How to Calculate the Real Cost of a Meeting
Meetings feel free because no invoice arrives, but every attendee is being paid to sit there. Multiply a few salaries by an hour and the number is often uncomfortable. Calculating it is the fastest way to make a team protective of its own time.
Why meetings have a real cost
Everyone in the room is on the clock. Their time has a value set by their salary, plus the overhead an employer pays on top (benefits, taxes, equipment, space). A meeting consumes that value whether or not anything useful comes out of it.
The formula
An attendee's hourly cost is their annual salary divided by working hours (about 2,080 a year), multiplied by an overhead factor to capture the true employer cost.
Worked example
Eight people, average salary 70,000, one hour, overhead factor 1.3. Hourly cost per person = 70,000 / 2,080 x 1.3 = about 43.75. For eight people for one hour: 8 x 43.75 = 350. A recurring weekly version of that meeting costs about 18,200 a year.
What the overhead factor covers
Salary alone understates the cost. Employers also pay payroll taxes, benefits, equipment, software, and office space. An overhead factor of 1.25 to 1.4 is a common rough estimate of total cost relative to base salary, so a 70,000 salary really costs the business closer to 90,000.
How the number changes behaviour
Once a team sees that a standing weekly meeting costs five figures a year, the questions change: does everyone need to attend, could it be shorter, could it be an email or a shared document? You do not have to cancel meetings - just make sure the value created beats the cost on the clock.
Use the Meeting Cost Calculator
The Meeting Cost Calculator totals the cost from the number of attendees, their average salary, the duration, and an overhead multiplier, and shows the cost per attendee, per minute, and the annual cost if the meeting repeats. Share the number before booking the next recurring slot.
Frequently asked questions
Should I include my own time?
Yes. Every attendee counts, including the organiser and senior staff, whose time is usually the most expensive. Leaving people out understates the cost and defeats the purpose of the exercise.
Is this an exact figure?
It is an estimate, not an accounting number. Salaries are averaged and overhead is approximate. The value is in the order of magnitude: it reveals whether a meeting costs tens, hundreds, or thousands, which is enough to change decisions.
Use the tools
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