Regular rate of pay calculator

Include a nondiscretionary bonus or other pay in the regular rate, and see the correct overtime for the week.

Regular rate of pay calculatorHourly rate ($): 18Hours worked this week: 46Other includable pay…: 92📊
In shortRegular rate = (hourly pay for all hours + other includable pay) ÷ total hours. Overtime premium = 0.5 × regular rate × overtime hours. 46 hours at $18 plus a $92 bonus gives a $20.00 regular rate and $980 total pay.

Fill in your numbers

e.g. nondiscretionary bonus, differential

Enter your numbers and press Calculate.

The formula

Straight-time pay = hourly rate × all hours + includable pay.

Regular rate = straight-time pay ÷ all hours.

Overtime premium = 0.5 × regular rate × hours over 40.

A worked example

A warehouse worker earns $18 an hour, works 46 hours and receives a $92 weekly production bonus. Straight-time pay is $920, the regular rate is $20.00, and the overtime premium is $60 for 6 hours. Total pay is $980, not the $974 paid if the bonus is left out of the overtime math.

Who uses this calculator

Under federal rules, overtime is based on the regular rate, which includes most pay such as shift differentials and nondiscretionary bonuses, not only the hourly wage. Leaving them out is a common payroll error.

Some payments, such as discretionary bonuses and certain reimbursements, are excluded. Check what applies to each payment.

Another regular rate of pay example

A night shift packer earns $16 an hour, works 52 hours and earns $120 in shift differential for the week. Straight-time pay is $16 x 52 + $120 = $952.00, and the regular rate is $18.31. The overtime premium for 12 hours is half the regular rate times 12, $109.85, so total pay is $1,061.85.

Reading the result

Straight-time pay already covers every hour, overtime hours included, at base pay plus extra pay, which is why only a half-time premium is added on top. The result is misleading if the extra pay covers more than one week, or if you include amounts that are excluded, such as true gifts or expense reimbursements. States with daily overtime need their own calculation on top of this weekly one.

What trips people up

Adjusting the regular rate of pay for your team

Plants with production bonusesRun the calculation weekly when the bonus is paid weekly, so overtime is right on the same paycheck.
Healthcare with differentialsAdd night and weekend differentials earned that week to includable pay before dividing.
Quick winPay periodic bonuses as close to the weeks they cover as you can. The shorter the gap, the simpler the overtime true-up.

Common questions

What is included in the regular rate?

Most pay for work, including nondiscretionary bonuses and differentials.

What is excluded?

Some payments such as discretionary bonuses and certain reimbursements.

Why 0.5 and not 1.5?

Straight time is already paid for all hours; overtime adds the half.

What if the bonus covers several weeks?

It is allocated back to those weeks.

Is a night shift differential part of the regular rate?

Yes, shift differentials are generally included. Add the week’s total differential pay to other includable pay, and the calculator spreads it across all hours worked.

Does holiday or vacation pay for days not worked go into the regular rate?

No. Pay for hours not worked, such as a paid holiday off, vacation or sick pay, is generally excluded. Leave it out of other includable pay and leave those hours out of hours worked.

Keep going

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Related guides and tools

Skip the manual totals

Instead of adding up timesheets before you open the regular rate of pay calculator, let EZTime total employee hours. Book a demo to see it with your team.

General information and an estimate only. It is not legal, payroll, tax or financial advice. Rules vary by state and city. Check important results with a qualified professional.