Labour & prime cost
Overtime Cost Calculator
Is it cheaper to keep paying overtime or to add a shift?
Overtime feels cheaper than hiring because you do not see a new name on the schedule. Enter the hours you are actually paying at premium and compare.
Your numbers
Pre-filled with a worked example so you can see how it behaves. Type over any field with your own figures. Nothing you enter is sent anywhere.
The answer
How this is calculated
Overtime cost = overtime hours × hourly rate × multiplier × (1 + payroll burden %)
Regular-rate equivalent = overtime hours × hourly rate × (1 + payroll burden %)
Overtime premium = overtime cost − regular-rate equivalent
What this does not tell you
- Federal law requires time and a half above 40 hours in a workweek. Several states add daily overtime thresholds or double time. Check your state.
- This is not employment-law advice. Overtime exemptions and tip-credit interactions are fact specific.
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