Overtime and Its Impact on Salary

Regular overtime can meaningfully change your annual income—and your schedule.

Compare base vs OT‑inclusive annuals with /finance/hourly-to-salary-calculator.

Key considerations

• Overtime rate (e.g., 1.5×, 2×)
• Hours per week and sustainability
• Tax bracket effects (marginal vs. effective rate)

Example

Base: $20/hr × 40 × 50 = $40,000

With 5 hrs/week OT at 1.5×: add $7,500 → ≈ $47,500

Trade-offs

• Higher income vs. fatigue/burnout
• Variable hours reduce predictability
• Potential lifestyle and family impacts

FAQs

Does overtime always raise my take-home?

Gross income rises. Take-home depends on taxes and withholdings, but generally increases too.

Should I rely on OT for budgeting?

Treat OT as variable. Build your budget on base pay and use OT for savings/debt.