Worked example
An eight-hour overtime shift may actually consume ten hours once travel and preparation are included, and childcare or travel can materially reduce the money retained.
Frequently asked questions
Why enter take-home overtime pay?
Overtime tax treatment varies by earnings and circumstances. Use the amount you reasonably expect to receive after deductions.
What if I have no extra costs?
Enter zero. The tool will then mainly show the effect of unpaid time on your effective hourly value.
Measure what an overtime shift really returns
Overtime is easiest to assess using the amount you expect to receive after deductions for the specific shift. Then subtract costs that only arise because you worked it, such as an extra journey, childcare or food. The tool also includes unpaid travel and preparation so you can see the return for the full block of time committed.
This is particularly useful when overtime premiums sound attractive but the shift creates several hours of additional travel or care costs. A shift can still add cash to your household while producing a much lower effective hourly return than the advertised overtime rate.
Before accepting regular overtime, consider
- whether the premium applies to all hours worked;
- how overtime affects pensionable pay or bonuses;
- rest requirements and fatigue around your normal shifts;
- whether transport or childcare costs rise at evenings or weekends.
The effective hourly figure divides what you retain by paid and additional unpaid time. It is designed to make repeated overtime decisions more comparable.