Costing worked example

Overtime Cost with regular loaded rate of 95 $ / hr: a worked example

Push regular loaded rate up to 95 $ / hr and the picture changes. This example computes every intermediate figure at that operating point. Use before approving overtime to recover schedule, add capacity, or cover demand spikes.

The inputs for this scenario

  • Regular loaded rate: 95 $ / hr (raised for this scenario; the documented default is 38)
  • Overtime multiplier: 1.5 × (unchanged)
  • Overtime hours: 6 hr (unchanged)
  • Operators: 8 people (unchanged)
  • Overtime output: 720 units (unchanged)

Working through the calculation

  • Applying the documented formula (Overtime labor = rate × multiplier × hours × operators) to the inputs above produces each figure below.
  • At this operating point the engine returns 9.5 $ / unit for overtime unit cost, the number this scenario is built around.
  • At this operating point the engine returns 6,840 $ for overtime labor.
  • At this operating point the engine returns 2,280 $ for premium cost.
  • At this operating point the engine returns 4,560 $ for regular equivalent.

How this compares with the baseline

  • Against the tool's baseline example, where regular loaded rate sits at 38 $ / hr and the headline result is 3.8 $ / unit, this scenario comes in 150% above the baseline at 9.5 $ / unit.
  • It computes total overtime labor for a crew, the premium portion above regular rate, and the resulting labor cost per unit produced during overtime. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Overtime unit cost: 9.5 $ / unit (headline result)
  • Overtime labor: 6,840 $
  • Premium cost: 2,280 $
  • Regular equivalent: 4,560 $

Run it with your numbers

  • Every input above is editable in the live Overtime Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.