This free online income calculator will calculate your over-time rate of pay based on your regular hourly rate, multiplied by the OT multiplier that applies to your job (time and a half, double time, triple time, etc.).
Plus, this calculator will also calculate the total gross overtime wages for a given number of OT hours worked. So if you want to know how much OT pay you will receive, just enter the number of hours and the calculator will instantly calculate it for you.
Finally, the calculator will even estimate your total annual overtime wages based on the number of OT hours you work per pay period, and on your pay period type.
In case you're not familiar with the term, overtime (often referred to as "OT") is a term typically used to describe the excess of hours worked beyond 40 hours per week.
Your employer is required by federal law (Fair Labor Standards Act) to pay time and a half wages (regular hourly rate x 1.5) for all hours worked beyond 40 hours per week.
So if your regular hourly rate is $8.00, and you work 50 hours during a given workweek, you will end up receiving $120.00 in overtime wages ($8.00 x 1.5 = $12.00 x 10 OT hours = $120.00) for that week -- which is in addition to the 40 hours of regular wages.
Note that your state may offer greater overtime benefits (contact your state wage law office from this List of State Labor Offices) and your employer may offer higher benefits (more than 8 hours per day, double time, etc.) as part of their incentive package.
Also note that the U.S. Department of Labor provides an interactive FLSA Overtime Calculator Advisor that will walk you through the various stages and possible exemptions involved in determining you or your employees' overtime rate and wages.
As it applies to all hourly rates of pay, you are the one who ultimately determines how much compensation you receive from one hour of work.
If you spend the wages earned from one hour of work on a non-essential product or service, you have effectively limited your hour's worth of work to its face value.
In other words, if you earn $10 for 1 hour of work, and you spend it on a movie ticket, you have limited your wage for that hour to $10.
On the other hand, if you were to invest the $10 you received for one hour of work, you could effectively double, triple, (or more) your wage depending on the rate of return you earn and on how long you leave the wage invested.
So how do you double your overtime rate? The same way you would double your normal hourly rate. Invest your overtime wages and leave them invested until they double in value (refer to the bottom of this page for links to calculators that can calculate how much you can earn/save from your invested wages).
The really cool thing is, once your overtime investment has doubled, you can then withdraw your original overtime wage and leave the balance to continue to increase your compensation from that one hour of work.
But again, if you use your overtime wages to splurge on non-essentials, it is you who is limiting your compensation, not your employer.
With that, let's use the overtime calculator to calculate your overtime rate of pay, and if desired, your overtime wages for a given number of OT hours worked.
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Regular hourly rate: Enter your regular hourly rate of pay (the dollar sign is optional).
Overtime multiplier: Select the applicable overtime multiplier from the drop down menu (Time and a Half, Double Time, etc.), which will automatically enter the corresponding multiplier in the field to the right. If your multiplier option is not available in the drop down list, please select Other and enter the multiplier in the right-hand field on this line.
Overtime hours this/per pay period: Optional: If you would like the overtime calculator to calculate the gross overtime wages for a number of overtime hours worked, please enter the number of hours on this line. Otherwise, if you are only interested in the overtime rate of pay, leave the field blank.
Select your pay period: Optional: If you would like to see how much overtime wages you would earn in one year based on the number of overtime hours you entered in the line above, select your payroll period from the drop down list.
Overtime rate of pay: This is your regular hourly rate of pay multiplied the by the overtime multiplier entered above.
Overtime pay this/per pay period: This is your gross overtime wages for the number of hours entered above. If no hours were entered in the top section of the calculator the field will return N/A (not applicable).
Overtime pay per year: This is your gross overtime wages for the number of hours entered above, multiplied by the number of payroll periods in the year. If no hours were entered in the top section of the calculator the field will return N/A (not applicable).