Costing worked example

Overtime Cost with regular loaded rate of 19 $ / hr: a worked example

Suppose regular loaded rate falls to 19 $ / hr. This page works the full calculation at that level so you can see exactly which result moves and by how much. Calculate overtime premium, total labor cost, and unit cost impact for extra production hours.

The inputs for this scenario

  • Regular loaded rate: 19 $ / hr (the input this scenario stresses; the baseline uses 38)
  • Overtime multiplier: 1.5 × (held at the documented default)
  • Overtime hours: 6 hr (held at the documented default)
  • Operators: 8 people (held at the documented default)
  • Overtime output: 720 units (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Overtime labor = rate × multiplier × hours × operators.
  • Overtime unit cost works out to 1.9 $ / unit at these inputs, and this is the headline figure for the scenario.
  • Overtime labor works out to 1,368 $ at these inputs.
  • Premium cost works out to 456 $ at these inputs.
  • Regular equivalent works out to 912 $ at these inputs.

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 50% below the baseline at 1.9 $ / 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. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Overtime unit cost: 1.9 $ / unit (headline result)
  • Overtime labor: 1,368 $
  • Premium cost: 456 $
  • Regular equivalent: 912 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Overtime Cost calculator, set regular loaded rate to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.