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Overtime Cost Calculator

Calculate overtime cost, overtime pay, overtime premium, loaded overtime cost, payroll burden, overtime cost per employee, overtime as a percentage of payroll, and annual overtime budget. Use this HR calculator to estimate the true cost of overtime before payroll is processed.

Calculate Overtime Cost

Calculation Mode

Reporting Period

Employees Working Overtime

Average Hourly Rate

Regular Hours Per Employee

Overtime Hours Per Employee

Overtime Multiplier

Double-Time Hours Per Employee

Double-Time Multiplier

Shift Differential Per OT Hour

Bonus / Incentive Pay Per Employee

Payroll Tax Rate (%)

Benefits / Burden Rate (%)

Workers Comp / Insurance (%)

Admin Overhead Rate (%)

Meal / Travel Cost Per Employee

Total Payroll for Period

Target OT % of Payroll

Periods Per Year

Currency Symbol

Main Result

Display Mode

Overtime Cost = Overtime Hours × Hourly Rate × Overtime Multiplier.

Your result will appear here.

Overtime Cost Guide

Common overtime cost pieces:

Base Overtime Pay

OT hours × hourly rate × multiplier

Premium Cost

Extra cost above straight-time pay

Loaded OT Cost

OT pay plus taxes, benefits, and overhead

Annual OT Budget

Period OT cost × periods per year

Quick notes

Overtime cost is usually higher than wages because it can include taxes, benefits, insurance, and overhead.
Overtime premium is the extra amount paid above straight-time wages.
Loaded overtime cost is useful for staffing and labor budget planning.
High overtime can signal understaffing, scheduling gaps, turnover, or demand spikes.

How the overtime cost calculator works

Overtime pay:
The calculator multiplies overtime hours by the hourly rate and overtime multiplier.

Double-time pay:
Double-time hours are calculated separately using the double-time multiplier.

Overtime premium:
The calculator estimates the extra cost above straight-time pay.

Loaded overtime cost:
The calculator adds payroll taxes, benefits, workers compensation, overhead, and meal or travel costs.

Why use an overtime cost calculator?

An overtime cost calculator helps HR teams, payroll teams, operations managers, and business owners estimate the true cost of overtime before payroll runs.

It can help compare overtime hours, overtime pay, double-time pay, overtime premium, loaded overtime cost, overtime percentage of payroll, cost per employee, and annual overtime budget.

What your overtime cost result means

Your result shows total overtime cost, overtime pay, double-time pay, overtime premium cost, shift differential cost, payroll burden, loaded overtime cost, overtime cost per employee, overtime as a percentage of payroll, target variance, and annual overtime cost. These figures are estimates based on the values you enter.

Overtime cost formulas

Overtime Pay: Employees × Overtime Hours × Hourly Rate × Overtime Multiplier
Double-Time Pay: Employees × Double-Time Hours × Hourly Rate × Double-Time Multiplier
Straight-Time Equivalent: Employees × Overtime Hours × Hourly Rate
Overtime Premium Cost: Overtime Pay - Straight-Time Equivalent
Shift Differential Cost: Employees × Overtime Hours × Shift Differential
Payroll Burden: Overtime Pay × Burden Rates
Loaded Overtime Cost: Overtime Pay + Double-Time Pay + Shift Differential + Payroll Burden + Extra Costs
Overtime % of Payroll: Loaded Overtime Cost ÷ Total Payroll × 100
Annual Overtime Cost: Loaded Overtime Cost × Periods Per Year

Overtime cost planning tips

Compare overtime cost against the cost of adding headcount or part-time coverage.
Track overtime by department, shift, manager, role, and location.
Separate scheduled overtime from unplanned overtime to find staffing issues.
Watch overtime as a percentage of payroll to identify budget pressure.
Use loaded overtime cost when deciding whether overtime is cheaper than hiring.

Frequently asked questions

How do you calculate overtime cost?

Multiply overtime hours by hourly rate and the overtime multiplier. Then add any taxes, benefits, insurance, overhead, shift differential, and other overtime-related costs.

What is overtime premium cost?

Overtime premium cost is the extra cost paid above straight-time wages. For time-and-a-half, the premium portion is usually 0.5 times the hourly rate for each overtime hour.

What is loaded overtime cost?

Loaded overtime cost includes overtime wages plus employer-paid payroll taxes, benefits, workers compensation, insurance, overhead, and other related costs.

How do you calculate overtime as a percentage of payroll?

Divide loaded overtime cost by total payroll for the period, then multiply by 100.

Is this overtime cost calculator exact?

No. It provides a planning estimate. Actual overtime cost can vary by overtime laws, pay policies, employee classification, location, union rules, taxes, benefits, and payroll setup.