Free Tool · 1 free use per week
Calculate OT spend, annualized cost, and hire-equivalent FTE to determine when hiring beats overtime.
Last verified: March 2026
Standard: 1.5x (time-and-a-half)
How long will OT be required?
Hire-Equivalent FTE (3 = hire threshold)6.0 FTE — Hire Now
OKConsider HiringHire Now
Industry Context
Standard OT Rate1.5x
Hire Threshold3 FTE
Avg FTE Cost/Year$45K
Annual Horizon52wk
FORMULA
Weekly = 20 agents x 8h x $22 x 1.5x = $5,280
Period = $5,280 x 8 weeks = $42,240
Annualized = $5,280 x 52 = $274,560
Hire equiv = $274,560 / ($22 x 2,080h) = 6 FTE
Period = $5,280 x 8 weeks = $42,240
Annualized = $5,280 x 52 = $274,560
Hire equiv = $274,560 / ($22 x 2,080h) = 6 FTE
Key:OT spend equivalent to 6 full-time hires. If sustained beyond 6 weeks, hiring is more cost-effective. At $22/hr, each FTE costs ~$45,760/yr — compare that to $274,560 annualized OT.
Overtime is a short-term fix that becomes expensive fast. This calculator computes your weekly and total OT spend, then annualizes it and converts to hire-equivalent FTE. When the hire-equivalent exceeds 3, you're almost certainly better off recruiting — unless the volume spike is truly temporary.