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How to Calculate Hours Worked (Step by Step, with Examples)

· 532 words

To calculate hours worked: subtract the start time from the end time, subtract unpaid breaks, convert the remaining minutes to decimal hours (minutes ÷ 60), and add the days together per workweek. That single sentence is the whole method — the rest of this guide makes each step foolproof.

Step 1 — Find each day’s span

Write down the clock-in and clock-out time, then subtract. The easiest mental model is converting both times to minutes since midnight:

TimeMinutes since midnight
8:30 AM510
5:15 PM1,035

1,035 − 510 = 525 minutes = 8 hours 45 minutes. For overnight shifts the end lands “before” the start — add 24 hours: 10:00 PM (1,320) to 6:00 AM (360 + 1,440 = 1,800) is 480 minutes = 8 hours.

Step 2 — Deduct unpaid breaks only

Not every break leaves your paycheck:

So an 8:30 AM–5:15 PM day with a 45-minute unpaid lunch is 8:45 − 0:45 = 8 hours.

Step 3 — Convert minutes to decimal hours

Payroll multiplies decimal hours by your rate. Divide minutes by 60:

h:mmDecimal
8:158.25
8:208.33
8:308.50
8:458.75

The classic mistake is writing 8 hours 30 minutes as “8.30” — that’s 8 hours 18 minutes in decimal. The decimal hours calculator has the full 1–60 minute chart.

Step 4 — Total the workweek and split overtime

Add the daily figures inside each workweek (a fixed 7-day cycle your employer defines). Hours over 40 in that week are overtime at 1.5× under federal law; California and a few other states add daily thresholds — over 8 hours in a day in California earns overtime even in a short week. Overtime never averages across weeks, even on biweekly pay.

Full worked example

A warehouse associate, Monday–Friday, 7:00 AM–3:45 PM with a 30-minute unpaid lunch, plus a 6-hour Saturday:

DaySpanLunchPaid hours
Mon–Fri (each)8:450:308:15 (8.25)
Saturday6:006:00 (6.00)
Week total47:15 (47.25)

Overtime split: 40 regular + 7.25 OT. At $17/hour: 40 × $17 + 7.25 × $25.50 = $680 + $184.88 = $864.88 gross.

The time card calculator runs this whole pipeline — spans, breaks, decimals, state overtime — as you type, and exports the result for payroll.

Avoid the three classic errors

  1. Treating minutes as decimals (8:30 ≠ 8.30 hours).
  2. Deducting paid rest breaks — only bona fide meal periods come out.
  3. Averaging two weeks to dodge overtime — each workweek stands alone.

Frequently asked questions

What is the formula for hours worked?
How do I calculate hours worked with a 30-minute lunch?
How do I add up mixed hours and minutes?
Should I calculate hours worked in decimal or hh:mm?

Sources & further reading

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