The basic overtime formula is your hourly rate multiplied by the overtime multiplier multiplied by overtime hours. A common multiplier is 1.5x, though workplace rules and local laws can vary.
Regular pay versus overtime pay
Start by calculating your regular earnings for the week. Then calculate overtime separately. That helps you see how much of the final check came from standard hours and how much came from the premium rate.
If your hourly rate is $20 and your overtime multiplier is 1.5, then overtime hours pay $30 each. Ten overtime hours would add $300 to the week.
Why overtime feels powerful
Once the multiplier kicks in, each extra hour is worth more than your normal hour. That can be useful for short-term savings goals, bill catch-up, or seasonal income spikes. It can also distort your budget if you start treating overtime as guaranteed income.
Use overtime carefully in planning
- Budget with base pay first
- Use overtime for extra savings or debt payoff when possible
- Remember taxes and deductions may still reduce the final deposit
Use the calculator next
Plug in your hourly rate, regular hours, overtime hours, and multiplier to estimate the full week. It is especially helpful when your hours are bouncing around from week to week.