How to Calculate the Cost of a Meeting
Every meeting has a cost — the sum of each attendee's hourly wage multiplied by the meeting duration. A 1-hour meeting with 8 senior engineers earning $120,000/year costs over $460 in direct salary cost alone, not counting opportunity cost and context-switching overhead. Making meeting costs visible helps organisations decide whether a meeting is worth holding and whether all invited attendees are truly necessary.
Last updated: March 31, 2026
The Formula
Hourly Cost per Person = Annual Salary / 2,080 Total Meeting Cost = Σ(Hourly Cost per Attendee) × Duration (hours) With overhead multiplier (benefits, office costs ≈ 1.3–1.5×): True Cost = Total Salary Cost × Overhead Multiplier
Variable Definitions
| Symbol | Name | Description |
|---|---|---|
| Duration | Meeting Length | Total meeting time in hours (a 90-minute meeting = 1.5 hours) |
| Attendees | Number of Attendees | Each additional attendee multiplies the cost linearly |
| Overhead | Overhead Multiplier | Factor accounting for benefits, office space, and other employer costs beyond base salary — typically 1.3–1.5× |
Step-by-Step Example
A weekly 1-hour strategy meeting with 6 attendees: 2 at $120k/year, 2 at $90k/year, 2 at $70k/year.
Given
Solution
- 1Sum of hourly rates:
(2×57.69) + (2×43.27) + (2×33.65) = $269.22/hour - 2Meeting cost (salary only):
$269.22 × 1 hr = $269.22 - 3With overhead (×1.4):
$269.22 × 1.4 = $377 - 4Annual cost (52 weeks):
$377 × 52 = $19,604/year
This recurring weekly meeting costs ~$377 per session and ~$19,600 per year in fully-loaded staff costs.
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Common Mistakes to Avoid
Using salary without overhead — employer costs are 30–50% above base salary; the true hourly cost per employee is higher than the salary formula suggests.
Inviting people out of courtesy — every additional attendee adds directly to cost. Invite only those who are truly necessary.
Not accounting for prep time — a 1-hour meeting with 30 minutes of pre-reading per attendee costs 1.5 hours per person, not 1.
Treating all meetings as equally necessary — status update meetings with 10 people are often better replaced by a written async update that costs a fraction of the time.