How the Salary Calculator With Overtime works
This tool computes gross pay for a workweek that includes overtime hours, then projects that weekly figure to an annual total. It uses the standard overtime formula applied by U.S. payroll systems for nonexempt hourly employees: regular hours are paid at the base hourly rate, and overtime hours are paid at a multiple of that rate.
The formula
For an hourly rate R, regular hours Hr, overtime hours Ho, and an overtime multiplier m (commonly 1.5):
Regular pay = R × Hr
Overtime pay = R × m × Ho
Total weekly gross pay = Regular pay + Overtime pay
To estimate annual gross pay, the weekly total is multiplied by the number of weeks worked per year (52 for a full year with no unpaid time off).
Worked example
Take an hourly rate of $25, with 40 regular hours and 5 overtime hours in a week at the standard 1.5x multiplier. Regular pay is $25 × 40 = $1,000. Overtime pay is $25 × 1.5 × 5 = $187.50. Total weekly gross pay is $1,187.50, which projects to about $61,750 over 52 weeks.
What counts as overtime
Under the U.S. Fair Labor Standards Act (FLSA), most nonexempt hourly employees must be paid at least 1.5 times their regular rate for hours worked beyond 40 in a single workweek. Some states set a lower weekly threshold, add daily overtime after 8 hours in a day, or require double time (2x) after a set number of hours or on specific days — check your state's labor rules or your union contract for the exact multiplier and threshold that applies to you.
Gross pay versus take-home pay
This calculator reports gross pay — the amount before taxes and deductions. Take-home pay is lower after federal and state income tax withholding, FICA (Social Security 6.2% + Medicare 1.45%), and any benefit deductions such as health insurance or retirement contributions. Use the gross figures here as an input to a separate paycheck or tax calculator to estimate take-home pay.