What is the standard overtime multiplier in the US?

Under the federal FLSA, non-exempt employees earn at least 1.5x their regular rate for all hours over 40 in a workweek. Some employers offer double-time (2x) for holidays or extreme hours, but there is no federal requirement for double-time.

Does overtime pay affect my annual salary estimate significantly?

Yes, especially for consistent overtime workers. Ten overtime hours per week at $20/hour adds $10 x 0.5 x 10 x 52 = $2,600 per year in premium pay on top of what a straight 50-hour calculation would suggest. Always separate regular and overtime hours in projections.

Are bonuses included in the regular rate for overtime purposes?

Non-discretionary bonuses (production bonuses, attendance bonuses, shift differentials) must be included in the regular rate before computing overtime. Purely discretionary bonuses are excluded. Including non-discretionary bonuses raises the regular rate and therefore the overtime premium.

Hourly Wage to Annual Salary with Overtime Calculator

Calculate your total annual earnings including overtime pay. Enter your hourly rate, regular hours, overtime hours per week, and the overtime multiplier to see gross weekly, monthly, and annual income.

By AbraCalc Editorial Team · Reviewed by AbraCalc Methodology Review · Last reviewed: 2026-06-25

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How to use this tool

Enter hourly pay rate, regular hours per week, overtime hours per week, overtime pay multiplier and weeks worked per year in the fields above.
Results update instantly as you type — or click Calculate.
Read your annual gross earnings and the full breakdown beneath it.

⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.

Formula

Regular Weekly Pay = Hourly Rate × Regular Hours

Weekly Overtime Pay = Hourly Rate × Overtime Multiplier × Overtime Hours

Annual Earnings = (Regular Weekly Pay + Weekly Overtime Pay) × Weeks per Year

How it works

Under the US Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate for all hours worked beyond 40 in a workweek. This calculator multiplies the overtime hours by the user-specified multiplier (default 1.5 for time-and-a-half) and adds that to regular earnings to compute total weekly and annual gross pay. All figures are pre-tax gross amounts.

Worked example

$20/hr, 40 Regular + 5 OT Hours/Week, 1.5x Overtime, 52 Weeks

Regular weekly pay = $20 × 40 hours = $800
Overtime rate = $20 × 1.5 = $30 per overtime hour
Weekly overtime pay = $30 × 5 hours = $150
Weekly total = $800 + $150 = $950
Annual gross = $950 × 52 weeks = $49,400; Monthly = $49,400 / 12 = $4,116.67

Annual gross earnings including overtime are $49,400, or $4,116.67 per month.

Common mistakes to avoid

Using the overtime multiplier as an additive rate rather than a total rate: if the multiplier is 1.5, the overtime rate is 1.5x the regular rate (not the regular rate plus 0.5x), so double-counting the base pay is a common error.
Forgetting that overtime hours reset each workweek: you cannot bank hours from a slow week against a busy week for overtime purposes under FLSA. A 30-hour week followed by a 50-hour week means 10 overtime hours in week two, not zero overtime across both weeks.
Ignoring that some states (California, Alaska) require overtime after 8 hours per day in addition to the weekly threshold, which can increase overtime pay beyond the federal 40-hour-per-week calculation.

Key terms

What is overtime pay?: Overtime pay is compensation at a premium rate (typically 1.5x the regular rate) for hours worked beyond 40 in a workweek, as required by the federal FLSA for non-exempt employees.
Who qualifies for overtime under the FLSA?: Non-exempt hourly workers and salaried employees earning below the FLSA salary threshold are entitled to overtime. Many salaried professional and managerial employees are classified as exempt.
What is double time?: Some states (notably California) and union contracts require double-time pay (2x the regular rate) for very long days or weekend work. Adjust the overtime multiplier to 2.0 in those cases.
Is overtime pay consistent year-round?: Overtime hours often vary week to week. This calculator assumes a consistent number of overtime hours per week throughout the year; actual earnings may differ.

Frequently asked questions

What is the standard overtime multiplier in the US?: Under the federal FLSA, non-exempt employees earn at least 1.5x their regular rate for all hours over 40 in a workweek. Some employers offer double-time (2x) for holidays or extreme hours, but there is no federal requirement for double-time.
Does overtime pay affect my annual salary estimate significantly?: Yes, especially for consistent overtime workers. Ten overtime hours per week at $20/hour adds $10 x 0.5 x 10 x 52 = $2,600 per year in premium pay on top of what a straight 50-hour calculation would suggest. Always separate regular and overtime hours in projections.
Are bonuses included in the regular rate for overtime purposes?: Non-discretionary bonuses (production bonuses, attendance bonuses, shift differentials) must be included in the regular rate before computing overtime. Purely discretionary bonuses are excluded. Including non-discretionary bonuses raises the regular rate and therefore the overtime premium.