How are overtime hours calculated?

Subtract the regular hours threshold from your total hours. If the result is positive, that is your overtime; if it is zero or negative, you have no overtime. For 45 hours with a 40-hour threshold, overtime is 5 hours.

How is overtime pay calculated?

Multiply your base rate by the overtime multiplier to get the overtime rate, then multiply that by your overtime hours. Add the regular pay (regular hours × base rate) to get the total. The Overtime Calculator does every step.

What is time-and-a-half?

An overtime multiplier of 1.5×, so overtime hours are paid at 150% of your base rate. At $20/hour the overtime rate is $30/hour.

An overtime multiplier of 2×, so overtime hours are paid at twice your base rate. At $20/hour the double-time rate is $40/hour.

Is overtime always 1.5× after 40 hours?

Not necessarily. 40 hours and 1.5× are common defaults, but the threshold and multiplier are set by your contract, union agreement or local law. Check what applies to you before relying on a calculation.

Work & Hours

Overtime Hours Explained

Overtime is the hours you work above a set threshold, usually paid at a higher rate. This guide explains the maths — regular vs overtime hours, thresholds, multipliers and pay — with worked examples. It does not state any jurisdiction's overtime rules: actual entitlement depends on your employer, your contract and the law that applies to you.

Regular vs overtime hours

Hours up to the threshold are regular hours, paid at your base rate. Hours above the threshold are overtime hours, paid at a higher rate. If you work fewer hours than the threshold, all your hours are regular and overtime is zero.

Regular Hours = min(Total Hours, Threshold)
Overtime Hours = max(Total Hours − Threshold, 0)

For 45 hours with a 40-hour threshold: regular = 40, overtime = 5. For 38 hours with a 40-hour threshold: regular = 38, overtime = 0. The Overtime Calculator does this split from your total and threshold.

The threshold

The threshold is the number of hours after which overtime starts. 40 hours a week is the most common default, but it is set by your contract, union agreement or local law — not by maths. Some situations use a daily threshold (hours above 8 in a day), a weekly threshold, or both. Always check which threshold applies to you before relying on a calculation.

The multiplier

Overtime hours are paid at your base rate multiplied by an overtime multiplier. The most common multiplier is 1.5× (time-and-a-half), which pays overtime at 150% of your base rate. Double time is 2×, paying overtime at 200%. Some agreements use 1.25×, 2.5× or other values for specific situations.

Overtime Rate = Base Rate × Overtime Multiplier

At $20/hour and 1.5×, the overtime rate is $20 × 1.5 = $30/hour. At $20/hour and 2× (double time), it is $40/hour.

The pay formula

Total pay is regular pay plus overtime pay:

Regular Pay = Regular Hours × Base Rate
Overtime Pay = Overtime Hours × Overtime Rate
Total Pay = Regular Pay + Overtime Pay

Only the hours above the threshold get the multiplier. Regular hours are always paid at the base rate — a common mistake is multiplying all hours by the overtime rate.

Worked example: time-and-a-half

45 hours, $20/hour, 40-hour threshold, 1.5× multiplier.

Regular hours: 40
Overtime hours: 5
Regular pay: 40 × $20 = $800.00
Overtime rate: $20 × 1.5 = $30/hour
Overtime pay: 5 × $30 = $150.00
Total pay: $800.00 + $150.00 = $950.00

Worked example: double time

48 hours, $18/hour, 40-hour threshold, 2× multiplier (double time on the overtime portion).

Regular hours: 40 · Overtime hours: 8
Regular pay: 40 × $18 = $720.00
Overtime rate: $18 × 2 = $36/hour
Overtime pay: 8 × $36 = $288.00
Total pay: $720.00 + $288.00 = $1,008.00

Worked example: under the threshold

36 hours, $22/hour, 40-hour threshold.

Regular hours: 36 · Overtime hours: 0
Regular pay: 36 × $22 = $792.00
Overtime pay: $0.00
Total pay: $792.00

No multiplier applies because no hours exceed the threshold.

Hours without pay

If you only want the regular/overtime split, leave the hourly rate blank. The Overtime Calculator still splits your total into regular and overtime hours and hides the monetary results until you add a rate. This is useful when you know your hours but have not agreed a rate yet.

Decimal hours and overtime

Overtime calculations use decimal hours, so convert first. 7h 45m is 7.75 decimal hours, not 7.45 — minutes are divided by 60, not treated as cents. A weekly total of 47h 30m is 47.50 decimal hours, which against a 40-hour threshold gives 40.00 regular and 7.50 overtime. See the Time & Decimal Hours Reference for the conversion table.

Where overtime fits in the workflow

Typically you total your week first, then split it into regular and overtime. The Timesheet Calculator and Time Card Calculator total weekly hours with optional per-week overtime; the Overtime Calculator takes a total and splits it with a pay estimate. For the full timesheet workflow, see Timesheet Hours & Payroll Calculations Explained, and for shift-level hours see How to Calculate Work Hours Correctly.

Common mistakes

Multiplying all hours by the overtime rate. Only the hours above the threshold get the multiplier. Regular hours stay at the base rate.
Using the wrong threshold. Overtime starts at the threshold that applies to you, not always 40 hours. Check your contract or local rules.
Assuming 1.5× is required. Time-and-a-half is common but not universal. Some agreements use 1.25×, 2× or 2.5×.
Incorrect decimal conversion. 30 minutes is 0.50 hours, not 0.30. Convert with minutes ÷ 60.
Forgetting the base regular pay. Total pay is regular pay plus overtime pay, not just the overtime portion.
Applying a weekly threshold to a biweekly total. For biweekly periods, compare each week to the threshold separately unless your rules say otherwise.

A note on entitlement

This guide explains the arithmetic of overtime. Whether you are entitled to overtime, what your threshold and multiplier are, and whether daily, weekly or other rules apply all depend on your employer, your contract and the law of the jurisdiction where you work. If you are unsure, check your agreement or consult a qualified advisor before relying on any figure.

FAQs

How are overtime hours calculated?: Subtract the regular hours threshold from your total hours. If the result is positive, that is your overtime; if it is zero or negative, you have no overtime. For 45 hours with a 40-hour threshold, overtime is 5 hours.
How is overtime pay calculated?: Multiply your base rate by the overtime multiplier to get the overtime rate, then multiply that by your overtime hours. Add the regular pay (regular hours × base rate) to get the total. The Overtime Calculator does every step.
What is time-and-a-half?: An overtime multiplier of 1.5×, so overtime hours are paid at 150% of your base rate. At $20/hour the overtime rate is $30/hour.
What is double time?: An overtime multiplier of 2×, so overtime hours are paid at twice your base rate. At $20/hour the double-time rate is $40/hour.
Is overtime always 1.5× after 40 hours?: Not necessarily. 40 hours and 1.5× are common defaults, but the threshold and multiplier are set by your contract, union agreement or local law. Check what applies to you before relying on a calculation.
How do I calculate overtime without an hourly rate?: Leave the rate blank. The Overtime Calculator still splits your total into regular and overtime hours; it just hides the pay figures until you enter a rate.