How to Calculate Hours Worked

Start with your clock-in and clock-out times for each shift, then subtract any unpaid breaks.

Basic formula

Clock-Out Time − Clock-In Time − Unpaid Breaks = Hours Worked

If you clock in at 8:00 AM and clock out at 4:30 PM with a 30-minute lunch, you worked 8 hours (8.5 hours minus 0.5 hours for lunch).

Rounding to the nearest quarter hour

Many employers round clock-in times to the nearest 15 minutes using the 7-minute rule:

• 1–7 minutes past: round down. Clock in at 7:06 → counted as 7:00.
• 8–14 minutes past: round up. Clock in at 7:08 → counted as 7:15.

The DOL allows this rounding as long as it averages out fairly over time and doesn’t systematically short employees.

Weekly and biweekly totals

Add up daily hours across your pay period. For a biweekly schedule, sum all shifts from both weeks. Keep regular hours and overtime hours separate. You need both for the pay calculation.

Converting Hours and Minutes to Decimal

Payroll systems use decimal hours, not hours-and-minutes. To convert: divide the minutes by 60.

Example: 7 hours 45 minutes = 7 + (45 ÷ 60) = 7.75 hours

Common conversions

• 5 min — 0.08
• 10 min — 0.17
• 15 min — 0.25
• 20 min — 0.33
• 25 min — 0.42
• 30 min — 0.50
• 35 min — 0.58
• 40 min — 0.67
• 45 min — 0.75
• 50 min — 0.83
• 55 min — 0.92

Why it matters

If you log 7 hours 45 minutes and your employer enters 7.45 instead of 7.75, you lose 18 minutes of pay per shift. Over a 5-day week, that’s 1.5 hours of unpaid work. Always verify that your timesheet converts minutes to decimals correctly.

Gross Pay From Hours Worked

Once you have your decimal hours, multiply by your hourly rate. If you worked overtime, those hours are paid at 1.5× your regular rate.

Formula

(Regular Hours × Hourly Rate) + (Overtime Hours × Hourly Rate × 1.5) = Gross Pay

Weekly example

You work 43 hours at $22/hr:

1. Regular pay: 40 hours × $22 = $880
2. Overtime pay: 3 hours × $33 ($22 × 1.5) = $99
3. Total gross: $880 + $99 = $979

Biweekly example

You work 44.25 hours in week 1 and 38 hours in week 2 at $26/hr:

1. Week 1 regular: 40 × $26 = $1,040
2. Week 1 overtime: 4.25 × $39 ($26 × 1.5) = $165.75
3. Week 2 regular: 38 × $26 = $988
4. Biweekly gross: $1,040 + $165.75 + $988 = $2,193.75

Notice that overtime applies only to week 1. Even though total hours for the pay period are 82.25, week 2 stays under 40 hours and has no overtime.

From Gross Pay to Take-Home Pay

Your gross pay is the starting point. Between your timesheet and your bank account, several deductions take a cut.

What comes out of every paycheck

• Federal income tax: Based on your W-4 filing status and income level
• State income tax: Varies by state — zero in Texas and Florida, over 10% at higher incomes in California and New York
• Social Security: 6.2% on wages up to $184,500 (2026)
• Medicare: 1.45% on all wages, plus 0.9% on earnings above $200,000
• Pre-tax deductions: Health insurance premiums, 401(k) contributions, HSA

Quick estimate

For a rough number, multiply your gross pay by 0.70 to 0.80. The lower end applies if you live in a high-tax state with pre-tax benefit deductions. The higher end applies in no-income-tax states with minimal deductions.

Using the $979 gross from the example above:

• Mid-range estimate (× 0.78): ~$764
• High-tax state (× 0.72): ~$705
• No state tax (× 0.82): ~$803

For exact numbers based on your state, filing status, and deductions, use our Paycheck Calculator.

Overtime Rules That Affect Your Pay

Federal and state overtime laws determine when time-and-a-half kicks in.

Federal rule (FLSA)

Non-exempt employees earn 1.5× their regular rate for every hour worked beyond 40 in a single workweek. The FLSA does not require daily overtime, only weekly.

State exceptions

Some states go beyond the federal minimum:

• California: Daily overtime after 8 hours, double-time after 12 hours. A seventh consecutive day in a workweek triggers overtime for the first 8 hours and double-time after that.
• Colorado: Daily overtime after 12 hours.
• Alaska: Daily overtime after 8 hours.

If your state has stricter rules, the state rules apply.

What counts as hours worked

According to DOL Fact Sheet #22, hours worked include:

• Time spent on job duties (on-site or off-site)
• Short breaks (5–20 minutes)
• Required training and meetings
• On-call time when your movement is restricted

Hours worked do not include meal breaks of 30+ minutes (if you’re fully relieved of duties) or normal commuting time.