Pay & Hours4 min read

How to Calculate Work Hours (Step by Step, With Examples)

The exact method for calculating hours worked from start and end times, handling overnight shifts, unpaid breaks, and converting to decimal hours for pay.

Calculating work hours sounds trivial until an overnight shift, a split break, or a payroll decimal trips you up. Here is the exact method, with worked examples you can check against the free work hours calculator.

The four-step method

  • Step 1 — Find the shift span. Subtract the start time from the end time. 7:30 AM to 4:00 PM is 8 hours 30 minutes.
  • Step 2 — Handle overnight shifts. If the end time is earlier than the start time, the shift crossed midnight: add 24 hours. 10:00 PM to 6:00 AM is 8 hours, not negative 16.
  • Step 3 — Subtract unpaid breaks. A 30-minute unpaid lunch comes off the total. Paid rest breaks stay in.
  • Step 4 — Convert to decimal for pay. Divide leftover minutes by 60. 8 hours 15 minutes becomes 8.25 decimal hours, which payroll multiplies by your rate.

Worked example

Shift: 7:30 AM to 4:00 PM with a 30-minute unpaid lunch, at 22 dollars per hour.

  • Span: 8 hours 30 minutes
  • Minus unpaid lunch: 8 hours 0 minutes worked
  • Decimal: 8.0 hours
  • Gross pay: 8.0 x 22 = 176.00

Try the same numbers in the work hours calculator — it also splits regular and overtime hours if you set a threshold.

Overnight example

Shift: 10:00 PM to 6:30 AM with one 45-minute unpaid break.

  • Span across midnight: 8 hours 30 minutes
  • Minus break: 7 hours 45 minutes worked
  • Decimal: 7.75 hours

Where people go wrong

  • Forgetting which breaks are unpaid. Only unpaid breaks reduce hours worked — check your employment agreement.
  • Rounding minutes casually. 7:47 to 4:02 is 8 hours 15 minutes, not 8 hours. Small daily rounding compounds into real money across a pay period.
  • Mixing h:mm and decimal. 8 hours 30 minutes is 8.5 decimal hours, never 8.30.

If you are doing this every shift, that is exactly the job ShiftFlow automates — it logs each shift, applies your break and overtime rules, and shows estimated pay as you go. The calculator is the manual version; the app is the automatic one.

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