Overtime Pay Calculator

The formula this calculator uses

Total pay = min(H, T) x R + max(0, H - T) x R x M

H

Hours worked in the period

T

Threshold before overtime starts, often 40 hours a week

R

Base hourly rate

M

Overtime multiplier — 1.5 for time and a half, 2 for double time

How to check the result by hand

1. 1

   Find the threshold that actually applies

   Establish whether the rule is a weekly threshold such as 40 hours, a daily threshold such as 8 hours, or both. The number decides how the week is split, and it comes from local law and the contract rather than from a default. Write it down before doing any arithmetic.

2. 2

   Split the hours into a standard band and an overtime band

   Standard hours are min(H, T); overtime hours are max(0, H - T). For 45 hours against a 40-hour threshold that gives 40 standard and 5 overtime. Keeping the two bands apart is what stops the multiplier from leaking onto the wrong hours.

3. 3

   Price the standard band at the base rate

   Multiply the standard hours by the base rate: 40 x $20 = 800. These hours never attract the multiplier, no matter how large the multiplier is or how many overtime hours follow them.

4. 4

   Price the overtime band at the base rate times the multiplier

   Multiply only the overtime hours by the base rate and the multiplier: 5 x $20 x 1.5 = 150. Applying the multiplier to the whole 45 hours instead is the mistake that inflates this band and the total.

5. 5

   Add the bands and divide by total hours

   Total pay is 800 + 150 = 950. Divide by all 45 hours to get the effective rate of 21.1111111 per hour. The gap above the nominal $20 is the visible effect of the overtime premium.