How to Calculate Overtime Pay

A simple hourly example

Assume a $20 hourly rate, 45 worked hours in one workweek, and a 1.5× rate after 40 hours. Regular pay is 40 × $20 = $800. Overtime pay is 5 × $30 = $150. Estimated gross pay is $950 before taxes and other deductions.

This example assumes the base hourly rate is the relevant regular rate and there are no additional compensation items. Under the U.S. federal rules, the regular rate can include more than an hourly wage; a simple rate entry does not model every payroll arrangement.

Choose the rule; do not assume the tool knows it

1. Enter worked periods and only unpaid deductions in the table.
2. Open Payment in the toolbar, enter a rate and currency if estimating pay, and enable Overtime.
3. Choose Weekly or Daily, then inspect each threshold and multiplier or fixed hourly rate.
4. Review regular hours, overtime hours, each pay tier and Estimated Total Pay. Correct validation errors before using the result.

A two-week total of 80 hours can include overtime

With a weekly 40-hour threshold, 45 hours in week one and 35 in week two mean 75 regular hours plus 5 overtime hours. At $20 and 1.5×, the total estimate is 75 × $20 + 5 × $30 = $1,650. It is not $1,600 simply because the two weeks average 40 hours.

DOL Fact Sheet 23 describes a fixed, recurring 168-hour workweek for covered, nonexempt workers and says hours cannot be averaged over two or more weeks. The workweek need not begin on Monday. The weekly/biweekly table uses seven-row groups: align them with the intended workweeks.

Custom tiers are mathematical settings

For 56 hours at €20, a weekly tier of 1.5× after 40 hours and 2× after 50 yields 40 × €20 + 10 × €30 + 6 × €40 = €1,340. This illustrates the tier engine; it does not state that these thresholds apply in a particular location.

Federal U.S. overtime is generally due after 40 hours in a workweek for covered, nonexempt workers, not automatically after eight hours in a day or simply for weekend work. Daily, contractual and jurisdiction-specific rules require separate review. General examples are not personalized legal advice.

Check calendar boundaries and rate assumptions

A month or half-month can start halfway through a workweek. Missing days outside that visible period can change whether the threshold has been crossed. Use dated tools with their boundary warnings; do not divide a month into arbitrary seven-day blocks.

Read the pay-period comparison and monthly timesheet guide. For two full weeks, use the biweekly tool or blank biweekly template.