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💰 Financial & Currency

A Weekly Hour With Eight People Costs About 25,000 a Year

Nobody invoices for a meeting, so nobody prices one. Eight people at 60 an hour is 480 an hour — and 480 a week is a salary.

This meeting

Per year

 

Person-hours

Cost per minute

Who costs what

What changing it would save, per year

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How the calculation works

Eight people, one hour, 60 an hour each one meeting 480 a month of them 2,080 a year of them 24,960 That is a salary. Nobody signs off on it, because nobody ever sees it as one number.

How to Use This Tool

List who attends with their salaries, set the length, and say whether it recurs. The annual figure is the one worth looking at.

Salary is not what a person costs

An employer pays more than the salary: payroll taxes, pension or retirement contributions, insurance, equipment, software licences and space. The total is typically 25–40% above salary, which is why the overhead field defaults to 30%.

A 75,000 salary over 2,080 paid hours is 36.06 an hour. Fully loaded at 30% it is 46.88. Costing meetings at the salary rate understates them by roughly a third, consistently and in the flattering direction.

2,080 hours is the standard convention — 40 hours × 52 weeks — and it counts paid leave and public holidays as working time. Using actual worked hours instead would raise the hourly figure further.

Recurrence is where the money is

A single meeting rarely looks expensive. Eight people for an hour at 60 each is 480, which is unremarkable next to any other line in a budget.

The same meeting every week is 24,960 a year — a salary, spent without a decision, a budget line, or anyone able to point at it. A daily 15-minute stand-up with the same eight people is 30,000.

This is the argument for auditing recurring meetings rather than individual ones. A one-off workshop that costs 2,000 was at least a choice; a standing invitation that costs 25,000 usually was not.

Weekly, eight people, one hour — 24,960 a year as it is 24,960 45 minutes instead 18,720 45 minutes, five people 11,700 Both levers are multiplicative, so using them together compounds.
Sending notes to the three people who only needed to know is the cheapest change available.

What the number is good for, and what it is not

It is a useful prompt and a bad weapon.

Used well, it makes an invisible cost visible so it can be compared against alternatives: a written update, a smaller group, a shorter slot, or a decision made by whoever owns it. "This recurring meeting costs 25,000 a year, is it worth that" is a reasonable question.

Used badly, it implies that meetings are waste. They are not — a decision made in twenty minutes of conversation can be worth far more than twenty minutes of anyone's salary, and the alternative is often a week of asynchronous confusion that costs more. The calculation cannot see value, only cost.

The costs this cannot count

  • Interruption. A meeting in the middle of a morning does not just consume its own hour; it fragments the time either side, and focused work does not resume instantly.
  • Preparation and follow-up. Reading materials, writing notes, chasing actions. The optional 15 minutes here is a placeholder rather than a measurement.
  • Attendance that is not attention. People in a meeting doing other work are being paid for both and doing neither well.

All of these push the real figure up, so treat the output as a floor.

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Frequently Asked Questions

How do you calculate the cost of a meeting?
Add up each attendee's fully loaded hourly cost and multiply by the duration. Eight people at 60 an hour for one hour is 480. Multiply by how often it recurs — the same meeting weekly is 24,960 a year.
Should I use salary or total employment cost?
Total cost. Payroll taxes, benefits, equipment and space typically add 25–40% on top of salary, so a 75,000 salary is about 36.06 an hour but around 46.88 fully loaded. Using salary alone understates every meeting by roughly a third.
Why 2,080 hours a year?
It is 40 hours times 52 weeks, the standard convention for converting a salary to an hourly rate. It treats paid leave and public holidays as working time, so it is slightly conservative — using actual worked hours would produce a higher hourly cost.
Does a shorter meeting really save that much?
Proportionally, yes, and it compounds with attendance. Cutting a weekly eight-person hour to 45 minutes saves 6,240 a year; cutting it to 45 minutes with five people saves 13,260. Both levers multiply.
Are meetings a waste of money?
No — the calculation shows cost, not value, and a decision reached in twenty minutes of conversation can be worth far more than the time it consumes. The figure is useful for comparing a meeting against a written update or a smaller group, not for arguing that meetings are bad.
What costs does this miss?
Interruption, mainly. An hour in the middle of a morning fragments the time around it, and focused work does not resume instantly. Preparation, follow-up and people half-attending while doing other work all add too, so treat the output as a floor.

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