Overtime math is simple once you split regular and overtime hours. Here is the formula, an example and the Excel version.
Updated November 2026
What time and a half means
Time and a half is overtime pay at 1.5 times a worker’s regular hourly rate. Under the federal Fair Labor Standards Act, covered non-exempt employees generally must receive at least one and a half times their regular rate for hours worked over 40 in a workweek. States can add their own rules, such as daily overtime, so check yours. The time and a half calculator does the math for you.
The formula
Worked example
An employee earns $20 an hour and works 48 hours in a week. The first 40 hours pay 40 x $20 = $800. The time and a half rate is $30. The 8 overtime hours pay 8 x $30 = $240. Gross pay is $1,040. Without the premium the same 48 hours would pay only $960, so overtime adds $80.
Excel formulas
With hours in B1 and rate in B2:
=MIN(B1,40)*B2+MAX(B1-40,0)*B2*1.5
For the example this returns 1040. To see the overtime hours alone use =MAX(B1-40,0). Our timesheet template uses similar formulas.
Regular rate can be more than base pay
The regular rate used for overtime can include non-discretionary bonuses, shift differentials and some other pay. The federal rules are in 29 CFR Part 778. If your pay includes these items, ask payroll or an employment professional how to compute the regular rate.
Time and a half vs double time
Some employers or states pay double time (2 times the rate) for certain hours, such as holidays or very long days. In the calculator change the multiplier to 2 to see the difference. At $20 an hour, double time is $40.
Common mistakes
- Applying 1.5 times to every hour instead of only overtime hours.
- Ignoring state daily overtime rules.
- Leaving out bonuses that count toward the regular rate.
- Rounding hours in a way that shortchanges employees.
For the same math with your own multiplier see the overtime calculator, and for the hours themselves read how to calculate hours worked.
These are illustrations to help you plan, not financial advice.
Frequently asked questions
What is time and a half?
Pay at 1.5 times the regular hourly rate, usually for overtime hours.
How do I calculate time and a half?
Multiply the hourly rate by 1.5. At $20 an hour it is $30.
When is overtime required?
The federal rule generally requires it for covered non-exempt employees over 40 hours in a workweek. Some states add daily rules.
What is the Excel formula for overtime pay?
=MIN(hours,40)*rate+MAX(hours-40,0)*rate*1.5