How do you calculate overtime from a salary?

Divide the annual salary by 52 weeks, then divide by the number of hours the salary is meant to cover (typically 40). This gives the hourly rate. Multiply by 1.5 for the overtime rate. Example: $52,000/year ÷ 52 ÷ 40 = $25/hr. OT rate = $37.50/hr.

Salary to Overtime Calculator 2026

Convert your annual salary to an hourly rate, then calculate your overtime rate and projected pay with OT.

A $52,000.00/year salary equals $25.00/hr. Your overtime rate is $37.50/hr. With 5 OT hrs/week, weekly pay is $1,187.50.

Annual Salary ($)

Base Hours/Week (salary covers)

OT Hours/Week (beyond base)

Regular Pay

$1,000.00

Overtime Pay (1.5×)

$187.50

Gross Total
$1,187.50

Total Hours

45.0

OT Hours

5.0

Salary to Overtime Conversion

Weekly Salary $$52,000.00 ÷ 52 weeks = $1,000.00 $1,000.00/week

Hourly Rate $1,000.00 ÷ 40 hrs = $25.00 $25.00/hr

Overtime Rate (1.5×) $25.00 × 1.5 = $37.50 $37.50/hr

Weekly OT Pay 5 hrs × $37.50 = $187.50 $187.50

Total Weekly Pay $1,000.00 + $187.50 $1,187.50

Projected Annual (with OT) $1,187.50 × 52 weeks $61,750.00

Source: U.S. Department of Labor — Overtime

How to Calculate Overtime from a Salary

If you're a salaried non-exempt employee, your employer must still pay you overtime. The first step is converting your salary to an hourly rate:

Step 1 Hourly Rate = Annual Salary ÷ 52 ÷ Base Hours/Week $/hr

Step 2 OT Rate = Hourly Rate × 1.5 Time-and-a-half

Source: U.S. DOL — Overtime

Are You Exempt or Non-Exempt?

Not all salaried employees qualify for overtime. To be exempt, you must meet both requirements:

Salary test: Earn at least $58,656/year ($1,128/week) as of 2025
Duties test: Perform executive, administrative, professional, computer, or outside sales duties as defined by the FLSA

If you fail either test, you are non-exempt and entitled to overtime regardless of being paid a salary. Check with the DOL for the latest salary threshold.

Frequently Asked Questions

My salary is meant to cover 50 hours/week. How is OT calculated?

If your salary is intended to cover 50 hours, divide by 50 (not 40) to get the regular rate. However, this is a complex area. The DOL's "fluctuating workweek" method and fixed-salary-for-fixed-hours method have different rules. Consult the DOL or a labor attorney.

Does my bonus count toward the overtime rate?

Non-discretionary bonuses (production, performance, attendance) must be included in the regular rate calculation. Add the weekly bonus to your weekly salary, divide by total hours, and calculate OT on that adjusted rate. Use the main overtime calculator to include bonuses.