Overtime can make a paycheck jump, but it also makes the math of it less obvious. If you are trying to reconcile hours with gross pay, small details like an unpaid meal break or a bonus that changes your regular rate can throw off the result. When the numbers do not match your paycheck, it can be extremely frustrating.
This guide walks through a gross pay with overtime calculation, a step-by-step example, and the most common reasons overtime pay looks wrong.
Gross pay with overtime calculation (the formula)
Start by separating regular hours from overtime hours. The U.S. Department of Labor notes that non-exempt employees generally earn overtime at one and one-half times the regular rate for hours over 40 in a workweek.
Gross pay = (regular hours * hourly rate) + (overtime hours * hourly rate * overtime multiplier)
That time and a half formula is the core of most overtime pay calculation checks.
If you just need the base formula without overtime, see gross pay from an hourly wage.
Most jobs use a 1.5x multiplier, but some states or union agreements require double time for certain hours. Use the multiplier that applies to your situation.
Step-by-step gross pay with overtime example
Here is a gross pay with overtime calculation example for $24 per hour, 40 regular hours, and 6 overtime hours in a week.
| Line item | Calculation | Amount |
|---|---|---|
| Regular pay | $24.00 * 40 hours | $960.00 |
| Overtime rate | $24.00 * 1.5 | $36.00 |
| Overtime pay | $36.00 * 6 hours | $216.00 |
| Gross weekly pay | $960.00 + $216.00 | $1,176.00 |
Methodology: Gross pay = (regular hours * rate) + (overtime hours * rate * 1.5).
Six overtime hours adds $216 to the week. If that happens twice a month, that is $432 more in gross pay before taxes and deductions.
When overtime starts (and when it doesn't)
Overtime is usually based on a 40-hour workweek, not the pay period. Salaried employees can still be non-exempt, and hourly employees can be exempt depending on their role and duties. Do not assume overtime starts after 8 hours in a day or that salary automatically means no overtime.
Some states and union agreements add daily overtime or double time rules. If your state has additional requirements, those rules apply on top of the federal baseline.
How your overtime rate is calculated
Your overtime rate is tied to your regular rate of pay. The Department of Labor explains that certain nondiscretionary bonuses and shift differentials must be included in the regular rate, which can raise overtime pay. Discretionary bonuses may not count.
This is why two overtime weeks with the same hours can pay differently if one week includes a shift premium or attendance bonus.
Multiple pay rates in one week (weighted overtime)
If you work two different hourly rates in the same workweek, payroll usually calculates a weighted regular rate.
Regular rate = total straight-time earnings / total hours
Example: 30 hours at $20 and 20 hours at $24 equals $1,080 over 50 total hours, so the regular rate is $21.60. The overtime rate is $32.40 (1.5 * $21.60). Ten overtime hours at $32.40 equals $324 in overtime pay, which puts gross pay at $1,188 for the week.
Some payroll systems show this as straight-time pay for all hours plus a half-time premium for overtime hours. The total gross pay is the same either way.
Common reasons your overtime pay looks wrong
I have helped family members build budgets, and overtime weeks are where the pay stub details usually matter most.
- Unpaid breaks or missed punches. Paid hours matter more than scheduled hours.
- Overtime tracked by workweek. A long week split across two pay periods can still trigger overtime.
- Weighted regular rate. Multiple hourly rates can lower or raise the overtime rate.
- Premiums and bonuses. Shift differentials or nondiscretionary bonuses can increase the regular rate.
- State or union rules. Daily overtime or double time can change the math.
If you skip overtime to protect your health or family time, that is completely fine. Just base your budget on regular hours so you are not counting on extra pay that might not happen.
If you want to compare a regular week to an overtime week, the Salary to Hourly Calculator runs both scenarios using the same hourly rate and overtime assumptions.
See your overtime impact fast. Enter your hourly rate and overtime hours to compare weekly, monthly, and annual gross pay.
Open the calculatorBottom line
Gross pay with overtime is straightforward when you separate regular hours from overtime hours and apply the right multiplier. The hard part is making sure your paid hours and regular rate are correct.
If your paycheck still looks off, compare your hours to your pay stub, then ask payroll how they treat bonuses, premiums, or multiple rates. Clarity beats guessing.
Sources
Assumptions: Examples assume non-exempt overtime paid at time-and-a-half after 40 hours in a workweek and gross pay before taxes or deductions.
Important Disclosure: This article is for educational purposes and isn't personalized financial advice. Consult a qualified professional for decisions specific to your situation.