The managers in a company often find it difficult to multiply time by the rate of money to get the total daily payment. This can be easily done in **Excel**. But most managers find it onerous to multiply time by money in Excel. Thus, they can not keep track of the total salary of the employees. Manual tracking only makes their lives harder. For this reason, in this article, we will discuss in detail how to multiply time by money in **Excel**.

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## Step-by-Step Procedures to Multiply Time by Money in Excel

In this **Excel **tutorial, we will discuss how to multiply time by money. Here, we will talk about the formulas that will allow us to multiply time by money in **Excel**. We will also use **the IF Function** to make the example more pragmatic. We will explain each steps to multiply time by money in** Excel**. We will use the sample data below to illustrate the procedures.

### Step 1: Calculating Time Difference

- Firstly, select the first cell under the
*“Work Hour”.* - In our case, we will select the
cell.*E5* - Then, type the equal sign to enter the formula below.

`=(D5-C5)`

- In this formula, we will subtract
from “*“Starting Time”*.*Ending Time”* - In this instance, we will take the
cell out of the**C5**cell.**D5** - Then, hit
.**Enter**

- As a result, you will notice that a time has been added to that cell.
- It is because the number in the cell is formatted for
.*Time format*

### Step 2: Changing Data Format

- Secondly, go to the
tab.*Home* - Then, navigate to the
group.*Number* - From the box in the
group, make the number type from*Number*to*Time*.*General*

**Read More: How to Move Data from Row to Column in Excel (4 Easy Ways)**

### Step 3: Displaying Time Difference in Fraction

- Consequently, you will see that the cell shows a fraction.
- In this case, cell
shows*E5*.**0.33333333** - This is because
saves time as a fraction of*Excel*hours.*24*

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### Step 4: Changing Fractional Times

- Thirdly, you will multiply the cell by
.**24** - Write the following formula,

`=(D5-C5)*24`

- In our example, we will multiply the value in the
which is*E5*cell by*(D5-C5)*.*24* - As a result, the cell will show the desired time difference.
- In our case, it is
*8.*

- After that, we will move the cursor down to the last cell of the dataset.
- Excel will automatically complete the rest of the values.

**Read More:**** If a Value Lies Between Two Numbers Then Return Expected Output in Excel**

### Step 5: Applying Conditions to Hourly Pay Rate

- The amount paid per hour depends on how many hours the employee has put in.
- In our case, we will indicate the rates as follows.

**Read More: How to Calculate APR in Excel (3 Simple Methods)**

### Step 6: Using IF Function

- Now, select the first cell under the
*“Hourly Rate”* - In this case, we will go for the
cell.*F5* - Then, type equal and write this formula below,

`=IF(E5<8,$F$12,IF(E5=8,$F$13,IF(E5>8,$F$14)))`

- Finally, hit
.*Enter*

**Formula Breakdown**

: This is the IF formula which takes 3 arguments, namely:*IF(E5>8,$F$14)*,*logical_test*,*value_if_true*. The*value_if_false*argument seeks the data on which it will imply the condition. In our case, the cell with the data is*logical_test*and the condition is if the value in the*E5*cell is greater than*E5*. The argument*8*adds the value to the cell if the condition is satisfied. In our case, the value is*value_if_true*.*$50*This is a nested if statement, which means it has an f statement inside of another if statement. Here, the*IF(E5=8,$F$13,IF(E5>8,$F$14)):*argument of the first if statement is the second if statement. In other words, if the value in the cell does not satisfy the condition in the first if statement then it will go to the second if statement. Here, the first condition is if the value in*value_if_false*is equal to*E5*If it is true, then*8.*will assign the value in the*Excel*cell to the*F13*cell, which is*E5*.*$40*This is another nested if statement. Here too, the*IF(E5<8,$F$12,IF(E5=8,$F$13,IF(E5>8,$F$14))):*argument of the first if statement is the second if statement. In other words, the second if statement will be invoked if the value in the cell does not meet the criteria in the first if statement. Here, the first condition is if the value in*value_if_false*is less than*E5*. If it is true, then*8***Excel**will assign the value in thecell to the*F12*cell which is*E5**$30.*

- Consequently, the cell will contain a value according to the conditions.
- Then, slide the cursor down to the last cell of the dataset.
**Excel**will automatically fill the rest of the cells.

### Step 7: Multiply Time by Money

- After that, go to the first cell under the
*“Total Payment”* - Here, we choose cell
.*G5* - Then, type the equal sign followed by the following formula,

`=F5*E5`

- Here, we will multiply the corresponding value in the
cell by the*“Work Hour”*cell value.*“Hourly Rate”* - In this example, we will multiply cell
by cell*F5*.*E5* - Finally, hit
**Enter.**

- Consequently, we will get our desired total payment.
- After that, lower the cursor to the final data cell.
**Excel**will auto-fill The rest of the cells.

**Read More: ****How to Create Money Management Excel Sheet for Trading**

## Conclusion

In this article, we have discussed the procedures to multiply time by money. After going through this article, **Excel **users will have a clear understanding of how the time variables are stored in **Excel**. This will allow them to multiply time by money and keep track of the total payment for a certain number of work hours. If you find it useful, please let us know in the comment section below and share any recommendations and thoughts regarding this or any other content of ours. Thank you for your time. Follow ** ExcelDemy.com** for more articles like this.

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