Calculate average cost per minute from a matched total cost and duration, or solve for total cost or time at a constant rate. Use minutes, hours or seconds; currency selection labels amounts without converting exchange rates.

Enter the total cost and positive duration for the same service or project.

Use the full cost for the same scope and period as the duration.

Decimal duration: 1.5 minutes = 90 seconds, not 1 minute 5 seconds.

Labels amounts only; no exchange-rate conversion. Use the same currency for all amounts.

Cost Per Minute Formula

The following formula gives average cost per minute. Total cost and duration must cover the same scope and period, and total duration must be positive.

CPM = TC / (H × 60 + M + S / 60)
  • Where CPM is the average cost per minute (currency units/minute)
  • TC is the total cost in the same currency
  • H is the number of hours
  • M is the number of minutes
  • S is the number of seconds.

In some cases, calculating a cost per minute is as simple as dividing the cost per hour by 60.

To calculate the cost per minute, divide the total cost by the total time in minutes.

Cost Per Minute Definition

What is the cost per minute?

Average cost per minute is total cost divided by elapsed minutes for the same project or service. It describes that cost and time scope; it does not by itself determine a provider’s billing rate or marginal price.

An hourly rate can be expressed per minute by dividing by 60. Multiplying a rate by a different duration assumes the same constant rate; fixed fees, tiers, minimum charges and billing increments can make an actual bill differ.

For an illustrative constant rate of $200 per hour, the equivalent is about $3.3333 per minute and 15 minutes corresponds to $50. Actual billing terms, included costs and charging increments must be considered separately.

Example Problem

How to calculate cost per minute?

The following example problem will outline the steps required in order to determine the total cost per minute.

First, determine the total cost of the project. In this example problem, the total cost of the project is found to be $10,000.00.

Next, determine the full duration. Here it is 2 hours, 10 minutes and 30 seconds: 2 × 60 + 10 + 30/60 = 130.5 minutes. Enter 130.5 with Minutes selected in the calculator.

Finally, calculate the cost per minute using the formula above:

CPM = TC / (H*60+M+S/60)

CPM = $10,000 / (2*60+10+30/60)

CPM = $76.63/minute

FAQ

What factors can affect the cost per minute calculation?

Several factors can affect the cost per minute calculation, including unexpected delays, additional resources needed, or changes in the scope of work. Fluctuations in hourly rates or material costs can also impact the overall cost per minute.

Can the cost per minute formula be used for any type of project?

The ratio can describe any matched total cost and positive duration. Comparisons require consistent cost scope, units and time periods. An observed average does not establish the charges for a future project or service.

How can calculating cost per minute help in budgeting and financial planning?

Average cost per minute can help compare projects with consistent cost scope and duration definitions. Future estimates require an appropriate rate and any fixed fees or charging rules; the ratio alone does not guarantee a bill or identify which costs can be reduced.