Result
Department overtime cost
—
Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.
This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Overtime cost = number of employees × overtime hours per employee × average rate × pay multiplier. This is an aggregate figure for a department or company, not a single employee.
The average multiplier is a simplification — the real rate rises by hour tier (early hours are cheaper, later ones more expensive), so 1.5–2 is a reasonable ballpark, not an exact figure. Use the overtime pay calculator for one employee's exact tiered rate.
Consistently high overtime cost usually signals understaffing — compare the result with the salary of an additional employee for those same hours, which often turns out cheaper annualized.