How it’s calculated
- Person-hours
- equals Attendees × (Minutes ÷ 60)
- Cost per Meeting
- equals Person-hours × Average Hourly Cost
- Annual Cost
- equals Cost per Meeting × Meetings per Week × Weeks per Year
Worked example
A weekly 45-minute status meeting has 9 attendees whose loaded cost averages $62 an hour. The team works about 48 weeks a year.
- Person-hours = 9 × 0.75 = 6.75 hours
- Cost per meeting = 6.75 × $62 = $418.50
- Annual cost = $418.50 × 48 = $20,088
Cutting it to 30 minutes with the 5 people who need to be there brings the annual cost to $7,440.
Estimating hourly cost
If you know salaries but not hourly costs, divide each annual salary by 2,080 hours and multiply by about 1.25–1.4 to approximate taxes and benefits. For a more precise figure, use the Employee Cost Calculator.
Assumptions and limitations
- This measures the cost of attendees’ time only, not the value the meeting creates. Some meetings are worth far more than they cost.
- For a realistic figure, use loaded hourly cost (pay plus payroll taxes, benefits and overhead). The Employee Cost Calculator can estimate it.
- Preparation time, travel and the time it takes to refocus afterward are not included, so the true cost is usually higher.
- Attendees are assumed to share the same average hourly cost.
Results are estimates for information only and are not financial, tax or legal advice. See our disclaimer.