Meeting Cost Calculator

The meeting cost is calculated as: Cost = (Sum of each attendee's loaded hourly rate) × (Meeting duration in hours). The loaded hourly rate includes salary, benefits, overhead, and any other employment costs, typically 1.3 to 2.0 times the base hourly wage. For example, if an attendee earns $50/hour base, their loaded rate might be $80/hour. Sum these rates for all attendees, then multiply by the meeting length in hours (e.g., 1.5 hours). For the annual cost of a weekly meeting, multiply the single meeting cost by 52 (weeks per year). This calculation captures the direct labor opportunity cost—the value of time that could be spent on other productive work. It does not include indirect costs like lost creativity or delayed decisions, but provides a concrete lower bound. The formula is mathematically exact: Total Cost = Σ(LoadedRate_i) × Duration_hours × (52 if weekly, else 1).

A good meeting cost number is relative to the value generated. For most teams, a single meeting costing under $500 is low impact; $500-$2,000 is moderate; over $2,000 warrants scrutiny. Annual weekly costs above $50,000 often signal the need for asynchronous alternatives. Key principle: if the meeting cost exceeds the potential benefit (e.g., a decision worth $1,000), it's inefficient. Avoid using loaded rates over 2.0 unless you have specific data; 1.3-1.6 is typical for salaried employees. Remember, this metric is a lower bound—it excludes lost momentum and innovation. Use it as a conversation starter, not a strict rule. Compare against the meeting's purpose: status updates can often be emails, while brainstorming may justify higher costs.

Common mistakes include using base salary instead of loaded rate, which underestimates cost by 30-50%. Forgetting to include all attendees, especially silent observers or support staff, skews results. Another error is using annual salary divided by 2000 hours (a rough estimate) instead of 2080 (standard full-time hours), leading to a 4% miscalculation. Edge cases: meetings with external contractors whose rates are already fully loaded should not be multiplied again. Also, weekly meetings that skip holidays or have variable attendance should use actual meeting count (e.g., 48 weeks). Finally, confusing meeting cost with meeting value—a high cost can be justified if it drives substantial revenue or saves time elsewhere.

Loaded hourly rate

The total cost of an employee per hour, including salary, benefits, taxes, and overhead, typically 1.3 to 2.0 times the base wage.

Opportunity cost

The value of the best alternative use of time spent in a meeting, such as productive work or revenue generation.

Base hourly wage

An employee's annual salary divided by 2,080 standard working hours, before any load factors.

Meeting duration

The total time a meeting lasts, measured in hours or fractions thereof, from start to end.