How to Calculate Overtime Hours

Overtime hours are any hours worked beyond the standard threshold set by an employer or labor law, typically 8 hours per day or 40 hours per week. To calculate overtime: subtract the standard threshold from total hours worked. The remaining hours are overtime, which are usually paid at 1.5× or 2× the regular rate.

Key Takeaways
  • Overtime = total hours worked minus the standard threshold (commonly 8 hrs/day or 40 hrs/week)
  • Always subtract unpaid breaks before calculating total hours worked
  • Convert to decimal hours before multiplying by an overtime pay rate (e.g., 2.5 hrs × $30/hr = $75)
  • Use a time duration calculator to get exact hours. It handles overnight shifts and outputs decimal hours automatically

The Basic Formula

Overtime hours = Total hours worked − Standard hours threshold

For example, if the standard workday is 8 hours and an employee worked 10.5 hours, the overtime is 2.5 hours. For weekly overtime with a 40-hour threshold, someone who worked 46 hours has 6 overtime hours.

Step-by-Step: Daily Overtime

1

Find the start and end time

Use your timesheet or clock records to get the exact start and end time for the day.

2

Calculate total hours worked

Use a time duration calculator to get the exact total. Subtract any unpaid breaks.

3

Subtract the standard threshold

If the standard day is 8 hours, subtract 8 from the total. Any remainder is overtime.

4

Convert to decimal hours

Multiply by the overtime pay rate. Use decimal hours (e.g. 2.5 not 2:30) for accurate pay calculations.

Worked Examples

Daily overtime: office shift

Start: 8:00 AM / End: 6:30 PM / Break: 30 min
Total worked: 10 hrs / Standard: 8 hrs
Overtime: 2 hours

Weekly overtime: 5-day week

Mon–Fri totals: 9 + 9 + 8.5 + 9 + 8 = 43.5 hrs
Standard threshold: 40 hrs
Overtime: 3.5 hours

Overnight shift

Start: 10:00 PM / End: 7:00 AM
Total worked: 9 hrs / Standard: 8 hrs
Overtime: 1 hour

Calculating Overtime Pay

Once you have the overtime hours, multiply by the overtime rate:

  • Regular pay rate

    The hourly rate for standard hours worked.

  • Overtime rate (1.5x)

    The most common rate. Multiply the regular rate by 1.5 to get the overtime hourly rate.

  • Double time (2x)

    Used for holidays or excessive hours in some agreements. Multiply the regular rate by 2.

Example: Regular rate $20/hr × 1.5 = $30/hr overtime rate. 3 overtime hours × $30 = $90 overtime pay.

Common Mistakes

  • Not subtracting breaks

    Unpaid breaks should not count toward worked hours. Always subtract them before calculating overtime.

  • Using the wrong threshold

    Some agreements use daily overtime (over 8 hrs/day), others use weekly (over 40 hrs/week). Check your contract.

  • Mixing up minutes and decimal hours

    2 hours 30 minutes is 2.5 decimal hours, not 2.30. Always convert before multiplying by a pay rate.

Use the Calculator

Use our Time Duration Calculator to get the exact hours and decimal hours for any shift. It handles overnight shifts and shows decimal hours ready for payroll with no manual conversion needed.

Related Guides

  • What Are Decimal Hours?

    Understand the decimal hour format used in overtime pay calculations, with a conversion table and common examples.

  • How to Track Billable Time

    If you bill clients rather than an employer, this guide covers logging, rounding, and invoicing your hours accurately.

Frequently Asked Questions

How do you calculate overtime hours?

Subtract the standard work hours from the total hours worked. For example, if the standard is 8 hours per day and an employee worked 10 hours, the overtime is 2 hours. Weekly overtime is usually calculated as hours worked beyond 40 in a week.

What counts as overtime?

Overtime is typically any time worked beyond the standard threshold, which is commonly 8 hours per day or 40 hours per week depending on the employment agreement and local labor laws. Always check your specific contract or jurisdiction.

How do I calculate overtime pay?

Multiply the overtime hours by the overtime rate. If regular pay is $20 per hour and the overtime rate is 1.5x, the overtime pay rate is $30 per hour. Multiply $30 by the number of overtime hours to get the overtime pay amount.

Does a lunch break count as work time?

Unpaid breaks do not count toward hours worked and should be subtracted before calculating overtime. Paid breaks may count depending on your employer's policy.