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Convert time to money

Excel formula: Convert time to money
Generic formula 
=(time*24)*rate
Summary 

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:

=(B5*24)*C5
Explanation 

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:

=(B5*24)*C5
=1*C5
=1*10
=10

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.

Author 
Dave Bruns

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