Overtime Cost Calculator for Employers
Model the fully loaded cost of overtime across your team — wages, employer payroll taxes, the avoidable half-time premium, and how that compares with adding a scheduled hire.
Your overtime inputs
Cost breakdown
Enter your team's overtime pattern, then click "Calculate overtime cost".
How employer overtime cost works
Every overtime hour costs the regular rate plus a half-time premium, and employer payroll taxes apply to the whole amount. Benefits, by contrast, are mostly fixed per employee, so a team working moderate overtime is often cheaper than a larger headcount doing the same work at straight time.
The break-even point arrives when recurring overtime approaches a full weekly schedule. Above that line, you are paying premium rates for coverage a scheduled employee could provide at base rate. Employees checking their own pay should use the overtime pay calculator or the time and a half calculator.
Employer overtime cost FAQs
Budgeting, payroll taxes, and the overtime-versus-hiring decision.
Employer tools and guides
Estimates for budgeting only. Actual cost depends on your state unemployment rate, benefit plan design, and applicable state overtime rules. Confirm compliance decisions with a qualified payroll professional.
Calculate Overtime by State
Select your state for accurate 2026 overtime calculations