Overtime cost calculator
Use this calculator to estimate the cost of overtime in your business.
Want to reduce overtime costs?
OT calculator FAQs
Disclaimer: This calculator is a free tool designed to help you estimate potential overtime expenses. Results are for guidance only and do not account for taxes, benefits, or compliance obligations. Always verify your calculations with a payroll specialist or accountant before making business decisions.
What does this overtime cost calculator do?
It shows your weekly, monthly, and annual overtime costs based on your wage rates and average overtime worked. It also estimates savings if you reduce overtime hours.
What is the default overtime multiplier?
1.5x, which is standard for most hourly employees in the U.S. You can change this if your policy or union agreement requires a higher rate.
Why should I track overtime costs?
High overtime costs can drain your budget, contribute to employee burnout, and trigger compliance issues. Understanding the impact helps you optimize schedules.
Does this calculator include taxes or benefits?
No. This is a wage-only estimate. Actual costs may be higher once you factor in employer taxes and benefit contributions.
What industries typically have high overtime expenses?
Construction, healthcare, manufacturing, and hospitality often rely heavily on overtime to cover staffing gaps.