This overtime calculator is a tool that finds out how much you will earn if you have to stay longer at work. All you have to do is provide some information about your hourly wages, and it will calculate what is the total pay you will receive this month. Keep reading to learn what is the time and a half pay, as well as what is the step-by-step process to calculate the overtime pay.
Make sure to take a look at our budget calculator as well.
What is time and a half?
Most companies are bound to pay you more if you work overtime. The most usual pay is time and a half - it means that for every hour of overtime, you receive an equivalent of 1.5 regular hourly wages. Of course, this value may vary across companies, so make sure to enter the correct multiplier into the overtime calculator.
Formulas for overtime pay
You can use some simple formulas to calculate the overtime salary. First of all, you have to calculate your hourly overtime wages:
HOP = HRP * m,
where HOP stands for hourly overtime pay, HRP for the hourly regular pay, and m for the multiplier (most typically 1.5).
Once you know this value, you can calculate your total overtime pay:
OP = HOP * n,
where OP is the overtime pay, and n is the number of overtime hours in a month.
Finally, if you want to find your total salary at the end of the month, you have to add it to your regular salary:
TP = OP + RP,
where TP stands for total pay and RP stands for regular pay. The second one is equal to the hourly regular pay multiplied by the number of working hours per month.
How to calculate overtime pay?
- Begin with specifying your regular pay. Let's assume you earn $10 an hour. Input this value into the overtime calculator. If you don't know what is is, you can use this salary to hourly calculator.
- The next step is determining the number of hours you normally work per month. Assuming four weeks, 40 hours each, you can enter 160 hours per month.
- Change the multiplier so that it corresponds to your company's overtime policy. For example, you company may pay the usual time and a half rate - the multiplier is equal to 1.5.
- Determine the number of hours you worked overtime this month. Let's say you worked 30 hours overtime.
- Our overtime will automatically find all other values - your regular pay, your overtime pay and their sum as the total salary you will receive this month.
Once you calculated your total pay, you can decide what to do with it - are you planning to spend it or maybe invest it?