Convert time worked into money: billable hours x hourly rate formula

Why Duration * HourlyRate underbills by a factor of 24

Spreadsheets store 02:30 (2 hours 30 minutes) as the fraction of a 24-hour day: 2.5 / 24 = 0.104167. Multiplying 02:30 directly by a $120/hr rate calculates 0.104167 * 120 = $12.50 instead of $300.00!

Always multiply a spreadsheet time duration by 24 first to convert fractional days into decimal hours: ROUND(Duration * 24 * HourlyRate, 2).

Billable amount and minimum callout fee formulas

Wrap in MAX(MinFee, ...) when service contracts enforce a minimum dispatch charge (while keeping 0 duration = 0).

=ROUND(A2 * 24 * B2, 2)

Enforce minimum service callout fee

A 25-minute visit ($50 raw) bills the $100 minimum callout fee, while 00:00 bills $0.

=IF(A2 <= 0, 0, MAX(C2, ROUND(A2 * 24 * B2, 2)))

Inputs and interpretation

A2 must be a numeric duration measured in days, not the text HH:MM or decimal hours already. Require nonnegative duration/rate/minimum fee. For durations over 24 hours use elapsed date-time subtraction or hours/24 rather than TIME, which wraps around a day. The zero-duration exemption and minimum fee are illustrative contract policies; taxes, breaks and billing increments are separate.

Further reading

• Microsoft Support — TIME function