Free Overtime Rate Calculator
Calculate the overtime rate and total overtime costs to understand how much premium pay your workforce generates beyond standard hours.
Overtime Rate
1.48%
Overtime Rate vs Total Overtime Hours
How to Calculate Overtime Rate
Formula
Overtime Rate = (Overtime Hours / Total Hours Worked) x 100 Overtime Cost = Overtime Hours x Hourly Rate x Multiplier
Tracking overtime reveals whether you are understaffed or inefficiently scheduling. The overtime premium (the extra cost above base pay) directly eats into margins. Some overtime is expected during peak seasons, but persistent high overtime often signals the need for additional hires, which can be cheaper than sustained premium pay.
Example Calculation
A team works 8,120 total hours including 120 overtime hours. Average hourly rate is $25 with 1.5x overtime pay.
- 01Overtime Rate = (120 / 8,120) x 100 = 1.48%
- 02Overtime Cost = 120 x $25 x 1.5 = $4,500
- 03Overtime Premium = 120 x $25 x 0.5 = $1,500
Frequently Asked Questions
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