Safety & Workforce worked example

Overtime Cost Calculator at 58% overtime premium capture factor: a worked example

Suppose overtime premium capture factor falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate overtime cost from overtime hours, premium rate, and fixed burden.

The inputs for this scenario

  • Overtime hours worked: 100 units (held at the documented default)
  • Overtime pay rate per hour: 45 $ / unit (held at the documented default)
  • Overtime premium capture factor: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed overtime adder (callout or shift premium): 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Weighted cost = quantity × rate × capture factor + fixed adjustment.
  • Total overtime cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Overtime cost per unit works out to 28.6 $ / piece at these inputs.
  • Variable overtime cost works out to 2,610 $ at these inputs.
  • Fixed overtime cost adder works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where overtime premium capture factor sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • It multiplies overtime hours by pay rate and a capture factor to get variable cost, then adds a fixed adder for total overtime cost and cost per hour. 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

  • Total overtime cost: 2,860 $ (headline result)
  • Overtime cost per unit: 28.6 $ / piece
  • Variable overtime cost: 2,610 $
  • Fixed overtime cost adder: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Overtime Cost Calculator calculator, set overtime premium capture factor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.