How to Calculate Overtime Hours
To calculate overtime hours, first total the time actually worked during the relevant work period, then compare that total with the overtime threshold that applies to your job and location. The arithmetic is straightforward; the rule that defines overtime can vary.
Practical timekeeping guide · ShiftHours
1. Total the hours actually worked
Add each shift after subtracting unpaid breaks. For example, 8 hours on Monday, 9 on Tuesday, 8 on Wednesday, 10 on Thursday and 7 on Friday equals 42 hours worked. Keep daily records in hours and minutes before converting to decimals.
If your time records use clock-in and clock-out times, calculate each shift separately. The ShiftHours calculator can help with the daily duration and unpaid break subtraction.
2. Compare the total with the applicable threshold
If your applicable rule uses a 40-hour weekly threshold, 42 hours worked would mean 2 hours above that threshold. This example demonstrates the arithmetic only; it does not establish that every worker is entitled to overtime after 40 hours.
Overtime rules may depend on country, state or province, job classification, contract, and whether daily or weekly thresholds apply. Confirm the rule that governs your situation before calculating pay.
3. Keep overtime hours separate from overtime pay
Overtime hours are a time total. Overtime pay additionally depends on the applicable rate, base pay, eligible hours, and any required calculation method. Do not assume that multiplying all extra hours by a single rate is always correct.
Record the regular hours, potentially overtime hours, pay period, and rule used so the calculation can be checked later.
Common mistakes
Avoid counting an unpaid meal break as work time, adding hours from different workweeks together, or rounding each shift too early. Preserve exact minutes and check whether paid breaks count under your workplace policy.
For a transparent record, save the original clock times alongside the calculated totals. Use the calculator for time arithmetic, then apply the correct local payroll rules.
Use the free ShiftHours work hours calculator to calculate shift length, subtract unpaid breaks, and view decimal hours. For weekly totals, try the weekly calculator.
Example: hours above a chosen threshold
If a schedule records 46 hours in a week and the applicable overtime threshold is 40 hours, the arithmetic difference is 6 hours above that threshold. This does not determine legal eligibility or the correct threshold; those depend on the worker’s location and circumstances.
Related resources
Open the work hours calculator · Browse all ShiftHours articles · Decimal hours chart