Example result based on the prefilled values.
Overtime Pay
£225.00
Effective Rate
£22.50/hr
Continue your plan
Useful next calculations
Rates & sources
UK tax rates and thresholds, as published by HMRC. Scotland and Wales have devolved rates for income tax and property transactions.
Source: HMRC — Tax rates — check the linked guidance and any live quote before acting.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
- When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
- When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.
A realistic UK planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Hourly Rate (£)
5%
Overtime Hours
40 hours
Overtime Multiplier (e.g. 1.5)
1.5
After entering these figures, review overtime pay and effective rate together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Overtime Pay
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Effective Rate
The effective rate lets you compare options on a true like-for-like basis rather than being misled by different compounding periods or fee structures. Use it to cut through headline marketing rates when shortlisting providers or products.
Method & assumptionsAuthoritative sources
This calculator estimates gross overtime pay by multiplying your hourly rate by overtime hours and the premium multiplier you enter. For example, a 1.5 multiplier represents time-and-a-half and a 2 multiplier represents double time.
It does not calculate net pay, tax, payroll deductions or legal entitlement to overtime. Check your contract or applicable employment rules for the correct multiplier, then use a maintained local payroll calculator if you need an after-tax estimate.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions, or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
- !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.
What to do next
- Check the same scenario with related pay or deduction calculators to see the full picture.
- Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
- Read the related guides below if you are choosing between multiple income or deduction options.
- If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
- Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.
Frequently asked
Use arrow keys to navigate items, Enter or Space to expand/collapse.