What this calculator does
Cost per minute is the total divided by the minutes, and the reason to calculate it is comparison. Two offers priced differently, say $24 for 40 minutes against $30 for an hour, only become comparable once both are expressed as a rate.
The hourly figure is usually the more intuitive of the two. $24 for 40 minutes is 60 cents a minute, which is $36 an hour; $30 for a full hour is $30. The second is cheaper despite the larger headline price, which is exactly the kind of thing a per-minute rate makes visible.
The formula
The total cost is divided by the total minutes to give a cost per minute, and multiplied by sixty for the equivalent hourly rate. It is a straight division, so the only thing to be careful about is that the cost and the time cover the same thing: a session fee that includes setup time should be divided by the total booked, not the usable portion.
| Term | Meaning |
|---|---|
| Rate per minute | The total divided by the minutes, the common basis for comparison. |
| Equivalent hourly rate | The same rate expressed per hour, which is usually easier to judge. |
| Metered time | Any service billed by duration rather than by outcome. |
| Minimum charge | A floor that many services apply, which makes the effective rate higher for short sessions. |
The inputs explained
| Field | What to enter |
|---|---|
| Total cost ($) | The total amount paid. |
| Total time (min) | The total time in minutes that the cost covers. Include any time you are billed for but do not use. |
When to use it
Comparing two quotes
Services priced in different blocks are not comparable until both are reduced to a common rate.
Checking a phone or data bill
Converting the total back to a per-minute figure shows what you actually paid, which often differs from the advertised rate once fees are included.
Pricing your own time
Working backwards from what you want to earn per hour gives the per-minute figure to quote for short jobs.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How does the rate change with session length?
The same total cost spread across different durations.
| Total time | Cost per minute | Cost per hour (at this rate) | Total cost |
|---|---|---|---|
| 15 min | $1.60 | $96.00 | $24.00 |
| 30 min | $0.80 | $48.00 | $24.00 |
| 45 min | $0.53 | $32.00 | $24.00 |
| 60 min | $0.40 | $24.00 | $24.00 |
Questions
How do I calculate cost per minute?
Divide the total cost by the number of minutes. For $24 over 40 minutes that is $0.60 a minute. Multiply by sixty for the hourly equivalent, which here is $36, and that is usually the easier figure to compare against anything else.
Should I include time I did not use?
Yes, if you were billed for it. A minimum charge or a booked block that ran short still costs what it costs, and the effective rate is what you paid divided by what you were charged for. Using only the productive minutes flatters the comparison.
Why does a shorter session cost more per minute?
Usually because of a fixed component: setup, travel, administration or a minimum charge that does not shrink with the booking. Where the whole price is fixed, as in the table above, the per-minute rate is simply the total spread over fewer minutes.
How do I convert a per-hour rate to per-minute?
Divide by sixty. A $90 hourly rate is $1.50 a minute. Going the other way, multiply by sixty. Both directions are useful, since services quote in whichever unit makes their price look smaller.
For the cost of a meeting in salary terms, see the meeting cost calculator. For running a vehicle, see the cost per mile calculator.