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Free tool

Overtime cost
calculator.

Calculate how much overtime is costing your business — weekly, monthly, and annually. See how attendance tracking helps identify patterns and reduce unnecessary overtime.

Your overtime details

3 hrs
1.5x

Your estimated overtime costs

Total annual overtime cost
Weekly overtime cost
Monthly overtime cost
Cost per employee per year
Methodology

How we calculate costs

Our calculator breaks down overtime costs into three key considerations.

Overtime cost

Calculated as hours worked beyond the standard schedule × overtime rate multiplier × hourly rate × number of employees × 52 weeks per year.

Hidden costs

Beyond direct pay, overtime leads to fatigue, errors, and reduced productivity. Research shows sustained overtime reduces per-hour output by 15–20%.

Compliance risk

UK Working Time Regulations cap average weekly hours at 48. Nepal Labour Act caps overtime at 24 hours/week. Untracked overtime can lead to compliance penalties.

Frequently asked questions

Calculator questions, clearly answered

Common questions about the overtime cost calculator and how the estimates are derived.

Talk to our team
01

How is overtime cost calculated?

The calculator multiplies your average hourly rate by the number of overtime hours per employee, then applies the overtime rate multiplier, multiplies by total employees, and scales to 52 weeks for the annual figure.

02

What is a typical overtime rate?

It varies by country. In the UK, overtime is often paid at 1.0–1.5× the normal rate. In Australia, Modern Awards typically mandate 1.5–2.5× depending on the day and hours. In Nepal, the Labour Act 2074 requires 1.5× for overtime. In the US, the FLSA mandates at least 1.5× for hours over 40 per week.

03

How does attendance tracking help with overtime?

Attendance tracking automatically detects when employees exceed their expected daily hours, enforces weekly overtime caps, and generates trend reports so managers can identify patterns and redistribute workload before overtime costs spiral.

04

What are the legal overtime limits?

In the UK, Working Time Regulations cap the average working week at 48 hours. In Nepal, the Labour Act caps overtime at 24 hours per week. In Australia, limits vary by Modern Award and enterprise agreement. Untracked overtime can expose businesses to compliance penalties.

05

Does Leave Balance track overtime?

Yes — overtime tracking is included free with every Leave Balance plan. You get configurable daily and weekly caps, customisable rate multipliers, and an analytics dashboard to monitor trends across your team.

Take control of overtime costs

Leave Balance tracks overtime automatically with configurable caps and rate multipliers — included free at $10/month flat for unlimited employees.