How the Hourly to Salary with Overtime Calculator works
This tool converts an hourly wage into an annual salary, accounting for overtime hours paid at a higher rate. It splits weekly pay into a regular portion and an overtime portion, adds them together, and scales the result by the number of weeks you actually work in a year.
The formula
For an hourly rate R, regular hours per week Hreg, overtime hours per week Hot, an overtime multiplier M (typically 1.5 for time-and-a-half), and W weeks worked per year:
Weekly gross pay = R × Hreg + R × M × Hot
Annual salary = Weekly gross pay × W
Monthly salary is simply the annual figure divided by 12. All figures produced are gross pay — before federal and state income tax, FICA, or any deductions.
Worked example
Take an hourly rate of $25, 40 regular hours per week, 5 overtime hours per week at time-and-a-half (1.5x), worked 52 weeks a year. Regular weekly pay is $25 × 40 = $1,000. Overtime weekly pay is $25 × 1.5 × 5 = $187.50. Weekly gross pay is $1,187.50, so annual salary is $1,187.50 × 52 = $61,750, or about $5,145.83 per month. Overtime alone contributes $187.50 × 52 = $9,750 for the year — roughly 15.8% of total pay.
Overtime rules to know
- Federal baseline (FLSA): nonexempt U.S. employees are entitled to at least 1.5x their regular rate for hours worked beyond 40 in a single workweek.
- State variations: some states set stricter rules — for example, California requires 1.5x for hours over 8 in a day and 2x for hours over 12 in a day, in addition to the weekly threshold.
- Exempt employees: salaried employees who meet exemption tests (based on duties and minimum salary level) are generally not entitled to overtime pay at all, regardless of hours worked.
- Straight time: some employers or contract types pay all hours, including extra hours, at the base rate (1x) — select that option if no overtime premium applies to you.
What this calculator does not do
This is a gross-pay estimator, not a paycheck calculator. It does not withhold federal or state income tax, Social Security, Medicare, or any benefit deductions, and it does not know whether you are classified as exempt or nonexempt under labor law. Use it to estimate annualized gross earnings from an hourly rate and expected overtime — confirm your actual overtime eligibility and rate with your employer or a labor-law resource.