Overtime vs Second Job Calculator
Should you work overtime or take a second job? Compare weekly take-home pay after tax, work costs and unpaid travel time, the take-home per hour of your time and the hourly pay a second job must offer.
How it works
overtime take-home = extra hours × base pay × multiplier × (1 − tax) · second-job take-home = extra hours × job pay × (1 − tax) − weekly costs · per hour of your time = take-home ÷ (hours + unpaid travel) · pay needed to match = (overtime take-home + costs) ÷ (hours × (1 − tax))
Overtime is usually paid at a premium — at least 1.5 times the regular rate for hours over 40 a week under the US Fair Labor Standards Act, with similar rules in many countries — and costs nothing extra to get to. A second job pays its own rate but adds commute time and costs, and may push your combined income into a higher tax bracket. Comparing take-home pay per hour of your time, including unpaid travel, shows which use of your evenings or weekends is really worth more.
Worked example
Working 10 extra hours at $20 an hour with a 1.5× overtime multiplier earns $300 gross, $210.00 take-home after 30% tax ($21.00 per hour). A second job at $18 an hour earns $180 gross, $126 after tax, minus $30 of weekly costs leaves $96.00 for 12 hours of your time ($8.00 per hour). Overtime wins: the weekly difference in take-home pay is $114.00, or $5,928.00 a year. The second job would need to pay $34.29 an hour to match.
Sources: US Department of Labor — Overtime pay (FLSA) · GOV.UK — Tax codes
Frequently asked questions
Is overtime better than a second job?
Often, because overtime pays a premium (1.5× or more) with no extra commute. A second job wins when its hourly rate is much higher or overtime is not available or not paid at a premium.
Is overtime taxed more?
Overtime is taxed as ordinary income at your marginal rate. It can look heavily taxed on a payslip because withholding treats the bigger paycheck as if it were your normal pay, but the final tax is the same.
Does a second job increase my tax rate?
Its income stacks on top of your main salary, so it is taxed at your marginal rate — possibly a higher bracket. Some countries also apply emergency or secondary withholding codes to second jobs.
Should I count travel time?
Yes. Unpaid commuting to a second job is time you are not paid for, so dividing take-home by total time shows the real hourly value.
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Planning estimate only — not legal, tax or payroll advice. Employment contracts, labour law and tax rules differ by country and employer; check your contract, your payslip or a qualified adviser.