Overtime vs New Hire Planner

When overtime becomes a regular expense, it is worth comparing that cost with hiring another employee. Enter your extra hours per week, pay rates, benefits load, and one-time cost to hire. The workbook calculates the annual cost of each option, the break-even point in weekly overtime hours, and when recurring overtime starts to make hiring the less expensive choice.

One Excel workbook that weighs overtime against an added hire

The workbook opens with a worked example so you can see how the comparison works. Enter your own hours and pay rates to calculate both costs and find the break-even point.

• Overtime vs New Hire Planner. Enter your recurring extra hours per week, current base rate, overtime multiplier, new hire base rate, benefits load, and one-time cost to hire and ramp. The workbook calculates annual overtime costs, the fully loaded cost of hiring, which option costs less, and the break-even point in weekly overtime hours. It also provides a three-year view and opens with a worked example to show how the calculations work.
• Compare several workloads and bring the results into your budget discussion. The Scenarios tab identifies the cheaper option for each. A one-page summary shows the recommendation and three-year saving. The Benchmark tab contains sourced overtime, benefits, and cost-per-hire figures, while the Notes tab explains how each number is calculated.

Three steps to compare overtime costs with an added hire

Enter your hours, pay rates, benefits load, and cost to hire. The workbook shows which option costs less and the point where that changes.

• Calculate your overtime cost. Enter the recurring extra hours per week, current base rate, and overtime multiplier to account for the premium paid on those hours.
• Add the cost of hiring. Enter the new hire base rate, benefits and burden load, and one-time cost to hire and ramp. The workbook calculates the fully loaded cost.
• Explore another scenario. Duplicate the file to compare a second workload or pay rate. Turn on the soft-cost uplift to see how fatigue and error costs affect the result.

What drives the difference in cost?

Overtime costs rise with the extra hours worked. Hiring adds a fixed cost, even when the workload changes. The workbook compares both using your hours and pay rates and shows where the costs cross.

• See the break-even in weekly hours. The workbook shows when hiring becomes less expensive, so you can compare that point with the overtime hours your team currently works.
• See how the costs change over three years. The one-time cost to hire applies only in the first year, so the three-year view shows why a recurring overload usually favors hiring by year three.
• Account for fatigue, errors, and turnover. A separate overtime soft-cost uplift lets you include those costs in the comparison or leave them out.

Who this planner helps and related tools

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

• For the number of people needed to handle a recurring workload, the FTE Headcount Planner converts that workload into a headcount requirement.
• For staffing across shift patterns, the Shift Staffing Planner calculates how many people are needed to cover the hours.

Before you buy

What format is it and can I edit it?

It is one Excel workbook that also works in Google Sheets. The download is five files: the workbook, a Start Here, the one-page Quick Reference, the product license, and a short guide to using it in Google Sheets. Every input and formula is editable. Duplicate the file to weigh a second overload side by side.

What does the workbook add to a quick estimate?

The workbook compares overtime with a fully loaded hire, calculates the break-even in weekly overtime hours, and provides a three-year view. The Scenarios tab lets you compare several workloads at once, with sourced benchmarks to check your inputs. Set your assumptions once and reuse the file whenever the question comes up. Every formula is visible. A quick browser estimate handles one comparison; this workbook handles several.

How accurate is the result?

Use your actual payroll figures, benefits load, and cost to hire for the most useful estimate. The workbook calculates the break-even point and three-year comparison from those inputs. The results are planning estimates based on the figures you enter.

What about overtime eligibility?

The comparison assumes the overload is covered by overtime-eligible, nonexempt staff paid the premium you set. Salaried-exempt employees above the federal weekly threshold are generally not owed overtime, so confirm who is eligible under the wage and hour rules that apply to you before you model it. The Benchmark tab notes the federal premium and threshold as a starting point.

What is the refund policy?

Digital products are covered by a 30-day money-back guarantee. To request a refund, email support@truestephr.com or reply to your receipt within 30 days of purchase.

What happens after I buy?

Your download link appears immediately after checkout, and the same link arrives in your email receipt. Open the workbook in Excel or Google Sheets, enter your hours and pay rates, and review the break-even point. For setup questions, email support@truestephr.com.

How the download works

Your files arrive as a single ZIP download, best opened on a computer. Save it, extract it (right-click and select Extract All on Windows, or double-click on a Mac), then open the Start Here file first. PDFs open in any reader, and editable files work in Microsoft Excel or free equivalents, including LibreOffice and Google Sheets. No other software is needed. Step-by-step help for every device is at truestephr.com/pages/download-help.

Scope

This planning and analysis model produces estimates based entirely on the inputs and assumptions you enter. Use those estimates to support decisions, rather than as accounting, tax, or legal conclusions. Check the assumptions against your own data. Have qualified counsel review decisions involving pay, headcount, or separation against applicable law before acting. General information, not legal, tax, or financial advice.