Overtime and Shift Differentials: Estimating Real Income
If you regularly work overtime or nights/weekends with differentials, your annual gross will be higher than a simple 40×52 estimate. Consider averaging your typical weekly hours across a year and include OT multipliers (e.g., time‑and‑a‑half).
Example: 5 hours of OT at 1.5× on a $20 rate adds $150/week, or roughly $7,800/year before taxes.
💡 Try it yourself with our Hourly → Salary Converter.
OT Math You Can Reuse
Weekly OT boost = OT Hours × Hourly Rate × (OT Multiplier − 1). Add this to your base weekly pay, then annualize. If you have variable OT, average the last 3–6 months.
Shift Differentials
Night/weekend differentials add a percentage or flat amount per hour. Track how often you receive differentials and include them in your estimate so your annual projection isn’t understated.
Health & Burnout Considerations
OT can raise income, but sustained 55‑ to 60‑hour weeks can hurt productivity and health. Many workers choose a mix: a base of 40 hours with periodic short bursts of OT.