How to Calculate Your Work Hours and Pay
From the moment you clock in to the number that lands in your bank account, here is the full, simple chain for working out your work hours and pay yourself.
The Full Chain in One View
Every pay calculation follows the same five steps. Get these in order and you can check any paycheck:
- Worked hours = clock-out − clock-in − unpaid break
- Convert minutes to decimal hours
- Split regular vs overtime hours
- Apply hourly rate (and any differential) → gross pay
- Subtract tax → net take-home pay
Step 1: Worked Hours
Example: in at 8:00 AM, out at 4:30 PM, 30-minute unpaid lunch. That is 8 hours 30 minutes on site, minus 30 minutes = 8 hours worked.
Step 2: Convert to Decimal
Payroll math needs decimals: 8 hours 0 minutes = 8.00. If it had been 8 hours 15 minutes, that is 8.25 (15 ÷ 60). Our payroll hours guide has the full conversion table.
Step 3: Regular vs Overtime
On a daily 8-hour overtime rule, the first 8 worked hours are regular and anything above is overtime at 1.5×. Our 8-hour example is all regular. A 9.5-hour day would be 8 regular + 1.5 overtime.
Step 4: Gross Pay
Multiply hours by rate. 8.00 hours × $18.00/hr = $144.00 gross. If a shift differential applies, multiply the result by the differential — see shift differential pay.
| Item | Calculation | Amount |
|---|---|---|
| Regular pay | 8.00 × $18.00 | $144.00 |
| Overtime pay | 0 × $27.00 | $0.00 |
| Gross pay | $144.00 |
Step 5: Net Take-Home Pay
Gross is before tax. To estimate net, subtract your effective tax/deduction rate. At a 20% estimated rate: $144.00 − (20% × $144.00) = $144.00 − $28.80 = $115.20 take-home. Real deductions vary by location and circumstances, so treat this as an estimate, not a tax filing.
Gross pay is what you earned; net pay is what you keep. Always know which number you are looking at.
Projecting Weekly and Monthly
Once you know one day, multiply: 5 days ≈ a week, about 20 days ≈ a month, about 240 days ≈ a year. These are simple projections — actual months vary — but they are useful for budgeting. The work calculator does all five steps and the projections for you in one screen.
Do all five steps at once
Enter your times, rate and tax — the work calculator returns hours, gross and net pay instantly.
Open the Work CalculatorFrequently Asked Questions
How do I calculate my work hours and pay?
Subtract clock-in from clock-out and remove unpaid breaks to get worked hours, convert minutes to decimal, split regular and overtime hours, multiply by your rate for gross pay, then subtract tax for net take-home pay.
What is the difference between gross pay and net pay?
Gross pay is your earnings before any deductions. Net pay, or take-home pay, is what remains after tax and other deductions are subtracted from gross.
How do I work out my hourly pay for a day?
Multiply your decimal worked hours by your hourly rate. For example, 8 hours at $18 per hour is $144 gross before tax.
How do I estimate my take-home pay?
Subtract your estimated tax and deduction rate from gross pay. At a 20% estimate, $144 gross becomes about $115.20 net. Actual deductions vary by location and circumstances.
How do I project monthly pay from one shift?
Multiply one day's net pay by roughly 20 working days for a monthly estimate, or about 240 days for a yearly estimate. These are simple projections; actual months vary.
This guide explains common pay practice for general education and uses estimated tax for illustration only. It is not tax advice — actual deductions depend on your location and circumstances.