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.