To convert an Excel time to money based on an hourly rate, first convert the time to a decimal value. In the formula shown, the formula in D5, copied down the table, is:
Excel times are stored as fractional parts of one day. For example, 12 hours is equal to 0.5, and 18 hours is equal to 0.75. This means if you try to multiply an Excel time by an hourly rate, you'll get a total far less than expected.
The trick is to first convert the Excel time to a decimal time by multiplying by 24.
=(B5*24)// returns 1
Then you can multiply by the hourly rate:
Note: technically, the parentheses in the formula above are not needed and added for clarity only.
Formatting time durations
By default, Excel may display time, even time that represents a duration, using AM/PM. For example, if you have a calculated time of 6 hours, Excel may display this as 6:00 AM. To remove the AM/PM, apply a custom number format like:
h:mm // display hours and minutes
In cases where calculated time exceeds 24 hours, you may want to use a custom format like:
[h]:mm // display hours > 24
The square bracket syntax [h] tells Excel to display hour durations of greater than 24 hours. If you don't use the brackets, Excel will simply "roll over" when the duration hits 24 hours (like a clock). This is the time format used in column B in the above example.
In the Excel time system, one 24-hour day is equal to 1. This means times and hours are fractional values of 1, as shown in the table below: Hours Time Fraction Value 1 1:00 AM 1/24 0.04167 3 3:00 AM 3/24 0.125 6 6:00 AM 6/24 0.25 4 4:00 AM 4/24 0...
In the Excel date system, one day is equal to 1, so you can think of time as fractional values of 1, as shown in the table below: Hours Fraction Value Time 1 1/24 0.04167 1:00 3 3/24 0.125 3:00 6 6/24 0.25 6:00 4 4/24 0.167 4:00 8 8/24 0.333 8:00 12...
Excel handles dates and times using a system in which dates are serial numbers and times are fractional values. For example, June 1, 2000 12:00 PM is represented in Excel as the number 36678.5, where 36678 is the date (June 1, 2000) and .5 is the...
Excel Formula Training
Formulas are the key to getting things done in Excel. In this accelerated training, you'll learn how to use formulas to manipulate text, work with dates and times, lookup values with VLOOKUP and INDEX & MATCH, count and sum with criteria, dynamically rank values, and create dynamic ranges. You'll also learn how to troubleshoot, trace errors, and fix problems. Instant access. See details here.