How to create a timesheet in Excel: step by step, with formulas

Step-by-step instructions for building an employee timesheet in Excel or Google Sheets: setting up columns, entering times, calculating hours with breaks and overnight shifts, converting to decimal hours, weekly totals, overtime and pay formulas, protecting the sheet, plus the limits of spreadsheets and when to switch to a time tracking app.

In shortTo create a timesheet in Excel, set up columns for date, start time, end time, unpaid break and total hours. Calculate daily hours with a formula such as =(C2-B2-D2)*24 to get decimal hours, or use =MOD(C2-B2,1)*24 for shifts that cross midnight. Add a weekly total with SUM, calculate overtime with =MAX(0,total-40) and pay with regular hours times rate plus overtime hours times rate times 1.5. Format time cells correctly, protect formula cells and keep a copy of each week’s sheet. Spreadsheets work for a few employees, but they depend on honest manual entries and are easy to break, so growing teams usually move to a time tracking app.

When an Excel timesheet makes sense

A spreadsheet timesheet is free, flexible and familiar. It can work well for a very small team, a single employee or a short project. Its weaknesses show up as you grow: employees write times from memory, formulas get overwritten, versions multiply in email and there is no proof of when someone actually started work. Still, a well-built sheet is far better than notes on paper, and building one is a good way to understand how hours and overtime are calculated.

If you would rather start from a ready-made file, see the free timesheet template, the daily timesheet template and the biweekly timesheet template.

Step 1: Set up the header

At the top of the sheet, add fields for employee name, employee ID if you use one, department or job, pay rate and the week start date. Leave a few blank rows between the header and the table so the layout is easy to read and print.

Step 2: Create the columns

Suggested columns
Column Heading Example entry
A Date 3/2/2026
B Start time 8:00 AM
C End time 4:30 PM
D Unpaid break 0:30
E Total hours (decimal) Formula
F Job or notes Site 12

Add one row for each day of the week, Monday through Sunday or whatever day your workweek starts. Your workweek is a fixed, recurring seven-day period you define for overtime purposes.

Step 3: Format time cells

Select columns B and C and format them as Time (for example, 1:30 PM). Format column D as a duration using the custom format h:mm. Format column E as Number with two decimal places. Enter times with AM or PM, or use 24-hour time, to avoid confusion.

Step 4: Calculate daily hours

Excel stores times as fractions of a day, so subtracting the start time from the end time gives a fraction of 24 hours. Multiply by 24 to convert to decimal hours, which payroll needs.

Daily hours formulas
Situation Formula in E2 Result for example
Same-day shift, no break =(C2-B2)*24 8:00 AM to 4:30 PM = 8.50
Same-day shift with unpaid break =(C2-B2-D2)*24 With 0:30 break = 8.00
Shift crosses midnight =MOD(C2-B2,1)*24 10:00 PM to 6:00 AM = 8.00
Overnight with unpaid break =(MOD(C2-B2,1)-D2)*24 With 0:30 break = 7.50

Use the MOD version for every row if any employee might work past midnight. It handles both normal and overnight shifts. Copy the formula down for every day of the week.

If you want hours shown as hours and minutes instead of decimals, use =C2-B2-D2 and format the cell with the custom format [h]:mm. The square brackets let totals exceed 24 hours. For payroll, decimal hours are usually easier. The decimal hours converter explains the conversion.

Step 5: Weekly total

Below the last day, add a total row. In E9 (if days are rows 2 to 8), enter =SUM(E2:E8). This gives total decimal hours for the week.

Step 6: Overtime

Under the federal Fair Labor Standards Act, non-exempt employees generally must be paid at least one and a half times their regular rate for hours over 40 in a workweek. Some states also require daily overtime, such as California for hours over 8 in a day.

Overtime formulas
Cell Label Formula
E10 Regular hours =MIN(40,E9)
E11 Overtime hours =MAX(0,E9-40)

For daily overtime states, add a column for daily overtime with a formula such as =MAX(0,E2-8) and adjust weekly totals so hours are not counted twice. Daily overtime rules can be complicated, including double time in some states, so check the rules carefully. See daily overtime rules and FLSA overtime rules.

Step 7: Pay

If the hourly rate is in cell B4 (from the header), calculate gross pay:

Pay formulas
Cell Label Formula
E12 Regular pay =E10*$B$4
E13 Overtime pay =E11*$B$4*1.5
E14 Gross pay =E12+E13
Worked example (fictional): An employee earns $20 an hour and works 44.5 hours in a week. Regular hours = 40, overtime hours = 4.5. Regular pay = 40 × $20 = $800. Overtime pay = 4.5 × $20 × 1.5 = $135. Gross pay = $935. Note that the regular rate for overtime can include certain bonuses and shift differentials, which a simple formula like this does not capture.

See how to calculate overtime pay and the overtime calculator.

Step 8: Add signatures and approval

At the bottom, add lines for employee signature and date, and supervisor approval and date. If you email timesheets, ask for a typed confirmation or use a signed PDF. Approval shows the hours were reviewed. See timesheet approval.

Step 9: Protect the formulas

  1. Select the cells employees should fill in (dates, times, breaks, notes).
  2. Right-click, choose Format Cells, open the Protection tab and uncheck Locked.
  3. Go to Review and choose Protect Sheet, optionally with a password.
  4. Now employees can enter times, but formulas and the pay rate cannot be changed accidentally.

Also add data validation to time cells so only valid times can be entered.

Step 10: Save and keep records

Save the file as a template, then make a new copy for each employee and week, named consistently, such as Lastname_2026-03-02.xlsx. Federal rules generally require keeping payroll records for at least three years and time cards for at least two, and some states require longer. Store copies securely. See time record retention requirements.

Google Sheets differences

The same formulas work in Google Sheets, including MOD for overnight shifts and [h]:mm for duration formats (under Format, Number, Custom date and time or Custom number format). Sheets makes sharing easier, but be careful with edit permissions so employees can only change their own entries.

Common spreadsheet mistakes

Limits of Excel timesheets

Spreadsheet vs time tracking app
Issue Spreadsheet Time tracking app
Accuracy of start and end times Typed from memory Recorded at clock-in
Location proof None GPS stamp or approved locations
Formulas Can break Built in
Breaks and overtime alerts Manual Automatic alerts
Approvals and corrections Email back and forth Built-in requests with audit trail
Multiple employees Many files One system
Payroll export Manual copy Payroll-ready reports

A spreadsheet works for a handful of employees. Once you are managing many people, multiple locations or field crews, the time spent collecting, checking and fixing spreadsheets usually costs more than an app. See how to set up a time clock for a small business.

Example (fictional)

A small bakery with six employees built an Excel timesheet with MOD formulas for early morning shifts, protected cells and weekly overtime. It worked well until the bakery opened a second location and hired 14 more people. The owner spent most of Monday collecting files, fixing broken formulas and chasing missing signatures. After moving to a mobile time clock, employees clocked in at each location and the owner exported payroll-ready reports in minutes.

How EZTime helps

EZTime replaces spreadsheet timesheets with automatic time tracking. Employees clock in on the mobile app, web, tablet kiosk or NFC tag, hours and overtime are calculated automatically, labor rule alerts flag overtime thresholds and forgotten clock-outs, timecard corrections go through manager approval with an audit trail and reports export to PDF and Excel. A 14-day trial needs no credit card.

Frequently asked questions

How do I calculate hours worked in Excel?

Subtract the start time from the end time and multiply by 24, for example =(C2-B2)*24. Subtract unpaid breaks before multiplying.

How do I calculate overnight shift hours in Excel?

Use =MOD(C2-B2,1)*24 so shifts that cross midnight give a positive result.

How do I calculate overtime in Excel?

With weekly total hours in E9, use =MAX(0,E9-40) for overtime hours and =MIN(40,E9) for regular hours, then multiply overtime hours by the rate times 1.5.

Why does my Excel timesheet show the wrong total over 24 hours?

Use the custom format [h]:mm for time totals, or convert to decimal hours by multiplying by 24.

Is an Excel timesheet legally acceptable?

Federal rules require accurate records of hours worked but do not mandate a particular format. Spreadsheets can work if accurate and retained, but they rely on manual entries.

Where to go next

Related reading

Skip the spreadsheet

EZTime records clock-ins on any phone, calculates hours and overtime automatically and exports payroll-ready reports.

Disclaimer: This guide is general information, not legal or payroll advice. Overtime, rounding, break and recordkeeping rules vary by state. Check current federal and state requirements before relying on a spreadsheet for payroll.