TimeCalcLab
Work & Hours

Timesheet Hours & Payroll Calculations Explained

A timesheet turns clock times into a single number payroll can use. This guide walks through every step — elapsed time, break deductions, decimal conversion, weekly totals, overtime and rounding — with realistic examples you can check against your own entries. It explains the maths; it does not state any jurisdiction's payroll rules.

From clock times to worked time

Each entry starts as a span on the clock. Subtract the start time from the end time to get the elapsed span, then subtract any unpaid break:

Worked = (End Time − Start Time) − Unpaid Break

A 9:00 AM to 5:30 PM shift with a 30-minute unpaid lunch is 8h 30m elapsed minus 30m, so 8h 00m worked. Only unpaid time comes off — a paid break stays in the total. The Work Hours Calculator does this per shift and totals them; the Time Card Calculator does the same from a full Monday–Sunday week of clock times.

Overnight entries

When a shift crosses midnight the end time is earlier than the start on the clock. Add 24 hours to the difference: 22:00 to 06:00 is (06:00 − 22:00) + 24h = 8 hours. The calculators detect this automatically and label the entry overnight.

Converting to decimal hours

Payroll systems usually store time as decimal hours, where minutes are a fraction of an hour. Divide the minutes by 60 and add them to the whole hours:

Decimal Hours = Hours + (Minutes ÷ 60)

7h 45m = 7 + 45 ÷ 60 = 7.75 decimal hours. It is not 7.45 — that would be 7 hours and 45 hundredths of an hour, which is only 27 minutes. See Decimal Hours Explained for the full breakdown, or the Time & Decimal Hours Reference for a printable table of every value from 1 to 60 minutes.

Building a weekly total

Convert each day to decimal hours, then add the decimals. Because decimals add like ordinary numbers, there is no minute-carrying and no carry error.

DayWorkedDecimal
Mon8h 00m8.00
Tue7h 30m7.50
Wed8h 00m8.00
Thu7h 45m7.75
Fri8h 00m8.00
Week39h 15m39.25

The Timesheet Calculator totals weekly and biweekly entries in both formats. For a biweekly period, each week is totalled separately and then combined.

Overtime on a timesheet

Hours above a threshold count as overtime. The threshold defaults to 40 hours a week but is set by your contract or local law, so check what applies to you. For a biweekly timesheet, each week is compared to the threshold on its own — a 45-hour week and a 30-hour week give 5 hours of overtime in week one and none in week two, not 5 hours against a 75-hour combined total.

Overtime pay multiplies the overtime hours by your base rate and an overtime multiplier (commonly 1.5×, but set by agreement). For the full overtime breakdown with worked pay examples, see Overtime Hours Explained, or use the Overtime Calculator to split a total into regular and overtime hours and estimate pay.

Worked example: a standard week

Mon–Fri 9:00 AM–5:00 PM with a 30-minute unpaid lunch each day.

  • Each day: 8h 00m elapsed − 30m lunch = 7h 30m worked = 7.50 decimal hours.
  • Week: 7.50 × 5 = 37.50 decimal hours = 37h 30m.
  • Pay at $20/h: 37.50 × $20 = $750.00 gross.
  • Overtime (40h threshold): none — 37.50 is under 40.

Worked example: a week with overtime

Five days of 8:00 AM–6:00 PM with a 30-minute unpaid lunch.

  • Each day: 10h 00m elapsed − 30m lunch = 9h 30m worked = 9.50 decimal hours.
  • Week: 9.50 × 5 = 47.50 decimal hours = 47h 30m.
  • Split (40h threshold): 40.00 regular + 7.50 overtime.
  • Pay at $18/h, 1.5× overtime: regular 40 × $18 = $720.00; overtime 7.50 × $18 × 1.5 = $202.50; gross = $922.50.

Worked example: biweekly with uneven days

Week 1: 8.00, 7.50, 8.00, 7.75, 8.00 = 39.25. Week 2: 9.50, 9.50, 8.00, 9.50, 9.50 = 46.00.

  • Week 1: 39.25 regular, 0.00 overtime (under 40).
  • Week 2: 40.00 regular + 6.00 overtime.
  • Combined: 79.25 regular + 6.00 overtime = 85.25 total hours.

Each week is judged against the threshold independently, which is the conservative reading most payroll systems apply.

Rounding

The safe order is convert → total → round. Round the final weekly decimal to two decimals for storage. Rounding each entry before totalling drifts the week — ten entries each rounded down by 0.005 lose three minutes. Some employers instead round clock times to the nearest 1/10, 1/4 or 1/2 hour before calculating; that is a policy on top of the maths, not the maths itself, and it varies by employer and jurisdiction.

Timesheet vs time card

A time card records clock-in and clock-out punches and derives hours from the span between them. A timesheet records the hours worked each day directly, which you then total. If you have punches, use the Time Card Calculator; if you already know each day's hours, use the Timesheet Calculator. For a single shift's length with a break, the Shift Calculator is the right tool, and the Lunch Break Calculator handles the break itself.

Common mistakes

  • Writing 7.30 for 7h 30m. The correct decimal is 7.50. Minutes are sixtieths of an hour, not hundredths.
  • Forgetting unpaid breaks. A 9-to-5 with an unpaid lunch is 7.5 or 8 worked hours, not 8.5. Always deduct unpaid time.
  • Adding hours and minutes as decimals. 8h 30m + 7h 45m is 16h 15m, not 15.75. Convert to decimals first, or let a calculator carry.
  • Applying overtime across two weeks. Use a per-week threshold, not an 80-hour biweekly one, unless your rules say otherwise.
  • Rounding each entry before totalling. Convert and total first, then round the final sum.
  • Subtracting a paid break. Only unpaid breaks come off. Deducting a paid lunch undercounts the shift.

FAQs

How do I calculate timesheet hours?
For each day, subtract the start time from the end time to get the elapsed span, subtract any unpaid break, then convert to decimal hours. Add the daily decimals for the weekly total. The Timesheet Calculator does this from per-day hours; the Time Card Calculator does it from clock times.
How do I convert timesheet hours to decimals?
Divide the minutes by 60 and add the result to the hours. 7h 45m = 7 + 45 ÷ 60 = 7.50 decimal hours. It is not 7.45. See the Time & Decimal Hours Reference for a full table.
How is overtime calculated on a timesheet?
Hours above the weekly threshold count as overtime. For biweekly timesheets, each week is compared to the threshold separately. Overtime pay multiplies the overtime hours by your base rate and an overtime multiplier. Actual entitlement depends on your employer and applicable law.
Should I round each timesheet entry?
No — convert and total first, then round the final weekly decimal to two places. Rounding each entry before totalling drifts the week's total. Some employers round clock times to the nearest 1/4 or 1/10 hour as a policy; check your own agreement.
What is the difference between a timesheet and a time card?
A time card records clock-in and clock-out punches and derives hours from the span. A timesheet records the hours worked each day directly. Use the Time Card Calculator for punches and the Timesheet Calculator when you already know each day's hours.