Free payroll planning tool
Overtime Cost Calculator
Estimate regular payroll, overtime payroll, the overtime premium and the total employer cost of extra hours across one employee group or an entire workforce.
Simple overtime cost
Per workforce groupCalculate weekly and annual overtime expense
Workforce & hours
Pay assumptions
Simple methodRegular payroll = employees × regular hours × base rate. Overtime payroll = employees × overtime hours × base rate × overtime multiplier. The overtime premium is the extra amount above straight-time pay for those overtime hours. Payroll burden is applied to total wages using the percentage you enter.
Advanced overtime cost
4 workforce groupsModel overtime across multiple employee groups
Workforce groups
GroupEmployeesBase rateRegular hrs/wkOT hrs/wkOT multiplier
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Employer burden & annualization
Staffing comparison
Advanced methodEach group is calculated separately using its entered rate, regular hours, overtime hours and overtime multiplier. Employer burdens are applied to total wages. The staffing comparison asks how many new hires would be needed to cover the same weekly overtime hours and compares their first-year loaded cost with the annual overtime-related employer cost.
Group breakdown
Weekly and annual viewOvertime cost by workforce group
| Group | Employees | OT hrs / week | OT rate | Weekly OT payroll | Weekly premium | Annual OT payroll |
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Overtime-hours sensitivity
All group OT hours scaled togetherCost as overtime hours rise or fall
| OT-hours scale | Weekly OT hours | Annual OT payroll | Annual OT premium | Annual OT employer cost | New hires equivalent |
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Overtime-multiplier sensitivity
All group multipliers replaced by scenario valueCost at different overtime pay multipliers
| OT multiplier | Annual OT payroll | Annual premium | Annual OT employer cost | Cost / OT hour |
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Staffing comparison
First-year new-hire economicsOvertime versus adding employees
| New-hire hourly rate | New hires needed | First-year new-hire cost | Annual OT-related cost | Difference | Lower-cost option |
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Scope
Use the overtime multiplier that actually applies
This calculator is a payroll-planning tool, not a wage-law compliance tool. Overtime eligibility, the regular rate used for overtime calculations, exempt status, collective bargaining terms, alternative work schedules and applicable overtime multipliers can vary by jurisdiction and employee circumstance. Enter the rate and multiplier appropriate to your situation and verify payroll treatment with qualified payroll, HR or legal guidance when needed.