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Overtime pay calculator: how to work out your hourly rate, the multiplier and what extra hours are worth

Overtime is paid at a higher rate than normal hours, but the final amount depends on how your hourly rate is worked out. This guide shows the formula, how the choice of monthly hours changes the result, and what common multipliers mean.

By the Toolcloak team9 October 20263 min read
In this article
  1. The formula, step by step
  2. What the multiplier means
  3. The hidden choice: how many hours is a month?
  4. How hours add up
  5. Is overtime worth it?
  6. Checking your payslip

Overtime is work beyond your normal hours, and most rules pay it at a higher rate than ordinary time. The calculation has two parts: your normal hourly rate, and a multiplier such as 1.5 or 2. The first part is the one people argue about, because it depends on how many hours a month your salary is meant to cover.

The formula, step by step

Example: ₹30,000 a month, 10 hours of overtime at 1.5×
  1. 1Work out the normal hourly rate₹30,000 ÷ 176 hours = **₹170.45**.
  2. 2Apply the multiplier₹170.45 × 1.5 = **₹255.68** per overtime hour.
  3. 3Multiply by the overtime hours₹255.68 × 10 = **₹2,556.82**.
  4. 4Add to the salary₹30,000 + ₹2,556.82 = **₹32,556.82** for the month.

If you are paid by the hour, enter the hourly rate and set the monthly salary to 0. The tool then skips the first step.

Enter your monthly salary (or hourly rate), working hours, overtime hours and the multiplier.Open Overtime Pay Calculator

What the multiplier means

MultiplierOvertime hourly ratePay for 10 hoursTotal with ₹30,000 salary
1.25×₹213.07₹2,130.68₹32,130.68
1.5×₹255.68₹2,556.82₹32,556.82
2×₹340.91₹3,409.09₹33,409.09
2.5×₹426.14₹4,261.36₹34,261.36

A multiplier of 1 would pay the normal rate. Many arrangements use 1.25, 1.5 or 2, and some use different multipliers for weekdays, weekends and holidays.

Pay for 10 overtime hours by multiplier (₹)
1.25×
₹2,131
1.5×
₹2,557
2×
₹3,409
2.5×
₹4,261

Going from time-and-a-half (1.5×) to double time (2×) adds about 33% to the overtime pay for the same hours.

The hidden choice: how many hours is a month?

A salary of 30,000 a month does not tell you the hourly rate until you decide how many hours it pays for. The tool's default is 176, which is 22 working days of 8 hours. A company that counts 26 days (208 hours) or a standard 30-day month (240 hours) gets a lower hourly rate from the same salary.

Hours counted in the monthNormal hourly rate10 overtime hours at 1.5×
160 hours₹187.50₹2,812.50
176 hours₹170.45₹2,556.82
208 hours₹144.23₹2,163.46
240 hours₹125.00₹1,875.00

Same salary, same 10 hours. The pay ranges from about ₹1,875 to about ₹2,813 depending only on the divisor.

How hours add up

Overtime hoursOvertime pay (1.5×)Total with salary
5₹1,278.41₹31,278.41
10₹2,556.82₹32,556.82
20₹5,113.64₹35,113.64
40₹10,227.27₹40,227.27

Pay grows in a straight line with hours, at about ₹256 per extra hour for this salary.

The example month in four numbers
₹170.45Normal hourly rate₹30,000 ÷ 176
₹255.68Overtime hourly rateAt 1.5×
₹2,556.82Overtime pay10 hours
₹32,556.82Total with salaryBefore tax and deductions

Overtime is part of your income, so tax and provident-fund rules may apply to it. The tool shows pay before any deductions.

Is overtime worth it?

Extra pay is welcome, but rest has a cost too. Compare the overtime rate with what an hour of your own time is worth, and keep an eye on how many extra hours you are doing. If overtime becomes routine, a discussion about your normal hours or a revised salary may serve you better.

Checking your payslip

  1. Write down the hours you worked in overtime each day or week.
  2. Find your normal hourly rate from your contract or the way your company counts hours.
  3. Use the right multiplier for the day: weekday, weekend or holiday.
  4. Calculate the pay with the calculator.
  5. Compare it with the payslip and ask payroll to explain any difference.

Questions people ask

How do I calculate overtime pay?

Divide your monthly salary by the working hours in the month to get the hourly rate, multiply by the overtime multiplier, then multiply by the overtime hours. For 30,000 a month, 176 hours, 10 overtime hours at 1.5 times, the pay is about 2,557.

What is time and a half?

It means paying 1.5 times the normal hourly rate for overtime hours. At a normal rate of 200 an hour, time and a half is 300 an hour.

What is double time?

Double time is a multiplier of 2, so overtime hours are paid at twice the normal rate. It is often used for holidays, rest days or very long hours.

How many working hours are in a month?

It depends on how your employer counts. 22 days of 8 hours gives 176 hours, 26 days gives 208 and a 30-day month of 8 hours a day gives 240. A bigger number gives a smaller hourly rate.

Can I use the calculator if I am paid by the hour?

Yes. Set the monthly salary to 0 and enter your hourly rate. The tool then uses the hourly rate directly.

Does the result include tax?

No. The Overtime Pay Calculator shows gross pay. Tax and other deductions depend on your income, your country and your employer's payroll.