Use this gross pay calculator to estimate earnings before taxes and deductions, including regular pay, overtime, and double-time pay. Enter hours and an hourly rate for one pay period to calculate the total.
Gross pay is not take-home pay. It is also different from an employer’s total labor cost, which may include employer payroll taxes, insurance, and benefits beyond wages.
How to use the gross pay calculator
- Standard Hours: Enter your regular hours in “Hours” and your base hourly wage in “Hourly Rate.” Exclude hours you will enter in either overtime section.
- Standard Overtime Hours: Enter the hours paid at your first overtime rate. Set “Rate Multiplier” to the applicable factor, such as 1.5 for time-and-a-half.
- Double Overtime Hours: Enter hours paid at a second overtime rate. The default multiplier is 2 for double time, but you can change it to the applicable factor.
- Review the results: “Basic Salary” is regular-hours pay, and “Total Salary” is the combined gross pay for all three hour categories.
Both rate multipliers are factors, not dollar amounts—even if a dollar symbol appears beside the double-overtime multiplier. At a $20 base rate, enter 1.5 to calculate $30 per overtime hour, not 30.
Use the same pay period for every hours entry, count each hour only once, and enter 0 in unused overtime categories. The calculator does not automatically identify overtime hours or determine eligibility. Apply the relevant employment terms and legal rules before entering your hours; a pay-period total alone may not establish how much overtime is due.
How to calculate gross pay
For hourly work without overtime, the gross pay formula is:
Gross pay = Regular hours × Hourly rate
For example, 170 regular hours at $20 per hour produces $3,400 in gross pay.
With both overtime categories, the calculator uses:
Gross pay = (Regular hours × Hourly rate) + (Overtime hours × Hourly rate × Overtime multiplier) + (Double-overtime hours × Hourly rate × Double-overtime multiplier)
The overtime multipliers represent the full pay rate for those hours. A multiplier of 1.5 pays 150% of the base rate; it does not add another 150% on top of regular pay.
Worked example: gross pay with overtime
Suppose an employee earns $20 per hour and has the following separately classified hours in one pay period:
| Pay category | Hours | Calculation | Pay |
|---|---|---|---|
| Regular hours | 170 | 170 × $20 | $3,400 |
| Overtime at 1.5× | 40 | 40 × $20 × 1.5 | $1,200 |
| Double time at 2× | 5 | 5 × $20 × 2 | $200 |
| Total | 215 | $3,400 + $1,200 + $200 | $4,800 |
Without the five double-time hours, gross pay would be $4,600. These rates illustrate the calculation, not a determination of which overtime rules apply to an employee.
Understanding your results
- Basic Salary: Regular hours multiplied by the base hourly rate. Despite the label, this is calculated hourly pay, not a fixed salaried employee’s contractual salary.
- Total Overtime Pay: This displayed field includes only the “Standard Overtime Hours” calculation. It does not include double-overtime pay.
- Total Salary: Regular pay plus standard overtime pay plus double-overtime pay, before taxes and deductions.
In the example, the displayed “Total Overtime Pay” is $1,200, but earnings from both overtime categories total $1,400. The $200 double-time amount is included in “Total Salary.”
The calculator has no separate inputs for bonuses, commissions, tips, or other compensation. Those amounts may affect actual gross wages and, in some cases, the rate used to calculate overtime. Likewise, take-home pay requires a separate calculation for applicable taxes and deductions.
Using gross pay estimates in practice
Employees can use the result to check expected earnings against a pay statement or compare job offers using consistent hours. For household budgeting, use take-home pay rather than treating the gross amount as available spending money.
Employers can estimate wages for a proposed schedule, test the effect of a pay increase, or review payroll inputs. Start with accurate records of the number of hours worked, but remember that employee-paid hours and client-billable hours are not necessarily the same.
Should you pay overtime or hire more staff?
Compare the cost of covering the same workload under each option. At a $20 base rate, 20 hours at time-and-a-half cost $600 in gross wages, versus $400 for 20 hours at the base rate. That $200 difference alone does not establish whether hiring is worthwhile.
Before deciding whether to pay employees for overtime or add staff, consider recruiting, training, benefits, workload duration, availability, and fatigue. Short demand spikes and ongoing staffing shortages call for different decisions.
Automation may be another option, but compare its purchase, maintenance, and operating costs with realistically avoidable labor costs. This Forbes discussion of automation savings provides background, not a savings forecast for your business.
Related payroll and staffing calculators
- Salary to Hourly Calculator: Convert wages between time periods to compare compensation on a consistent basis.
- Billing Rate Calculator: Estimate what to charge clients rather than confusing an employee’s wage with a sustainable customer billing rate.
- Absence Rate Calculator: Measure absenteeism when reviewing staffing coverage and recurring overtime needs.
Build a calculator for your workforce
A staffing agency could offer a wage estimator with its own shift categories and rate rules. Use Calcopolis to build a customized calculator or form so visitors can estimate earnings or submit their staffing requirements.