Overtime Pay Premium Calculator

About this calculator

Under standard overtime rules (such as the U.S. Fair Labor Standards Act), hours worked beyond the regular threshold are paid at 1.5 times the base hourly rate — the "time-and-a-half" rate — and some contracts or jurisdictions apply double-time (2x) for hours beyond a second threshold or for holiday work. The overtime premium is the extra amount paid above what those hours would have cost at the straight-time rate: overtime hours × base rate × 0.5 for time-and-a-half, or × 1.0 for double-time.

Payroll teams and employers use this figure to budget labor costs and to see how much a scheduling decision — an extra shift, a crunch week — actually adds to payroll beyond the base wage. The blended hourly rate, which divides total pay for the period by total hours worked, gives a single "effective" rate that's useful for comparing labor cost across pay periods with different amounts of overtime.

This calculator takes your base rate, regular hours and overtime hours, and returns the overtime premium cost plus the blended hourly rate for the pay period.