How to Calculate Your Shift Pay (With Examples)

Why Calculating Your Shift Pay Matters

As an hourly worker, knowing exactly how much you earn each shift is essential. Many workers simply trust their employer's calculations, but mistakes happen. By understanding how to calculate your own pay, you can:

• Verify your paycheck is accurate
• Plan your finances better
• Know exactly what each shift is worth before you work it
• Catch errors before they become bigger problems

Let's break down exactly how to calculate your shift pay, step by step.

The Basic Formula for Shift Pay

The simplest calculation for shift pay is:

Hours Worked × Hourly Rate = Gross Pay

For example, if you work 8 hours at $15 per hour:

8 hours × $15 = $120 gross pay

But real-world shifts are rarely this simple. Let's look at more realistic scenarios.

Calculating Pay with Breaks

Breaks can significantly affect your final pay. There are two types:

Paid Breaks

These count toward your working hours. If you take a 15-minute paid break during an 8-hour shift, you still get paid for 8 hours.

Unpaid Breaks

These are deducted from your working hours. Most lunch breaks (30-60 minutes) are unpaid.

Example with Unpaid Break:

• Shift: 9:00 AM to 5:30 PM (8.5 hours total)
• Unpaid lunch break: 30 minutes
• Actual paid hours: 8.5 - 0.5 = 8 hours
• Hourly rate: $16
• Gross pay: 8 × $16 = $128

How to Calculate Overtime Pay

Overtime rules vary by location, but the most common standard is:

• Regular hours: First 40 hours per week at normal rate
• Overtime hours: Hours beyond 40 at 1.5× your regular rate

Example:

• Weekly hours: 48 hours
• Hourly rate: $18
• Regular pay: 40 × $18 = $720
• Overtime hours: 48 - 40 = 8 hours
• Overtime pay: 8 × ($18 × 1.5) = 8 × $27 = $216
• Total weekly pay: $720 + $216 = $936

Some states like California also have daily overtime (hours beyond 8 in a single day), so check your local laws.

Real-World Calculation Example

Let's walk through a complete week for a warehouse worker:

Worker Details:

• Hourly rate: $17.50
• 30-minute unpaid lunch each day
• Overtime at 1.5× after 40 hours

Weekly Schedule:

Total paid hours: 42.5 hours

Calculation:

• Regular hours: 40 × $17.50 = $700
• Overtime hours: 2.5 × ($17.50 × 1.5) = 2.5 × $26.25 = $65.63
• Gross weekly pay: $765.63

Common Mistakes to Avoid

Forgetting to subtract unpaid breaks – Always deduct lunch if it's unpaid

Rounding errors – Track exact minutes, not approximate hours

Missing overtime – Know your overtime threshold (usually 40 hours/week)

Ignoring shift differentials – Night shifts or weekends may pay more

How ShiftWorth Makes This Easy

Calculating shift pay manually works, but it's time-consuming and error-prone. ShiftWorth automatically:

• Tracks your exact clock-in and clock-out times
• Handles paid and unpaid breaks
• Calculates overtime at your set rate
• Shows you earnings in real-time as you work
• Generates weekly and monthly summaries

No more spreadsheets. No more guessing. Just tap clock in, work your shift, and see exactly what you earned.

Summary

To calculate your shift pay:

Track your exact hours worked

Subtract any unpaid breaks

Apply your hourly rate to regular hours

Calculate overtime at 1.5× for hours over 40

Add it all together

Understanding your pay empowers you to catch errors and plan your finances. Whether you calculate manually or use an app like ShiftWorth, the important thing is knowing what your time is worth.