What You Need to Know

💡Why This Calculator Matters

Overtime can significantly boost your income, but understanding the math helps you decide if the extra hours are worth the sacrifice.

👤Who Needs This

Hourly employees offered overtime, people budgeting with variable hours, or anyone deciding whether extra work is worth it.

🎯Key Insight

Time-and-a-half means your effective tax rate goes up. An extra $15/hour at 1.5x is $22.50/hour, but after taxes you might only keep $15.

⚠️Common Mistake

Not accounting for tax bracket creep. Heavy overtime can push you into a higher bracket, meaning you keep less of each additional dollar.

Pro Tip

Calculate your after-tax overtime rate. If overtime pushes you into a much higher bracket, the extra hours might not be as valuable as they seem.

📊Real-World Example

Scenario: $20/hour base rate, offered 10 hours overtime weekly

Overtime rate: $30/hour. 10 hours = $300/week extra gross

After 22% federal + 7.65% FICA taxes, you keep about $211. That's $21/hour effective - still worth it for most.