Overtime vs New Hire Planner
Weigh the cost of covering a recurring overload with overtime against the fully loaded cost of adding a person. Enter the extra hours per week and the pay rates, set the benefits load and the one-time cost to hire, and the workbook shows the cost each way per year, the break-even in weekly overtime hours, and where a steady overload starts to favor a hire.
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Built by expert HR practitioners and leaders
- Overtime against a new hire, per year: enter the extra hours and the pay rates, set the benefits load and the multiplier, and see the cost each way side by side
- The break-even in weekly overtime hours: the point where the two annual costs meet, so you can read it against the hours you are covering right now
- A three-year view: the one-time cost to hire lands in the first year only, so a steady overload that looks close at first usually favors a hire by year three
- Several overloads weighed at once: a Scenarios tab lists situations side by side, flags the cheaper option for each, and totals the yearly saving
- Open, editable formulas in Excel or Google Sheets, with a worked example pre-filled and sourced benchmarks; set your assumptions once and reuse the file each time the question comes up
The workbook does the comparison from the numbers you enter. Your wage rates, your real cost to hire, whether the overload is recurring, and the decision itself are yours to set.
Planning estimates and general business information, not legal or tax advice. The result depends on the wage rates, the load, and the cost to hire you enter, so use your own figures and confirm overtime eligibility before you build a plan around the number.
Not the right fit? Take the 60-second match.
Last reviewed June 2026
One Excel workbook that weighs overtime against an added hire
A working model, not a blank grid. You enter the hours and the pay rates, the workbook costs both routes and finds the break-even, and it opens on a worked example so the comparison is clear before you change anything.
Overtime vs New Hire Planner
Enter the recurring extra hours per week, the current base rate and overtime multiplier, the new hire base rate and benefits load, and the one-time cost to hire and ramp. The workbook returns the overtime cost per year, the new hire loaded cost, the cheaper option, the break-even in weekly overtime hours, and a three-year view, and opens on a worked example so the logic is clear before you change the inputs.
Several scenarios, a summary, and the math in plain English
A Scenarios tab weighs several overloads at once and flags the cheaper option for each. A one-page summary carries the recommendation and the three-year saving into a budget conversation. A Benchmark tab holds sourced overtime, benefits, and cost-per-hire figures, and the Notes tab documents how each number is calculated.
Three steps from the overload to the cheaper route
You enter the hours and the pay rates, set the load and the cost to hire, and the workbook shows which route costs less and where it tips.
Enter the overload
Set the recurring extra hours per week, the current base rate, and the overtime multiplier, so the overtime side reflects the premium you pay on those hours.
Set the hire
Enter the new hire base rate, the benefits and burden load, and the one-time cost to hire and ramp, so the hire carries its fully loaded cost.
Read the break-even
The workbook shows the cost each way per year, the break-even in weekly overtime hours, and the three-year view, so the call is a number, not a hunch.
A variable cost against a fixed one, costed the way it works
Overtime is a premium you pay only for the hours; a hire is a fixed cost you carry whether the overload is there or not. The right answer turns on the hours and the pay gap, so the workbook costs both and shows where they cross.
Who this planner fits and where to go if that is not you
It is built for a recurring overload, the steady extra hours that keep coming back. For the size of the team or how a shift pattern is covered, the right tool is next to it.
Built for
- An operations or HR leader deciding whether to keep paying overtime or add a person to a team carrying steady overload.
- A plant, warehouse, or shift manager weighing overtime against a hire before the next budget cycle.
- A finance or HR partner who wants the cost each way and the break-even on one page before the headcount conversation.
If you are looking for
- The number of people a recurring workload needs, not the overtime-versus-hire cost. The FTE Headcount Planner converts a workload into the headcount it requires.
- How many people a shift pattern needs to cover the hours, not the cost comparison. The Shift Staffing Planner sizes coverage across shifts.
Before you buy
What format is it and can I edit it?
There is a free version of this calculator. Why pay for this one?
How accurate is the result?
What about overtime eligibility?
What is the refund policy?
What happens after I buy?
Can I expense this purchase to my business?
Most customers buy TrueStep HR tools for business use, and a tool you use for work often qualifies as a deductible business expense. Whether it does for you depends on your situation, so confirm with your accountant or tax professional. Your receipt arrives by email at checkout and works as documentation.
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Put a number on overtime versus a new hire
The cost each way per year, the break-even in weekly overtime hours, and a three-year view, in a file you keep.
Planning estimates and general business information, not legal or tax advice. Last reviewed June 2026.