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Manufacturing Overtime vs New Hire Calculator
See when recurring overtime becomes more expensive than hiring another operator. Compare annual costs and find the weekly break-even point using your crew's pay rates and hiring costs.
About this calculator
Related note The FLSA exempt salary threshold Note reviewed
What to expect Have your weekly extra hours and hourly pay rates ready. About a minute.
Your situation
Cost assumptions
Weekly overtime break-even
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How the calculation works
Where overtime and hiring break even
The break-even point shows how many weekly overtime hours would cost the same as hiring another operator for a year, including wages, benefits, recruiting, and training.
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Finding the break-even
To find the break-even point, divide the fully loaded annual hiring cost by the overtime cost per hour and the number of operating weeks. At the example rates, $30.10 in base pay becomes $45.15 at 1.5 times pay, or about $48.60 with 7.65% employer payroll taxes. A new operator at $28 an hour with a 30% benefits load costs about $75,712 annually. The example break-even point is about 30.0 overtime hours per week.
Payroll taxes on overtime
The overtime estimate includes employer payroll taxes. The default 7.65% combines Social Security at 6.2% and Medicare at 1.45%, per IRS Publication 15. For 2026, Social Security applies up to the $184,500 wage base. The hiring estimate uses the benefits load you enter. Include relevant employer taxes and insurance costs when setting your assumptions.
Other staffing considerations
Fatigue, quality, safety, turnover, and the flexibility of another trained operator can affect the decision. Add measurable overtime-related costs in the additional overtime cost field to see how they change the comparison.
When overtime still makes sense
Overtime can work well for seasonal demand, launch periods, and unpredictable orders. Run the comparison again when extra hours become a regular part of the schedule.
Put your results to work
Calculate shift premiums for your hourly crew
Model shift premiums, overtime, and annual differentials across your hourly workforce. The toolkit also includes salary bands, wage ladders, and a merit matrix tied to your budget.
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Compare this estimate with your records to help plan your next step.