Hourly to Salary with Overtime Calculator

Background.

An hourly job with regular overtime is worth more than the base rate suggests, and the usual shortcut of multiplying the wage by 2,080 hours misses it entirely. Five extra hours a week at time-and-a-half are paid as seven and a half hours, and across a year that premium adds up to thousands of dollars.

The arithmetic here keeps the two kinds of hours apart. Regular hours are paid at your rate; overtime hours are paid at your rate times a multiplier; the weekly total is then scaled by the number of weeks you expect to work. The result is annual gross pay, before income tax, Social Security and Medicare, retirement contributions or health premiums come out.

In the United States the default multiplier of 1.5 reflects the federal Fair Labor Standards Act, which requires covered non-exempt employees to receive at least one and a half times their regular rate for hours over 40 in a workweek. Some employers pay more, and some states add daily overtime or double time, so the multiplier is left for you to set. The page applies whatever figure you give it and does not judge whether it is lawful.

Two things make real paychecks differ from this estimate. Overtime is rarely steady, so a figure of five hours a week should be your realistic average across the year, not your busiest month. And under federal rules the "regular rate" that overtime is built on can include non-discretionary bonuses and shift differentials, which would make your true overtime rate higher than your posted hourly wage. If either applies, treat the answer as a planning figure rather than a prediction of your W-2.

What is hourly to salary with overtime calculator?

Annualized gross pay with overtime is the yearly total of straight-time wages plus overtime wages, before any deductions. It treats each week as identical: the same regular hours, the same overtime hours and the same premium, repeated for the number of workweeks you enter. That makes it a steady-state projection, useful for comparing an hourly offer against a salaried one or for budgeting, but not a payroll calculation.

How to use this calculator.

1. 01Enter your hourly rate in dollars, using the base wage on your pay stub before any shift differential or bonus.
2. 02Enter regular hours per week, normally 40 for a full-time schedule, and your average overtime hours per week across the year. If you work no overtime, enter 0 hours and the figure is simply rate × regular hours × workweeks.
3. 03Set the overtime multiplier: 1.5 for standard time-and-a-half, 2 for double time. If you get a mix, use a weighted average, such as 1.75 for equal hours at each.
4. 04Enter the workweeks you are paid for. Use 52 if vacation and holidays are paid; subtract unpaid weeks off, for example 50 if you take two weeks unpaid.
5. 05Read the annual gross figure and compare it with a salaried offer or your budget, remembering that taxes and benefit deductions still come out of it.

The formula.

Annual pay = r × (H_reg + m × H_ot) × W. Here r is the hourly rate, H_reg the regular hours per week, H_ot the overtime hours per week, m the overtime multiplier and W the number of workweeks. The bracket converts a week's work into paid-hour equivalents: with m = 1.5, every overtime hour counts as one and a half regular hours. Multiplying by r gives weekly gross pay and multiplying by W gives the year. The rate and the weeks scale the result proportionally, while overtime hours have the strongest effect per hour because each one is weighted by the multiplier. All five inputs must be positive; the result is gross pay in whatever currency the rate is in, with no tax, deduction or benefit adjustment.

A worked example.

Frequently asked questions.

References& sources.

1. [1]U.S. Department of Labor, Fact Sheet #23: Overtime Pay Requirements of the FLSA.
2. [2]29 CFR Part 778, Overtime Compensation.
3. [3]BIPM, The International System of Units (SI Brochure), 9th ed., version 3.01, coherent derived units and quantity equations.