What this measures
Overtime rules are not the same everywhere. Some places calculate it weekly, some daily, and the threshold and rate both vary. Rather than guess at one country's rules, this calculator lets you set your own threshold and multiplier, so it works whether your overtime kicks in after 40 hours a week, 8 hours a day, or something else entirely.
The formula
Hours up to your threshold are paid at your normal rate. Hours above it are paid at your rate multiplied by whatever overtime rate you enter. If you turn on the second tier, hours above that higher threshold get their own, usually bigger, multiplier on top.
A quick example
Say you earn $30 an hour and work 45 hours in a week, with overtime starting after 40 hours at 1.5 times pay. The first 40 hours pay $1,200. The remaining 5 hours pay $225 (5 times $30 times 1.5), for a total of $1,425. Spread across all 45 hours, that works out to a blended rate of about $31.67 an hour.
Frequently asked questions
Why doesn't this just use my country's official overtime rule?
Because there isn't one single rule. Overtime thresholds and multipliers differ by country, and often by state or industry within the same country. Rather than build in one set of rules and get it wrong for everyone else, this calculator asks for your actual threshold and multiplier so it works correctly wherever you are.
What does the second tier actually model?
Some places pay an even higher rate once you work past a second, higher number of hours, often called double-time. Turn on the second tier and set that threshold and its multiplier, and hours worked beyond it are paid at the higher rate instead of the first overtime rate.
Does this handle daily and weekly overtime at the same time?
No, and it's worth being upfront about that. Some places require checking both a daily limit and a weekly limit together, then paying whichever is more generous, without double counting the same hours twice. That reconciliation is genuinely complex, so this tool sticks to one period and one set of thresholds at a time rather than risk getting the combined case wrong. Run it once for your daily rule and once for your weekly rule if you need to check both.
Can I use an annual salary instead of an hourly rate?
Yes. Switch "I know my" to annual salary above, and it converts to an hourly rate using a standard 2,080 hour work year (40 hours a week for 52 weeks). Whether a salaried role is even entitled to overtime pay depends on its classification where you work, which this calculator doesn't determine for you.
Is this legal advice or a compliance guarantee?
No. It's a planning estimate based on the numbers you enter. Overtime law is genuinely detailed and varies by location, so check your local rules or a qualified professional before relying on this for an actual pay dispute or payroll decision.