Start with elapsed time
Convert clock-in and clock-out to minutes after midnight, subtract the start from the end, and convert the result back to hours and minutes. If the finish is earlier than the start, add 24 hours before subtracting because the shift crossed midnight.
Subtract unpaid breaks
Breaks should be deducted only when they are unpaid. For an 8:00 AM–4:30 PM shift with a 30-minute unpaid break, elapsed time is 8 hours 30 minutes and worked time is 8 hours. If the break is paid, worked time remains 8 hours 30 minutes.
Convert minutes to decimal hours correctly
Divide minutes by 60. Fifteen minutes equals 0.25, 30 minutes equals 0.50 and 45 minutes equals 0.75. A time of 7 hours 20 minutes is 7 + 20/60, or 7.333… hours. A payroll system may display 7.33 after rounding.
Separate calculation from overtime eligibility
A calculator can compare total hours with a threshold, but the applicable rules may count hours daily, weekly or through another system. Eligibility may depend on worker classification, industry, jurisdiction, agreement and the employer’s defined workweek. Confirm the rules that apply before treating the estimate as payroll.
Understand pay estimates
Base pay is usually estimated as regular hours multiplied by the hourly rate. Overtime estimates multiply overtime hours by the chosen premium. The result can differ from a pay statement because of taxes, paid leave, bonuses, shift differentials, rounding practices, multiple rates or other payroll rules.
Check before submitting
- Confirm AM and PM on every entry.
- Check that overnight shifts were intentional.
- Subtract unpaid—not paid—breaks.
- Confirm the workweek boundaries used by payroll.
- Compare the final total with source records and keep the exported copy.
Limitations
Ready Hours is an arithmetic and planning tool, not a timekeeping system, employment-law service or official pay statement. Keep original records and resolve discrepancies with the relevant employer or professional adviser.
Official starting points
Rules vary by location. Examples include the U.S. Department of Labor overtime resources and the UK government minimum-wage calculation guidance. Use the authority responsible for your own jurisdiction.
Published and last updated 6 September 2026. The calculation examples are reviewed when calculator behavior changes.