Calculate regular rate of pay, overtime premium, and estimated gross pay from hourly or salary wages, bonuses, commissions, and hours.

Enter straight-time rates for all hours, including overtime hours. Blank additional rows and payments count as zero.

U.S. federal estimate for nonexempt employees. State rules, exemptions and payment classifications can change the amount owed. Average period allocations may not match the required workweek allocation.

Additional rates, payments and overtime settings

Regular Rate of Pay Formula

RRP = TPE / HW

Variables:

  • RRP is the Regular Rate of Pay ($/hr)
  • TPE is includable straight-time remuneration for the workweek, excluding legally excludable payments and overtime premiums
  • HW is the hours worked (hrs)

For hourly pay or a qualifying salary covering all hours, divide includable workweek remuneration by actual hours worked. For a salary covering fixed non-overtime hours, divide salary by its agreed hours and add allocated bonuses or commissions divided by actual hours. Average period allocations in this calculator are estimates; actual bonus allocations and overtime obligations depend on applicable law.

How to Calculate the Regular Rate of Pay?

The following steps outline how to calculate the Regular Rate of Pay.

  1. First, determine the total pay for employment. 
  2. Next, determine the hours actually worked (hrs). 
  3. Next, gather the formula from above = RRP = TPE / HW.
  4. Finally, calculate the Regular Rate of Pay.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

total pay for employment = 1000

hours actually worked (hrs) = 20

Frequently Asked Questions

What is the Regular Rate of Pay?

The regular rate generally includes hourly earnings plus includable bonuses and commissions, with legally excludable payments and overtime premiums excluded. A fixed-hours salary uses its agreed hours for the salary component. The result is expressed in dollars per hour ($/hr).

Why is calculating the Regular Rate of Pay important?

The regular rate is used to calculate overtime. This estimate does not establish legal compliance; exemptions, state rules, lawful salary arrangements and correct allocation of payments must be checked separately.

Can the Regular Rate of Pay include bonuses or commissions?

Yes, the Regular Rate of Pay can include non-discretionary bonuses, commissions, and other forms of compensation that are part of the total pay for employment, affecting the calculation.

How does overtime pay affect the Regular Rate of Pay?

Overtime pay is typically calculated based on the Regular Rate of Pay. In many jurisdictions, employees are entitled to a higher rate (e.g., 1.5 times the Regular Rate of Pay) for hours worked beyond the standard workweek.