The Premium Value of Each Overtime Hour
Overtime premium value by hourly rate and annual impact at 5 hrs/week
| Hourly Rate | Regular Hour Value | Overtime Hour Value | Premium per OT Hour | Annual Bonus (5 OT hrs/wk, 50 wks) |
|---|---|---|---|---|
| $15/hr | $15.00 | $22.50 | +$7.50 | +$1,875/yr |
| $20/hr | $20.00 | $30.00 | +$10.00 | +$2,500/yr |
| $25/hr | $25.00 | $37.50 | +$12.50 | +$3,125/yr |
| $30/hr | $30.00 | $45.00 | +$15.00 | +$3,750/yr |
| $40/hr | $40.00 | $60.00 | +$20.00 | +$5,000/yr |
| $50/hr | $50.00 | $75.00 | +$25.00 | +$6,250/yr |
Regular vs. Overtime Annual Income Comparison
Annual income by hourly rate and weekly overtime hours (52 weeks)
| Hourly Rate | 40 hrs/wk Annual | +5 OT hrs Annual | +10 OT hrs Annual | +15 OT hrs Annual |
|---|---|---|---|---|
| $20/hr | $41,600 | $46,800 (+$5,200) | $52,000 (+$10,400) | $57,200 (+$15,600) |
| $25/hr | $52,000 | $58,500 (+$6,500) | $65,000 (+$13,000) | $71,500 (+$19,500) |
| $30/hr | $62,400 | $70,200 (+$7,800) | $78,000 (+$15,600) | $85,800 (+$23,400) |
| $35/hr | $72,800 | $81,900 (+$9,100) | $91,000 (+$18,200) | $100,100 (+$27,300) |
An electrician at $45/hr working 10 overtime hours per week: $45 × 40 × 52 = $93,600 base. Plus: $67.50 × 10 × 52 = $35,100 overtime. Total: $128,700/year. The $35,100 in overtime income represents 27% of total earnings from only 20% more hours. The overtime premium makes those extra hours proportionally more valuable.
The Effective Hourly Rate When Working Overtime
Your effective hourly rate increases when you consistently work overtime. A worker at $25/hr working 50 hours/week earns: (40 × $25) + (10 × $37.50) = $1,000 + $375 = $1,375 per week ÷ 50 hours = $27.50 effective hourly rate. Working 50 hours at $25/hr base effectively pays $27.50/hr on your total hours worked — a 10% blended rate improvement.
Calculate Your Total Weekly Pay with Overtime
Enter your hourly rate and total hours worked to see the exact split between regular and overtime pay.