Overtime pay calculator
Your hourly rate, an overtime multiplier and the hours give the gross. Because overtime sits on top of your salary, this shows the take-home at your marginal rate.
How overtime pay works
The gross is simple: your hourly rate multiplied by the overtime multiplier, multiplied by the hours. Time-and-a-half turns a £15 rate into £22.50 an hour, double-time into £30. That is the pre-tax figure.
The take-home depends on where the overtime falls in your tax bands. Because it is extra income on top of your salary, it is taxed at your marginal rate. A basic-rate earner keeps about 72p of each overtime pound after 20% tax and 8% National Insurance. A higher-rate earner keeps about 58p. This tool reads the marginal rate straight off your salary, including the 60% band between £100,000 and £125,140.
Worked example
On a £30,000 salary, 10 hours of overtime at a £15 rate and 1.5x pays £22.50 an hour, so £225.00 gross. That salary sits in the basic-rate band, so the marginal rate is about 28.0%. After tax and National Insurance you keep roughly £162.00.
Common questions
How is overtime pay calculated?
Multiply your normal hourly rate by the overtime multiplier, then by the hours worked. Time-and-a-half means 1.5 times the rate, double-time means 2 times. A £15 rate at 1.5x for 10 hours is £225 of gross overtime.
Is overtime taxed more than normal pay?
No, there is no special overtime tax. It is taxed at your marginal rate, the rate on your next pound of income. Because it sits on top of your salary, it can feel heavily taxed, but the rate is the same as any other pay in that band.
How much overtime will I take home?
On a £30,000 salary, 10 hours at £15 and 1.5x is £225.00 gross. After tax and National Insurance at your marginal 28.0% you keep about £162.00.
Does overtime affect my tax code?
Not usually. Overtime is taxed through PAYE like the rest of your pay. A large amount in one month can look over-taxed on that payslip because PAYE assumes the month is typical, but it evens out across the year.