How to Calculate Work Hours & Pay: A Complete Guide
Whether you are an hourly employee checking your paycheck, a freelancer billing clients, or a manager reviewing timesheets, knowing how to calculate work hours accurately is essential. Below is the standard method, the FLSA overtime rule, and three worked examples for common scenarios.
Basic Work Hours Calculation
The simplest formula for calculating hours worked in a single shift:
Hours Worked = End Time - Start Time - Break Time
Example: 9:00 AM to 5:30 PM with 30 min unpaid break = 8.0 hours.
Note: paid breaks (e.g., a 15-min coffee break at a desk) typically count as work time and should NOT be subtracted. Only unpaid meal breaks (typically 30+ min where the employee is fully relieved) are deducted.
Calculating Pay from Hours Worked
Once you know your total hours, multiply by your hourly rate:
Gross Pay = Total Hours × Hourly Rate
Example: 40 hours × $18/hour = $720 gross pay.
Gross pay is the starting point — federal withholding (10–37% depending on bracket), Social Security (6.2%), Medicare (1.45%), and any state income tax reduce it to your actual take-home. Use the Salary Calculator for the full conversion.
Weekly, Monthly, and Annual Hours
A standard full-time U.S. schedule is 40 hours per week. Multiplying out:
- Weekly: 40 hours (FLSA threshold for overtime)
- Monthly: 40 × 52 ÷ 12 = 173.3 hours (≈ 4.33 weeks/mo)
- Annual: 40 × 52 = 2,080 hours (used by most salaried-to-hourly conversions; excludes paid holidays/PTO)
- Working days/year (2026): 261 days = 2,088 hours at 8 hr/day — see Work Hours Calculator for the live table.
| Day | Start | End | Break | Hours |
|---|---|---|---|---|
| Monday | 9:00 AM | 5:00 PM | 30 min | 7.5 |
| Tuesday | 9:00 AM | 5:00 PM | 30 min | 7.5 |
| Wednesday | 9:00 AM | 5:00 PM | 30 min | 7.5 |
| Thursday | 9:00 AM | 5:00 PM | 30 min | 7.5 |
| Friday | 9:00 AM | 5:00 PM | 30 min | 7.5 |
| Weekly Total | 37.5 | |||
37.5 hours reflects the standard 8-hour workday minus a 30-minute lunch. U.S. salaried non-exempt workers past 40 hours trigger FLSA overtime — see next section.
Calculating Overtime (FLSA 1.5× Rule)
The U.S. Fair Labor Standards Act requires covered (non-exempt) employees be paid 1.5× the regular rate for any hours worked over 40 in a workweek. The workweek is a fixed, recurring 7-day period (168 hours) the employer defines — it does not have to align with the calendar week.
Overtime Rate = Regular Rate × 1.5
Example: $18/hr × 1.5 = $27.00/hr overtime
If you work 45 hours in a week: (40 × $18) + (5 × $27) = $720 + $135 = $855 gross.
California, Colorado, and Alaska have daily-overtime rules (1.5× past 8 hr/day or 40 hr/wk, whichever is greater); other states follow the federal weekly threshold only. Salaried employees earning at least the FLSA minimum salary threshold ($684/week, 2026) are typically exempt from overtime.
Double-Time & Special Cases
Some states and employers require double-time pay (2× rate) in addition to overtime. California, for example, requires 2× pay after 12 hours in a workday and for any hours past 8 on the seventh consecutive workday. Collective bargaining agreements in union workplaces often include premium rates for night shifts, holidays, and weekends.
Common Work Hour Scenarios
- Shift work crossing midnight: Night shifts (e.g., 10 PM – 6 AM) span two calendar days. Apps and timesheets often miscount these — use a calculator that handles date rollover, not just clock arithmetic.
- Freelance billing: Track time per project/client and bill in 15-minute increments (industry standard). Round UP, not down, to avoid undercharging.
- Part-time: Prorate benefits based on hours worked vs. full-time equivalent (FTE = 40 hr/wk for most U.S. employers).
- Time off / PTO: Subtract paid time off, sick days, and holidays from expected work hours when computing your true working-year count.
- Remote work + breaks: The FLSA still applies to remote workers; non-exempt employees must record all work time, including after-hours email.
Hourly vs. Salary: When Each Pays More
A salaried worker making $50,000/year technically earns $24.04/hour (50,000 ÷ 2,080), but an hourly worker earning $24/hour who works exactly 40 hours per week takes home the same. The differences show up in:
- Overtime eligibility: Hourly non-exempt workers earn 1.5× past 40 hr/wk; salaried exempt workers usually do not.
- Predictability: Salaried pay is the same each period; hourly fluctuates with hours worked.
- Benefits: Salaried positions more commonly include health insurance, 401(k) match, and equity.
- Risk: Salaried workers can be asked to work extra without extra pay; hourly workers are paid for every hour.
Key Takeaways
- Subtract break time — but only unpaid meal breaks, not paid short breaks.
- Track hours daily rather than estimating at the end of the week.
- For overtime, use the 1.5× rate for hours over 40 per week (FLSA).
- Annual full-time = 2,080 hours (40 × 52). Monthly = 173.3 hours.
- Use our Work Hours Calculator to compute hours and earnings instantly, with overnight-shift and overtime handling built in.
About this guide
Methodology: 40-hour federal workweek per U.S. DOL Fact Sheet #22; 2,080-hour year is the standard workyear conversion used by the IRS and BLS. Reviewed by the Maya Chen (Chartered Financial Analyst) on October 9, 2026, against current FLSA thresholds.