Why Does Excel Show Time as a Decimal Like 0.354 Instead of Hours?
Excel's date serial number system goes back to its very first release (Excel 1.0 for Mac, 1985), copied from Lotus 1-2-3 for file compatibility when Excel came to Windows in 1987. Every date and time in this system is stored as a plain number. The number 1.0 = January 1, 1900. The number 0.5 = noon. So 8:30 AM is stored as 0.354167, because 8.5 hours divided by 24 hours equals 0.354167. This behavior is the same in Microsoft 365, Excel 2024, Excel 2021, Excel 2019, and everything older.
When you format a cell as h:mm, Excel translates that decimal back into something readable. Looks fine. But the underlying number is still a fraction. The problem hits when you try to use that value in a pay formula. You end up multiplying someone's wage by 0.354 instead of 8.5. That's a 24x error, and it's embarrassingly easy to miss until someone's paycheck comes out wrong.
You always just multiply by 24. That's the whole trick. Every formula in this guide is a variation of that one idea.
What you see is not what Excel stores
Format a cell containing 8:30 as a plain number and Excel shows 0.354167, not 8.5. You must multiply by 24 to get decimal hours. Using the raw 0.354 value in payroll math will produce a completely wrong result.
How Do You Convert an Excel Time Value to Decimal Hours?
When your time is stored as an Excel time value (formatted as h:mm or HH:MM)
You typed times directly into Excel, they look right (8:30, 7:45), and now you need decimal hours for payroll, a client invoice, or a time card. This is the case you'll hit most often. One formula does it.
=A2*24
Multiply by 24. Excel sees 8:30 as 0.354167. 0.354167 times 24 is 8.5. Format the result cell as "Number" with 2 decimal places and you're done.
| Cell A2 (displays as) | Formula | Result (decimal hours) |
|---|---|---|
| 8:30 | =A2*24 | 8.5 |
| 7:45 | =A2*24 | 7.75 |
| 9:15 | =A2*24 | 9.25 |
| 12:00 | =A2*24 | 12.0 |
| 0:30 | =A2*24 | 0.5 |
Works the same way in Google Sheets, no changes needed. If you'd rather see the math spelled out explicitly, there's a longer version that extracts hours and minutes separately:
=(HOUR(A2)+MINUTE(A2)/60)
This pulls the hour component directly and divides the minutes by 60 before adding them together. More typing, same result. It's useful if you're showing someone else how the conversion works, or troubleshooting a formula that's misbehaving. Microsoft's docs cover how Excel's time serial number system works if you want to go deeper.
How Do You Convert a Text Time String Like "7:45" to Decimal Hours in Excel?
When your time is stored as text like "7:45" or "07:45"
Time data exported from other tools, pasted from a CSV, or pulled from a database often lands in Excel as plain text rather than an actual time value. You can usually tell because the values are left-aligned in their cells, while real Excel times sit right-aligned. Or just try =A2*24 and see if it throws an error. If it does, you've got text.
Excel's TIMEVALUE function handles this. See Microsoft's TIMEVALUE docs for the full reference.
=TIMEVALUE(A2)*24
TIMEVALUE converts a text string into Excel's serial time format, a fraction between 0 and 1. Multiply by 24 and you've got decimal hours. It recognizes "7:45", "07:45", "7:45 AM", "19:30" and most other standard formats. If your data is consistently formatted, just use this.
But sometimes TIMEVALUE chokes on a weird format or returns a #VALUE! error. In that case, parse the text yourself with this longer formula:
=VALUE(LEFT(A2,FIND(":",A2)-1))+VALUE(MID(A2,FIND(":",A2)+1,2))/60
This finds the colon, grabs everything to the left (hours), grabs the two characters to the right (minutes), converts both to numbers, and combines them. It's ugly but it works on anything TIMEVALUE refuses to touch.
| Text in Cell A2 | Formula | Decimal Result |
|---|---|---|
| "7:45" | =TIMEVALUE(A2)*24 | 7.75 |
| "12:30" | =TIMEVALUE(A2)*24 | 12.5 |
| "00:15" | =TIMEVALUE(A2)*24 | 0.25 |
| "09:00" | =TIMEVALUE(A2)*24 | 9.0 |
| "23:45" | =TIMEVALUE(A2)*24 | 23.75 |
How Do You Display Decimal Hours as HH:MM Format in Excel?
Convert decimal hours (like 7.75) to display as 7:45 in a cell
Going the other direction: you have a decimal like 7.75 and you want the cell to show 7:45. Divide by 24 to convert back to Excel's time fraction, then apply a custom number format. The formula is simple. The formatting step is where people get tripped up.
=A2/24
Dividing by 24 gets you back to Excel's internal time fraction, but the cell will still display a number until you tell Excel to format it differently. Four steps:
- Select the cell or column that contains your
=A2/24formula results. - Press Ctrl+1 (Windows) or Cmd+1 (Mac) to open the Format Cells dialog.
- Click the Number tab, then scroll to the bottom of the Category list and select Custom.
- In the Type field, enter [h]:mm and click OK.
Don't skip the square brackets around [h]. Without them, Excel uses h:mm, which resets to zero at midnight. So 25.5 hours shows up as 1:30 instead of 25:30, which looks like a data error and will confuse everyone. The [h]:mm format keeps accumulating past 24, which is what you actually need for weekly totals.
Pro tip: [h]:mm vs h:mm
Use [h]:mm (with square brackets) any time hours might add up past 24. Without the brackets, 30 hours looks like 6:00. For timesheets, always use the bracketed format.
How Do You Sum Time in Excel and Get a Decimal Total?
Sum a week of HH:MM times and display the total in decimal
For a weekly timesheet you usually want two totals: one in HH:MM for readability, and one in decimal hours for the pay calculation. Set up both in your totals row. They pull from the same column.
=SUM(B2:B8)
Put =SUM(B2:B8) in your totals cell, then format it as [h]:mm (see Formula 3 for how). That gives you a readable "38:45" total. For the pay calculation, add a second totals cell next to it:
=SUM(B2:B8)*24
| Day | Hours Worked (B column, formatted h:mm) | Decimal Hours (=B*24) |
|---|---|---|
| Monday | 8:30 | 8.5 |
| Tuesday | 7:45 | 7.75 |
| Wednesday | 9:00 | 9.0 |
| Thursday | 8:15 | 8.25 |
| Friday | 7:30 | 7.5 |
| Total | =SUM(B2:B6) → 41:00 | =SUM(B2:B6)*24 → 41.0 |
How Do You Calculate Overtime Pay from Decimal Hours in Excel?
Calculate regular pay and overtime pay from decimal hours
Once you have decimal hours, pay calculations are just arithmetic. The U.S. federal overtime threshold is 40 hours per week at 1.5x the regular rate. The formulas below assume your total decimal hours are in cell A2 and your hourly rate is in cell C2.
=MIN(A2,40)
=MAX(A2-40,0)
MIN(A2,40) caps at 40, so anyone under that threshold just gets their actual count. MAX(A2-40,0) gives you the overtime portion and floors it at zero so you don't end up with negative overtime for a 38-hour week.
| Row | Description | Formula | Example (41 hrs @ $18/hr) |
|---|---|---|---|
| B2 | Regular hours | =MIN(A2,40) | 40 |
| B3 | Overtime hours | =MAX(A2-40,0) | 1 |
| D2 | Regular pay | =B2*C2 | $720.00 |
| D3 | Overtime pay | =B3*C2*1.5 | $27.00 |
| D4 | Total gross pay | =D2+D3 | $747.00 |
Want a deeper payroll guide?
For FLSA overtime rules, salaried vs. hourly employee considerations, and state-specific overtime thresholds, see our complete Payroll Hours Guide.
How Do You Build a Complete Time Tracking Spreadsheet in Excel?
Here's how to put it all together into a working 5-column weekly timesheet. Open a blank spreadsheet and set these headers in row 1:
| Column A | Column B | Column C | Column D | Column E |
|---|---|---|---|---|
| Date | Start Time | End Time | Duration | Decimal Hours |
Column A takes your dates in whatever format Excel recognizes automatically. Columns B and C get your start and end times. Type "8:30" and press Enter; Excel should auto-format the cell as a time value. If it shows a decimal instead, select the column and format it as h:mm via Format Cells (Ctrl+1).
Column D is your duration. The formula is just =C2-B2. That gives the elapsed time as an Excel time fraction. Format column D as [h]:mm so it displays cleanly as hours and minutes.
Column E is your decimal hours: =D2*24, formatted as Number with 2 decimal places. This is the number you multiply by an hourly rate. Most payroll systems and U.S. labor law calculations want time expressed this way, where 30 minutes = 0.5 and 45 minutes = 0.75. Copy both D and E formulas down for each row in the week.
In your totals row (say row 9), put =SUM(D2:D8) formatted as [h]:mm for the display total, and =SUM(E2:E8) for the decimal total. If you want gross pay, add a rate cell somewhere (G2 works) and use =E9*G2. For overtime, plug E9 into the Formula 5 set above. Freeze the header row under View, then save the file as a template (.xltx) so you can reuse the structure each week without overwriting your data. Add a conditional formatting rule to flag any day over 10 hours. It catches typos before they hit payroll.
Do These Time-to-Decimal Formulas Work in Google Sheets?
Yes, all five formulas work in Google Sheets without changes. The time model is identical: times are stored as fractions of a day, so =A2*24, =TIMEVALUE(A2)*24, =SUM(B2:B8)*24, and the overtime formulas all transfer directly.
Sheets is more aggressive about auto-detecting time values when you paste from outside sources. Text strings that need TIMEVALUE in Excel might just work with =A2*24 in Sheets. Test on your actual data and see. To apply the [h]:mm custom format in Sheets, go to Format, then Number, then Custom date and time, and type [h]:mm directly.
Quick Formula Reference Table
All five formulas plus a couple of edge cases you'll eventually run into. The last two rows (hours in separate cells, and HHMMSS strings with seconds) aren't covered in the main sections but come up often enough to be worth having.
| Scenario | Formula | Notes |
|---|---|---|
| Excel time value → decimal hours | =A2*24 |
Most common. Works in Google Sheets too. |
| Explicit HOUR + MINUTE extraction | =(HOUR(A2)+MINUTE(A2)/60) |
More transparent version of Formula 1. |
| Text string "h:mm" → decimal | =TIMEVALUE(A2)*24 |
For imported/pasted text times. |
| Text string (manual parse) | =VALUE(LEFT(A2,FIND(":",A2)-1))+VALUE(MID(A2,FIND(":",A2)+1,2))/60 |
Fallback when TIMEVALUE fails. |
| Decimal hours → HH:MM display | =A2/24 then format as [h]:mm |
Use [h]:mm not h:mm for >24h totals. |
| Weekly timesheet total (decimal) | =SUM(B2:B8)*24 |
Sum the time column, multiply by 24. |
| Hours + minutes in separate cells | =A2+(B2/60) |
A2 = whole hours, B2 = minutes. |
| HHMMSS text string ("07:45:30") → decimal | =HOUR(TIMEVALUE(A2))+(MINUTE(TIMEVALUE(A2))/60)+(SECOND(TIMEVALUE(A2))/3600) |
Includes seconds precision. |
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Try Harvest Free → Affiliate link — we may earn a commissionFrequently Asked Questions
=A2*24 in a new cell. Don't use the 0.354 number directly in any math. That's a 24x error waiting to happen.
[h]:mm (with square brackets). Without them, Excel treats the total like a clock: 25 hours becomes 1:00, because the clock "wraps" past midnight. The brackets tell Excel to keep counting. Format Cells, then Custom, then type [h]:mm.
TIMEVALUE in Excel might just work with =A2*24 in Sheets. Test it and see. If not, =TIMEVALUE(A2)*24 is right there as a fallback.
=A2/60. That gives you 0.75. If you have a full time value in h:mm format and only want the minutes piece, use =MINUTE(A2)/60. But if you want the full decimal hours from h:mm, stick with =A2*24. It handles both the hours and minutes in one shot.
=SUM(D2:D8)*24 where column D holds your daily durations. Put that number somewhere (E10 works). Multiply by your rate: =E10*G2 if G2 is your hourly rate. For overtime, split it: regular hours are =MIN(E10,40), overtime is =MAX(E10-40,0), then =regular*G2 + overtime*G2*1.5. Run the numbers manually on a test employee first before rolling it out.