Overtime Pay Calculator

Overtime can be a welcome boost to your pay, but it's not always clear how much you'll earn or how much you'll actually keep once tax and National Insurance come off. A payslip with lots of overtime can also look as if it's been taxed more heavily than usual, which confuses many people.

Our Overtime Pay Calculator works out your overtime rate, your weekly, monthly and yearly overtime pay, and how much of it reaches your bank account. This guide explains the common overtime rates, how overtime is taxed and your legal rights.

Common overtime rates

Overtime is usually paid as a multiple of your normal hourly rate:

Time and a half is the most common for extra hours on weekdays. Double time is often paid for Sundays, bank holidays or night shifts, but it depends entirely on your contract.

Is there a legal right to overtime pay?

No. UK law doesn't require employers to pay extra for overtime, or to pay for it at all, as long as your average pay for all the hours you work doesn't fall below the National Minimum Wage. Your contract or staff handbook should say:

• Whether overtime is paid, and at what rate.
• Whether overtime is compulsory, guaranteed or voluntary.
• Whether you get time off in lieu instead of pay.

If you're salaried and work unpaid overtime, divide your pay by all the hours you actually work to check you're still above the minimum. For workers aged 21 and over, the National Living Wage is £12.71 an hour from April 2026. Our minimum wage checker does this for you.

Limits on working hours

Most workers can't be made to work more than an average of 48 hours a week, usually averaged over 17 weeks. You can choose to opt out of this limit in writing, but you can't be forced to, and you can cancel the opt-out with notice.

How overtime is taxed

Overtime is taxed in exactly the same way as the rest of your pay. There's no special overtime tax. What matters is which tax band your extra earnings fall into:

These figures are for England, Wales and Northern Ireland. Scotland has different income tax bands. Pension contributions and student loan repayments will reduce the amount you keep further.

Why overtime months look heavily taxed

PAYE works out tax for each pay period as if you earned the same amount all year. In a month with lots of overtime, part of your pay can look as if it's in a higher band, so more tax is taken. If your earnings drop again the following month, the system usually balances itself out, and any overpayment for the year is refunded.

How to use the calculator (Overtime Pay Calculator)

1. Enter your normal hourly rate.
2. Enter your contracted hours a week.
3. Enter the overtime hours you work in a typical week.
4. Choose your overtime rate, such as time and a half.
5. Choose where you live so the right income tax bands are used.

The calculator shows your overtime hourly rate, your overtime pay per week, month and year, and the extra take-home pay after income tax and National Insurance.

A worked example

Jo earns £15 an hour for a 37.5-hour week and regularly works 5 hours of overtime at time and a half.

• Overtime rate: £15 × 1.5 = £22.50 an hour
• Overtime a week: 5 × £22.50 = £112.50
• Overtime a month on average: £112.50 × 52 ÷ 12 = £487.50
• Overtime a year: £112.50 × 52 = £5,850
• Basic pay a year: £15 × 37.5 × 52 = £29,250

Jo's total pay of £35,100 stays within the basic rate band, so each overtime pound loses 20% income tax and 8% National Insurance. Jo keeps 72%, which is £4,212 a year, or about £16.20 for every overtime hour.

Try your own hours and rates in the Overtime Pay Calculator.

Overtime and holiday pay

Regular overtime can count towards your holiday pay. For at least the first four weeks of your statutory holiday, holiday pay should reflect your normal pay, including overtime you work regularly. If you often work overtime and your holiday pay only covers basic hours, ask your employer or HR team how it's worked out.

You can check your holiday allowance with our holiday entitlement calculator.

Is overtime worth it?

It depends on your tax band and what you give up. At the basic rate, you keep 72p of each extra pound. If overtime pushes your income over £50,270, you keep only 58p of each pound above that point. Between £100,000 and £125,140, the loss of your personal allowance means you keep just 38p.

Paying some of your overtime into your pension can help in the higher bands, because pension contributions get tax relief at your top rate. Our pension contributions calculator shows how this works.