How meeting cost is calculated
Cost = attendees × hourly cost per person × hours. Annual salaries are converted to hourly by dividing by 2,080 (40 hours × 52 weeks). Employers also pay benefits and payroll taxes, which the US Bureau of Labor Statistics puts at roughly 30% on top of wages—hence the default 1.3 overhead multiplier.
Example: 6 people earning $85,000 in a 1-hour meeting: 85,000 × 1.3 ÷ 2,080 = $53.13 per person-hour → $318.75. Weekly, that's about $16,575 a year.
Ways to cut meeting cost
- Default to 25 or 50 minutes instead of 30 or 60.
- Invite only decision makers; send notes to everyone else.
- Replace status meetings with a written update.
- Review recurring meetings every quarter.