How to Calculate Hours Worked (Timesheets & Payroll)
Timesheets trip people up because clock time is in hours and minutes but pay is in decimal hours — and a break or a shift past midnight complicates the subtraction. Here is how to get hours worked right every time.
Clock time to decimal hours
Pay is calculated in decimal hours, so minutes must be converted: divide the minutes by 60. 8 hours 30 minutes is 8.5 hours; 8 hours 15 minutes is 8.25. The common mistake is treating :30 as 0.30 instead of 0.50 — always divide the minutes by 60, not by 100.
Subtracting the break
Work out the gross span from clock-in to clock-out, then subtract unpaid breaks. Clock in at 9:00 and out at 17:30 is 8.5 hours gross; take off a 30-minute unpaid lunch and you have 8.0 paid hours. Whether breaks are paid depends on local law and your employer, so know which of yours count.
Totalling a week and overtime
Add each day's paid hours for the weekly total. Many places pay overtime — often 1.5x — beyond a threshold such as 40 hours a week, so split the total into regular and overtime hours before multiplying by the rate. The Hours Calculator adds a week of shifts and handles the break subtraction.
Shifts past midnight and rounding
For a shift that crosses midnight, add 24 hours to the clock-out before subtracting: out at 2:00 after clocking in at 22:00 is (26:00 - 22:00) = 4 hours. On rounding, many employers round to the nearest quarter-hour; done fairly it evens out, but always round consistently so it neither favours nor cheats either side.
Frequently asked questions
How do I convert 45 minutes to decimal? 45 / 60 = 0.75 hours.
Are breaks paid? It varies by law and employer — short rest breaks often are, meal breaks often are not.
How is overtime figured? Usually hours beyond a weekly threshold are paid at a higher multiple, commonly 1.5x.
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Last updated: August 27, 2026