Calculator: pay overtime or employ new staff

To use an interactive version of this calculator, please enable Javascript.

If you'd like to perform the transaction manually, follow the steps below.

Note: hours per week is assumed to be 38.

Use this calculator to estimate the cost of overtime to your business and whether an extra staff member is a suitable alternative.

[Overtime Rate] = [Average Hourly Rate] multiplied by [Overtime Multiplier].
[Overtime Multiplier] = [Overtime Rate] divided by [Average Hourly Rate].
[Cost of Overtime] = [Overtime Rate] multiplied by [Number of Staff] multiplied by [Average Weekly Hours of Overtime].
[Cost of an Extra Staff Member] = [Average Hourly Rate] multiplied by [Hours per Week].

Overtime calculator form

Number of staff The average over the past year. Required

Hourly rate If there's a wide range, find the average. Required

Overtime rate If there's a wide range, find the average. Required

Overtime multiplier For example, double time (multiplier = 2) or time-and-a-half (multiplier = 2.5). Required

Weekly overtime per employee See how overtime affects your bottom line. Required

$0 cost of overtime to your business,
versus $0 cost of an extra staff member (per week)

Difference between cost of overtime
and hiring a new staff member

Overtime is a necessary part of the ebb and flow of business life, but it can have an adverse effect on employee job satisfaction, quality control and your bottom-line.

When making a decision between overtime and employing new staff, use this figure to help make an informed decision.

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State Government of Victoria

Page updated: 10 Jan 2019

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