How to use the Meeting Cost Calculator
Enter the number of people attending the meeting and their average annual salary. Then enter the meeting duration in hours and minutes. The calculator converts the salaries into hourly labor costs and estimates how much the meeting costs based on everyone's time.
If the meeting has other direct expenses, such as a meeting room, catering, printed materials, or paid conferencing services, enter those under Additional Cost. This amount is treated as a cost per meeting, so it is also included when calculating the annual cost of a recurring meeting.
For recurring meetings, select weekly, every 2 weeks, or once per month to estimate the yearly cost.
How meeting cost is calculated
The calculator first converts annual salary into an estimated hourly salary using a standard 2,080-hour work year:
Hourly Rate = Annual Salary ÷ 2,080 If you need to convert between hourly pay and an annual salary separately, you can also use the Hourly to Salary Converter.
The hourly rate is then multiplied by the number of attendees and the length of the meeting:
Meeting Cost = Hourly Rate × Attendees × Duration + Additional Cost The calculator also divides the total meeting cost by the number of attendees to show the estimated cost per attendee.
Meeting cost example
Suppose 8 employees attend a one-hour meeting and each earns an average salary of $104,000 per year.
- Annual salary per attendee: $104,000
- Hourly rate per attendee: $50
- Number of attendees: 8
- Meeting duration: 1 hour
- Additional meeting cost: $0
The combined hourly cost of the attendees is $400. Therefore, the one-hour meeting costs approximately $400 in employee time, or $50 per attendee.
If the same meeting happens every week, the estimated annual employee-time cost is $20,800.
How much does a recurring meeting cost?
Recurring meetings can have a surprisingly large annual cost. A meeting that looks inexpensive when viewed one session at a time can represent thousands of dollars of employee time over the course of a year.
| Meeting Frequency | Meetings per Year | Annual Cost at $400/Meeting |
|---|---|---|
| Weekly | 52 | $20,800 |
| Every 2 Weeks | 26 | $10,400 |
| Once per month | 12 | $4,800 |
These figures assume the meeting costs $400 each time and that the additional cost, if any, is incurred for every meeting.
Salary is not the full cost of an employee
This calculator uses base annual salary to estimate the value of employee time. In practice, the employer's total cost can be higher because of benefits, payroll taxes, insurance, equipment, office space, and other overhead.
This means the calculator should be viewed as an estimate of the salary cost of the time spent in the meeting, rather than a complete measure of the employer's total labor cost.
If you are analyzing the broader operating costs of a company, a Business Expenses Calculator can help estimate other business costs, while a Business Budget Calculator can be used to plan and track recurring expenses.
When is a meeting worth the cost?
Meeting cost is only one side of the equation. A $1,000 meeting may be worthwhile if it helps the company avoid a $20,000 mistake, close an important deal, solve a major operational problem, or make a decision that saves substantial time or money.
On the other hand, a recurring meeting with a high cost and little measurable outcome may be worth shortening, reducing its frequency, or replacing with an email, document, or asynchronous update.
When evaluating a meeting, consider:
- How many people actually need to attend?
- Could some attendees receive an update instead?
- Could the meeting be shorter?
- Does it produce a decision, deliverable, or measurable result?
- How often does it really need to occur?
- What is the annual cost of keeping it on the calendar?
Meeting costs and business profitability
Employee time is an operating cost, even when there is no separate invoice for a meeting. For a business with many employees, reducing unnecessary meeting time can reduce the amount of paid time spent on activities that do not directly contribute to revenue or useful work.
If you are looking at meeting costs as part of a broader profitability analysis, use the Profit Margin Calculator to see how revenue and costs affect profit margin.
You can also use the Break-even Calculator to estimate how much revenue is needed to cover a business's fixed and variable costs.
Frequently asked questions
Why does the calculator use 2,080 hours per year?
2,080 hours represents a standard full-time work year: 40 hours per week × 52 weeks. It does not subtract holidays, vacation, sick days, or other time away from work, so it is a useful standard assumption rather than an exact measure of productive working hours.
Does the meeting cost include benefits and overhead?
No. The calculation is based on base annual salary. Benefits, payroll taxes, insurance, equipment, office costs, and other overhead can make the employer's actual cost of employee time higher.
What should I include in "additional cost"?
Include direct costs that apply to each meeting, such as a rented meeting room, catering, printed materials, or meeting-specific services. The amount is treated as a cost per meeting and is multiplied by the selected recurrence when calculating annual cost.
What if employees have different salaries?
This calculator uses an average salary for all attendees, so it provides an estimate when employees have different salaries. For a more precise calculation, you would need to calculate the hourly cost of each attendee separately and add those costs together.
Does the calculator include the cost of the meeting room?
It can. Enter the meeting room cost in the Additional Cost field if the room has a direct cost for each meeting. The same applies to catering, printed materials, or other meeting-specific expenses.
Is the annual recurring cost exact?
No. The annual figure is an estimate based on 52 weekly, 26 biweekly, or 12 monthly meetings per year. Actual calendar schedules may differ because of holidays, vacations, canceled meetings, and changes in meeting frequency.