Overtime Cost Calculator
An overtime cost calculator shows what overtime is costing your business. Enter the number of employees, overtime hours per week, hourly rate and overtime multiplier to see weekly, monthly and annual overtime cost.
e.g. 1.5× for time-and-a-half, 2× for double time.
At a glance
How the overtime cost calculator works
- 1 Enter how many employees regularly work overtime.
- 2 Add the average overtime hours each works per week.
- 3 Set the hourly rate and the overtime multiplier (e.g. 1.5× for time-and-a-half).
- 4 The calculator scales it to weekly, monthly and annual cost.
Overtime rate = Hourly rate × Multiplier. Weekly cost = Employees × OT hours × OT rate. Annual cost = Weekly cost × Weeks.
Frequently asked questions
How do you calculate overtime cost?
Multiply the hourly rate by the overtime multiplier (commonly 1.5×) to get the overtime rate. Then multiply by overtime hours and the number of employees for weekly cost, and by weeks worked for the annual figure.
What is the overtime multiplier?
It is the premium paid for overtime hours. Time-and-a-half (1.5×) is the most common; some jurisdictions or shifts require double time (2×). Set it to match your policy or local labour law.
Is overtime cheaper than hiring?
For short-term spikes, overtime is often cheaper than recruiting and onboarding. But sustained high overtime is expensive and risks burnout and errors — at some point an extra hire is cheaper. Compare the annual overtime cost here against a new salary.
How can scheduling software reduce overtime?
Attendance and scheduling tools surface overtime before it happens, balance shifts across the team and flag policy breaches — so unplanned, avoidable overtime drops.