Loona Automation

Shift Differential Calculator — Your Real Rate, Premium Included

A $2 night premium does not just add $2 — it raises the rate your overtime is paid on. See your blended regular rate and the gross it produces.

In short: enter your week's hours, mark which hours earn the differential premium, and get the blended regular rate (total straight-time earnings ÷ total hours), straight-time earnings, the overtime premium at half the blended rate, and gross pay.
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Shift Differential Calculator — Blended Rate Done the Legal Way

Enter each day's total hours, and how many of those hours earn the differential (nights, evenings, weekends — however your workplace defines it).

DayTotal hoursOf which: differential hours
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Friday
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Sunday

How It Works — The Rule Behind This Calculator

A shift differential is extra pay per hour for nights, evenings or weekends. The rule most workers (and some payroll setups) miss: under the FLSA, overtime must be paid at 1.5× the regular rate, and the regular rate includes differentials. The legal method is:

Worked example: 40 hours at $20 with 16 night hours at +$2, plus 5 overtime day hours. Straight-time = 45×$20 + 16×$2 = $932; blended rate = $932 ÷ 45 = $20.71; overtime premium = 5 × $10.36 = $51.78; gross = $983.78. Paying overtime on the bare $20 base instead would short the week by about $3.55 — small per week, real money per year.

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Frequently Asked Questions

What is a shift differential?

Extra pay per hour for working less desirable shifts — nights, evenings, weekends or holidays. It is usually a flat amount (for example +$2/hour) or a percentage of the base rate. This calculator uses the flat-amount form; for a percentage, convert it to dollars first (10% of $20 = $2).

Must overtime be paid on the differential too?

Yes. Federal law defines the 'regular rate' to include shift differentials and most other premiums, so overtime is 1.5× the blended rate, not 1.5× the base rate alone.

My stub shows overtime at 1.5× my base rate only. Is that wrong?

If you also earned a differential in that week, very likely yes — the overtime premium should be based on the blended rate. Raise it with payroll with your week's hours and differential hours listed; this page's breakdown is a good printout to bring.

Do differentials count in weeks with no overtime?

They still add their per-hour premium to straight-time earnings (that part is in every week). They only change the overtime maths in weeks past 40 hours.

Disclaimer: Estimates only — not payroll or legal advice. Your employer's payroll rules and state law control your actual pay. Figures are rounded for display; your pay stub and payroll department are the official record.

How it works — the formula

When part of a week is paid at a higher rate, overtime is not priced off the base rate alone. This calculator adds up the week’s straight-time earnings — every hour at the base rate, plus the premium on the hours you mark as differential hours — and divides by the total hours to get the blended regular rate. Overtime then adds the missing half (0.5×) of that blended rate for each hour over 40.

The formula:
Straight-time earnings = (total hours × base rate) + (differential hours × premium per hour)
Blended regular rate = straight-time earnings ÷ total hours
Overtime premium = hours over 40 × blended rate × 0.5
Gross pay = straight-time earnings + overtime premium

Worked example

Your base rate is $22/hour with a $3/hour night premium. Monday to Friday you work 8 hours a day, 6 of them at the premium, and you add a 4-hour day shift on Saturday. The week totals 44 hours, 30 of them differential hours. Straight-time earnings: 44 × $22 + 30 × $3 = $968 + $90 = $1,058.00. Blended regular rate: $1,058 ÷ 44 = $24.05. Overtime premium: 4 hours × $24.05 × 0.5 = $48.09. Gross pay: $1,106.09 — exactly what the calculator shows for these inputs.

Frequently asked questions

Why isn’t my overtime simply 1.5 × ($22 + $3) = $37.50 an hour?

Because the premium attaches to only some of the week’s hours. The regular rate used for overtime is the week’s weighted average — total straight-time earnings divided by total hours — which in the example is $24.05, not $25.00. Applying $37.50 to every overtime hour would pay the night premium on hours that never earned it; applying 1.5× to the $22 base alone would underpay it.

My premium is a percentage of my base rate, not a flat amount. How do I enter it?

Convert it to dollars per hour first. A 10% premium on a $22 base rate is $2.20 per differential hour — enter 2.20 in the premium box, and the calculator treats it exactly like any other flat premium.

I work two different base rates in the same week. Can this page handle that?

This calculator accepts one base rate plus one premium. The blended-rate idea is the same with two base rates — total straight-time earnings divided by total hours — but you would have to total the earnings from both rates yourself before the overtime half can be priced. As a rough check, a single blended figure entered here gets you close.

Does the order of my shifts matter — nights early in the week, days later?

No. The blend is built from the week’s totals: total hours, total differential hours, total straight-time earnings. Which specific hours crossed the 40-hour line does not change the blended rate or the overtime premium in this calculation.

Is the differential premium taxed differently from my regular pay?

No — the differential and the overtime premium are ordinary wages, and the figure this page shows is gross pay before any taxes or withholdings. What is actually withheld is a payroll matter governed by tax law and your W-4, not by this calculator.

Embed this calculator on your website — free

Add this calculator to your own website or blog — it is completely free, needs no sign-up, and always shows the latest version. Copy the code below and paste it into your page where you want the calculator to appear. Keeping the small “Powered by Loona Automation” credit line under the embed helps keep this tool free — but you are free to style or remove it; the tool works either way.