Disclaimer: Informational only, not tax, legal, or financial advice. Rules and rates can change; check current IRS/state guidance or consult a professional.
Paycheck Calculator (US)
Quick Answer: How Do I Convert Hours Worked to Pay?
Multiply your regular hours by your hourly rate, add any overtime hours at 1.5× your rate, then multiply the gross total by 0.70–0.80 to estimate take-home pay.
Example: 40 hrs × $22 + 3 OT hrs × $33 = $979 gross → ~$763 net
Key Takeaways
- Convert minutes to decimals first. Payroll uses decimal hours (7 hrs 45 min = 7.75), not hours-and-minutes.
- Gross pay = (regular hours × rate) + (overtime hours × rate × 1.5). Federal law requires 1.5× pay for hours over 40 per week.
- Gross pay is not take-home pay. Taxes and deductions typically reduce your paycheck by 20–30%.
- Lunch breaks are usually unpaid. Most employers deduct 30–60 minutes per shift from your total hours.
- Overtime is calculated per week, not per pay period. Working 50 hours one week and 30 the next still earns 10 hours of overtime.
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:
- Regular pay: 40 hours × $22 = $880
- Overtime pay: 3 hours × $33 ($22 × 1.5) = $99
- Total gross: $880 + $99 = $979
Biweekly example
You work 44.25 hours in week 1 and 38 hours in week 2 at $26/hr:
- Week 1 regular: 40 × $26 = $1,040
- Week 1 overtime: 4.25 × $39 ($26 × 1.5) = $165.75
- Week 2 regular: 38 × $26 = $988
- 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.
Timesheet-to-Paycheck Examples
These examples use 2026 figures. Your actual take-home will vary based on state, filing status, and deductions.
- Hours worked: 43 (40 regular + 3 overtime)
- Hourly rate: $22.00
- Regular pay: 40 × $22 = $880.00
- Overtime pay: 3 × $33 = $99.00
- Gross pay: $979.00
- Estimated take-home (× 0.78): ~$764
- Annualized equivalent: $979 × 52 = $50,908/yr gross
- Shift: 8:00 AM–4:30 PM, five days, 30-min unpaid lunch each day
- Daily hours: 8.5 − 0.5 = 8.0 hours (Mon–Thu), 6.5 hrs (Fri)
- Weekly hours: (8.0 × 4) + 6.5 = 38.5 hours
- Hourly rate: $18.00
- Gross pay: 38.5 × $18 = $693.00
- No overtime: Under 40 hours
- Estimated take-home (× 0.78): ~$541
- Week 1: 44.25 hours (4.25 hrs overtime)
- Week 2: 38 hours (no overtime)
- Total hours: 82.25
- Regular pay: (40 + 38) × $26 = $2,028.00
- Overtime pay: 4.25 × $39 = $165.75
- Biweekly gross: $2,193.75
- Estimated biweekly take-home (× 0.78): ~$1,711
- Annualized: $2,193.75 × 26 = $57,037.50/yr gross
Frequently Asked Questions
Tips for Tracking Hours and Pay
- Verify your timesheet decimals. 7 hours 45 minutes is 7.75 in decimal, not 7.45. This mistake costs you 18 minutes of pay per shift.
- Track overtime by the week, not the pay period. Your employer should calculate overtime separately for each workweek, even on a biweekly schedule.
- Keep your own time records. Log your clock-in, clock-out, and break times independently. If there's ever a dispute, your records are your best evidence.
- Check your state's overtime laws. California, Alaska, and Colorado have daily overtime rules that go beyond the federal 40-hour weekly threshold.
- Use gross pay for rate calculations, net pay for budgeting. When figuring out your hourly rate or comparing job offers, use gross figures. When planning monthly expenses, use your actual take-home amount.
References
- DOL Overtime Pay Requirements (FLSA) — Federal rules on overtime eligibility, the 40-hour threshold, and the 1.5× rate.
- DOL Fact Sheet #22 — Hours Worked Under the FLSA — What counts as compensable work time: on-call, training, breaks, and travel.
- DOL State Labor Law Guides — State-by-state overtime rules, including daily overtime thresholds.