hours × (Hourly Rate × OT Multiplier)

Example: 10 OT hours × ($25.00/hr × 1.5) = $375.00 overtime pay

When you only have a monthly salary, the hourly rate is derived first:

Hourly Rate = Monthly Salary ÷ (Working Days per Month × Daily Hours)

Example: $4,400 ÷ (22 days × 8 hrs) = $25.00/hour

Then total monthly pay including overtime:

Total Pay = Regular Pay + (OT Hours × Hourly Rate × OT Multiplier)

Example: $4,400 + (10 × $25.00 × 1.5) = $4,400 + $375 = $4,775.00

Real-World Overtime Calculation Examples

Example 1 — US Hourly Employee (FLSA Standard)

An employee earns $18/hour and works 48 hours in one week (8 overtime hours at 1.5×):

Example 2 — Monthly Salaried Employee

A salaried employee earns $3,960/month (22 working days × 8 hours) and logs 15 overtime hours at 1.5×:

Example 3 — UAE Labour Law (1.25× Weekday / 1.5× Holiday)

Under UAE Labour Law No. 33/2021, regular overtime is 125% and holiday overtime is 150%. For an employee on AED 6,000/month with 10 weekday OT hours:

Overtime Rates by Country

Overtime multipliers and daily hour caps vary significantly across jurisdictions:

Country / Region Threshold Standard OT Rate Holiday / Rest Day Daily OT Cap
United States (FLSA)40 hrs/week1.5×No federal mandateNo federal cap
United Arab Emirates8 hrs/day1.25×1.5×2 hrs/day
Saudi Arabia8 hrs/day1.5×3 hrs/day
United KingdomContract-definedContract-definedContract-defined48 hrs/week avg
India9 hrs/day or 48 hrs/weekVaries by state
Philippines8 hrs/day1.25×No cap

Overtime Compliance: What HR Must Verify

Miscalculating overtime — even unintentionally — leads to underpayment claims, regulatory fines, and damage to employee trust. Before every payroll run, verify:

Employee Classification

Is the employee exempt or non-exempt? Exempt roles (managerial, professional) are generally not entitled to overtime pay regardless of hours worked.

Applicable Labor Law

FLSA (US), UAE Labour Law No. 33/2021, Saudi Labor Law — always apply the law of the country where the work is performed.

Hour Caps & Approvals

Most jurisdictions legally cap daily overtime. Unapproved overtime still must be paid but can result in disciplinary action if not pre-approved.

Record Keeping

All overtime hours must be documented and verifiable. Most labor laws require records to be retained for 2–5 years for audit purposes.

Pro tip: Use the Overtime Cap Checker to verify worked hours stay within your jurisdiction's legal limits before finalizing payroll — especially for UAE and Saudi payrolls with stricter daily caps.
Ready to calculate your overtime pay?

Use the calculator at the top of this page — enter your hours, rate, and multiplier for instant results.

Calculate Now ↑

When Should You Use an Overtime Calculator?

An overtime pay calculator is the right tool in many real-world HR and payroll situations:


More Questions About Overtime Pay

What is the difference between overtime and double time?

Overtime typically refers to the 1.5× rate for hours beyond the standard threshold. Double time (2×) is a higher rate applied in specific conditions — such as working on a public holiday, working beyond 12 consecutive hours, or as defined in a collective bargaining agreement. Not all jurisdictions have mandatory double time.

Can overtime be compensated with time off instead of pay?

In some jurisdictions (including parts of the EU and Canada), employers can offer compensatory time off (comp time) in lieu of overtime pay, provided the employee agrees. In the US, this is generally only permitted for public sector employees under FLSA. Private sector employees must receive overtime pay unless a specific exemption applies.

Does overtime apply to part-time employees?

It depends on your jurisdiction and contract terms. In the US, part-time employees are entitled to overtime only after they exceed 40 hours in a week — not after exceeding their usual part-time schedule. Some countries calculate overtime based on exceeding standard daily hours, which can affect part-time workers more quickly.

How does overtime interact with bonuses in payroll?

Non-discretionary bonuses (performance bonuses, shift differential bonuses) may need to be included in the regular rate of pay before calculating overtime — a common area of compliance errors. Under US FLSA, this means recalculating the "regular rate" to include the bonus, then applying the 1.5× multiplier to that adjusted rate.

What happens if overtime is not paid correctly?

Underpayment of overtime can result in back-pay claims covering up to 2–3 years of violations, civil penalties, and in some cases criminal liability for willful violations. Using an accurate overtime calculator and maintaining clear records is the most effective prevention.

Disclaimer: This calculator is for informational purposes only and does not constitute legal or financial advice. We do not guarantee the accuracy or completeness of the results. Please consult a qualified professional for advice specific to your situation.