Using our overtime pay income calculator is simple. Just follow these steps:
1. Enter Your Hourly Rate
Start by entering how much you earn per hour. For example, if your job pays $20/hour, enter 20. If you’re a salaried worker (and not exempt from overtime pay) you can calculate your hourly rate by dividing your annual salary by the number of hours you work in a year.
2. Enter Your Regular Weekly Hours
Input the number of hours you normally work per week. If you’re a full-time employee, that number could be anywhere from 30 to 40 hours a week.
3. Enter the Number of Weeks You Work per Year
Many employees work 52 weeks per year, but if you have unpaid vacation or seasonal employment, you may work fewer weeks.
4. Enter Your Overtime Hours and Overtime Rate
Specify how many overtime hours you typically work in a week and what your overtime rate is (usually 1.5 times your hourly rate).
5. Review Your Results
The calculator will generate three key figures:
• Weekly income: Your regular pay plus overtime pay for one week.
• Overtime income: The amount earned specifically from overtime work.
• Annual income: Your total yearly earnings based on the inputs.
This process helps you quickly see how overtime affects your paycheck on both a weekly and yearly scale.
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Benefits of Using an Overtime Pay Income Calculator
There are several advantages to using an income calculator:
• Understanding your compensation: You’ll know exactly how much overtime is worth to you. You’ll see how much money you’re making each week during your regular hours, as well as how much additional income any overtime work is generating.
• Smarter budgeting: Having accurate figures makes it easier to set up a budget or use an online budget planner. A realistic budget can help you make the most of your income and reach your goals, whether that’s paying down debt, going on a dream vacation, or being able to retire one day.
• Make better work-life balance decisions: Once you see exactly how much extra income overtime brings, you can weigh whether the added hours are worth the tradeoff in personal time.
• Gain negotiation power: Understanding your earnings puts you in a stronger position when discussing pay rates, raises, or overtime opportunities with your employer.
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How to Use Overtime Pay Income Calculator Data to Your Advantage
An overtime pay calculator can provide valuable insights into what you’re actually earning. Here are a few ways to make the most of the results:
• Plan for taxes: Starting with the 2025 tax year, workers below certain income thresholds are able to deduct up to $12,500 in qualified overtime compensation ($25,000 on a joint return) from their federal income taxes. The deduction phases out for those earning $150,000 or more.
• Tweak your spending: If you regularly work overtime, you may want to include the extra income in your monthly spending budget. If your overtime hours vary, however, it may be wiser to base your budget on your regular pay and treat the additional earnings as a bonus.
What Is (and Is Not) Considered Overtime Income?
Overtime income is the additional compensation that you earn for working more than 40 hours in a week, unless your job falls under an exemption.
Though some employers will offer workers “premium” or “incentive” pay for working holidays and weekends, this is not technically overtime pay. Employers are not required to pay overtime on weekends or holidays unless working on those days causes you to exceed 40 hours for the work week.
Other types of pay that is not considered overtime income:
• Bonuses, tips, or commissions
• Reimbursements for work expenses
• Paid time off (PTO), vacation pay, or sick leave
Types of Income
Your total compensation is usually made up of more than one type of income. The main categories include:
• Regular income: This is the base pay you earn for your standard hours. Regular income is predictable and forms the foundation of your budget.
• Overtime income: This refers to additional pay for extra hours worked beyond 40 hours a week.
• Bonus income: A bonus is extra compensation awarded by your employer. Examples include holiday bonuses, performance incentives, or signing bonuses.
• Commission income: Common in sales roles, this income depends on your performance or the amount of business you generate.
• Passive income: This includes money earned outside of your job that requires little to no active daily involvement once established. It includes investments, rental properties, or side businesses.
Examples of Overtime Pay Income Calculations
Let’s say you work 40 hours per week at the New York City minimum wage, which is $16.50. Your job offers you two weeks of unpaid vacation, so your paid weeks per year come to 50.
However, you also work an additional five hours each week of overtime, which is paid at the time-and-a-half rate of your regular pay, or $24.75.
According to our calculator, your annual income would come out to $45,375, broken down into $784 of weekly regular pay income and $124 of weekly overtime pay.
Or let’s say you’re a seasonal worker who earns $15 an hour and works 40 hours a week for 35 weeks each year. During those weeks, you also put in heavy overtime — 10 hours per week — at an overtime pay rate of $22.50.
Using our calculator, your annual income would come out to $28,000, broken down into $700 of weekly regular pay income and $100 of weekly overtime pay.
Income Tips
If you earn a mix of regular and overtime pay, here are some ways to make the most of your income:
• Track your hours carefully: Always confirm your paycheck reflects your actual overtime worked.
• Use overtime as a wealth booster: Rather than count on overtime as part of your regular income, consider assigning it a specific purpose such as: paying down high-interest debt, building an emergency fund, contributing to retirement accounts, or saving for a major purchase (e.g., a car, home) to minimize future debt.
• Consider alternatives: If you rely heavily on overtime, you may want to negotiate a raise or explore side income opportunities for stability.
The Takeaway
An overtime pay income calculator makes it easy to see how extra hours affect your bottom line. By entering just a few numbers, you can quickly get a handle on your weekly income, weekly overtime pay, and annual income with overtime included.
Once you have these numbers in hand, you can use them to budget more effectively, create a healthy work-life balance, and plan for the future.
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FAQ
What information do I need to use an income calculator?
To use an income calculator, you typically need your hourly rate, the number of hours you work each week, and the number of weeks you work per year. If you work overtime, you’ll also want to enter your overtime hours and overtime rate. Some calculators may ask for additional details, like bonuses or commissions. Having these numbers ready ensures you’ll get an accurate estimate of your weekly, monthly, or annual earnings.
What is the difference between gross income and net (take-home) income?
Gross income is the total amount you earn before any taxes or deductions. It includes your base pay, overtime, bonuses, and other compensation. Net income, often called “take-home pay,” is the amount you actually receive after taxes, benefits, and other payroll deductions are subtracted. While gross income gives you a full picture of your earning power, net income is the figure you should use when budgeting, since it represents the money available for daily expenses and savings.
Can a calculator help me estimate my income after taxes and deductions?
Yes, some income calculators can estimate your income after taxes and deductions. An online paycheck calculator can help you figure out your take-home pay by factoring in gross pay, tax filing status, tax rates, and deductions (such as retirement contributions or health insurance premiums). However, you’ll need to provide detailed information on how much will be taken out of each paycheck for health insurance and other benefits. It’s generally easier to wait to see your first pay stub.
Does the calculator account for state and local income taxes?
No, our overtime pay income calculator focuses on gross income and does not factor in taxes. If you want to estimate income after taxes, you’ll need to use a paycheck calculator that includes federal, state, and local tax rates. Using your most recent pay stub is another reliable way to estimate your annual take-home pay.
Can I use an income calculator to figure out my hourly wage from my annual salary?
Yes, there are income calculators that can convert your annual salary into an hourly wage. A salary-to-hourly calculator will typically use the standard assumption of 40 hours per week for a full-time employee, which equals 2,080 working hours in a year (40 hours/week x 52 weeks/year). Alternatively, you can divide your yearly salary by the number of hours you work in a year to come up with your hourly wage.
Is the estimated net income from the calculator the exact amount I will receive on my paycheck?
No, our overtime income calculator does not tell you exactly what you’ll see in your paycheck. While it can accurately estimate your gross earnings (including overtime pay), it doesn’t account for the impact of taxes, benefits, or other deductions, which vary by individual circumstances and company policies.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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