Pay Raise Overtime Calculator
Standard Formula
Raise Impact = (New Rate × 1.5 × Hours) - (Old Rate × 1.5 × Hours)
Every dollar increase in your base rate translates into a $1.50 per hour boost for all overtime worked.
How Pay Raise Overtime Calculator Works?
The Pay Raise Overtime Calculator works by comparing overtime pay at your current rate with overtime pay at your new rate, then projecting the yearly gain.
1Enter the current rate
Type your hourly wage before the raise, $24.00 by default.
2Enter the new rate
Type the hourly wage after the raise, $27.00 by default.
3Enter average weekly overtime
Add the overtime hours you usually work each week.
4Read the gains
A $3.00 raise lifts the overtime rate by $4.50 per hour, adds $45.00 per week on 10 overtime hours, and adds $8,580.00 per year once 40 regular hours are included.
Pay Raise Overtime Calculator Formula
The Pay Raise Overtime Calculator formula is Raise Impact = (New Rate × 1.5 × Hours) − (Old Rate × 1.5 × Hours).
Overtime rate increase
OT Rate Increase = (New Rate − Old Rate) × 1.5
Weekly overtime gain
Weekly OT Gain = OT Rate Increase × Weekly OT Hours
Annual gain
Annual Gain = [(New − Old) × 40 + Weekly OT Gain] × 52
- Old Rate
- Hourly wage before the raise.
- New Rate
- Hourly wage after the raise.
- Weekly OT Hours
- Average overtime hours per week.
Worked example: a 4% raise
Old Rate $25.00, New Rate $26.00, 6 overtime hours per week.
OT Rate Increase = $1.00 × 1.5 = $1.50. Weekly OT Gain = $9.00.
Annual Gain = ($40.00 + $9.00) × 52 = $2,548.00.
Pay Raise Overtime Calculator Conversion Table
The Pay Raise Overtime Calculator conversion table shows the overtime and annual impact of 7 raise sizes for a worker with 8 weekly overtime hours.
| Raise per Hour | OT Rate Increase | Weekly OT Gain (8 hrs) | Weekly Total Gain | Annual Gain (52 wks) |
|---|---|---|---|---|
| $0.50 | $0.75 | $6.00 | $26.00 | $1,352.00 |
| $1.00 | $1.50 | $12.00 | $52.00 | $2,704.00 |
| $1.50 | $2.25 | $18.00 | $78.00 | $4,056.00 |
| $2.00 | $3.00 | $24.00 | $104.00 | $5,408.00 |
| $2.50 | $3.75 | $30.00 | $130.00 | $6,760.00 |
| $3.00 | $4.50 | $36.00 | $156.00 | $8,112.00 |
| $5.00 | $7.50 | $60.00 | $260.00 | $13,520.00 |
What is Pay Raise Overtime Calculator?
A Pay Raise Overtime Calculator is a tool that shows how a base wage increase flows into overtime pay and annual income.
Each $1.00 raise adds $1.50 to every overtime hour. Workers with steady overtime gain more from a raise than the base figure suggests.
Annual figures assume 52 paid weeks at the same overtime level. Unpaid leave or seasonal hours reduce the real gain.
What are the uses of Pay Raise Overtime Calculator?
There are 4 main uses of the Pay Raise Overtime Calculator.
Raise negotiations
Employees show the full annual value of a requested raise.
Offer evaluation
Workers measure a promotion’s value, including overtime.
Budget forecasts
Managers estimate the overtime cost of a team-wide wage increase.
Cost-of-living adjustments
Staff convert a percentage raise into dollars per overtime hour.