Overtime & Differential Pay Calculator

Overtime and shift differentials can add a lot to a nurse's or technologist's pay, but they're easy to miscount. Overtime is based on your regular rate, which includes differentials, and since 2025 part of your overtime can be deducted from federal taxes. This calculator puts it all together.

What this calculator does

Enter your base hourly rate, regular hours per week, overtime hours, shift differential and the hours it applies to, weeks worked per year and your filing status. It shows:

• your estimated yearly pay,
• your weekly pay,
• your average pay per hour worked,
• your overtime premium per year (the extra half), and
• an estimate of the federal tax saved by the overtime deduction.

The formula in plain English

Straight-time pay = base rate × all hours worked + differential × differential hours.

Regular rate = straight-time pay ÷ all hours worked. This is your average hourly rate, including differentials.

Overtime premium = 0.5 × regular rate × overtime hours. Your overtime hours are already paid once at straight time; the premium is the extra half.

Weekly pay = straight-time pay + overtime premium.

Overtime deduction = the yearly premium, up to $12,500 ($25,000 joint), reduced by $100 for each $1,000 of income above $150,000 ($300,000 joint).

Tax saved ≈ deduction × your federal marginal tax rate.

A worked example

Taylor is an ICU nurse earning $46 an hour, scheduled for 36 hours a week. She picks up about 6 overtime hours a week, works 24 hours a week on nights with a $5 differential, and works 48 weeks a year.

• Straight-time pay: $46 × 42 hours + $5 × 24 hours = $2,052.
• Regular rate: $2,052 ÷ 42 = about $48.86.
• Overtime premium: 0.5 × $48.86 × 6 = about $146.57.
• Weekly pay: about $2,199. Yearly: about $105,500.
• Overtime premium for the year: about $7,035.
• At her 22% bracket, the deduction saves about $1,550 in federal income tax.

Taylor's average pay is about $52.35 for every hour worked, well above her $46 base.

Why it matters at each career stage

If you're: Employed

Check your pay stubs against this. Overtime that's calculated on base pay alone, without differentials, is a common payroll error. If you work a lot of overtime, keep records of the hours so you can confirm the overtime reported on your W-2.

If you're: Resident / fellow

Residents are usually salaried and not paid overtime. If you're a resident thinking about moonlighting, use the moonlighting income calculator instead.

Is extra overtime worth it?

Overtime pays well, but it has costs: fatigue, less time for family and rest, and a higher chance of burnout. A few ideas:

Set a target. Decide what the extra money is for, like an emergency fund or paying off a card, and stop picking up shifts when you reach it.

Look at the after-tax number. The overtime deduction helps, but Social Security, Medicare and state taxes still apply.

Don't build your budget on overtime. Base your regular spending on your scheduled hours. Treat overtime as extra.

Watch your hours. Back-to-back shifts can affect safety and well-being. Many hospitals limit consecutive hours for a reason.

Overtime and your taxes

The overtime deduction is available from 2025 through 2028 unless Congress extends it. It's an "above the line" style deduction you can take whether or not you itemize, but it only reduces federal income tax. Your employer must report qualified overtime separately, so check your W-2 at year-end. If you work for more than one employer, each one reports its own overtime.

Next, convert your schedule with the hourly to salary calculator, see your full take-home pay, or compare a travel nursing package. Shift workers may also like our emergency fund guide.