Enter the total cost and total amount of time in hours, minutes, and seconds into the calculator to determine the cost per minute.
- All Business Calculators
- Bill Rate Calculator
- Cost Per Hour Calculator
- Cost Per Second Calculator
- Hourly Rate Calculator
- Cost Per Day Calculator
- Minutes to Money Calculator
Cost Per Minute Fromula
The following formula is used to calculate the total cost per minute of time.
CPM = TC / (H*60+M+S/60)
- Where CPM is the cost per minute ($/minute)
- TC is the total cost ($)
- 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?
A cost per minute is a financial term used to describe the total cost a project or goal takes per minute of time.
In general, cost per minute is used to define cost per unit time for jobs that are usually priced on an hourly basis but often take less than an hour of time.
For example, if a lawyer is hired for a job that costs $200 per hour but only averages 15 minutes of work on the case per day, it helps to understand the cost per minute to better understand the total cost.
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 total amount of time it took for the project to be completed. For this problem, the total time was 2 hours, 10 minutes and 30 seconds.
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?
Yes, the cost per minute formula can be applied to a wide range of projects or tasks, especially those billed on an hourly basis. However, it's most useful for projects where the total time spent is critical to understanding the cost efficiency or for comparing the cost-effectiveness of different projects or services.
How can calculating cost per minute help in budgeting and financial planning?
Calculating the cost per minute can provide detailed insights into the financial aspects of a project, allowing for more accurate budgeting and financial planning. It helps in identifying areas where costs can be reduced, optimizing resource allocation, and improving the overall cost-efficiency of operations or services.
