The Cost Per Call Calculator is a valuable tool for businesses and individuals who rely on telecommunication services, whether it's for customer service, sales, or marketing purposes. It calculates the cost of each call made based on the overall expenses associated with telecommunications during a given period. By knowing the cost per call, organizations can evaluate the efficiency of their communication services, optimize their budgets, and identify opportunities for cost-saving. This is especially important for companies that have high call volumes or use services like call centers, helplines, or telemarketing.
By breaking down the costs associated with making calls, businesses can make informed decisions regarding their communication strategies, pricing models, and overall operational efficiency.
Formula of Cost Per Call Calculator
The formula for calculating the Cost Per Call is:
Cost per Call = Total Call Cost ÷ Total Number of Calls
Where:
- Total Call Cost is the overall cost incurred for making calls, which includes both fixed and variable costs.
- Fixed Costs: These are the costs that do not change with the number of calls made. Examples include infrastructure costs (e.g., phone systems, call center software), setup costs, and employee salaries.
- Variable Costs: These costs vary based on the number of calls made. This can include time-based charges, call center operational costs, or per-minute costs for outgoing calls.
- Total Number of Calls refers to the total number of calls made during the time period under consideration. This can be measured by looking at the number of incoming or outgoing calls, depending on the context.
Breakdown of Variables
- Total Call Cost
- Fixed Costs: These might include the cost of setting up a call center, purchasing the necessary telecommunication equipment, and maintaining the infrastructure.
- Variable Costs: These typically include the cost of the telecommunication service provider, hourly wages for call agents, or charges incurred based on call duration (e.g., per-minute charges or service fees).
- Total Number of Calls
This is the total volume of calls made over a specified period. The number of calls can be counted using telecommunication service records, call center management software, or any other tracking system that logs calls.
General Terms and Pre-Calculated Values Table
| Term | Pre-Calculated Value |
|---|---|
| Fixed Call Center Setup Costs | $10,000–$50,000 depending on scale |
| Average Call Duration (per call) | 3–5 minutes |
| Average Call Center Agent Wage | $10–$20 per hour |
| Variable Call Costs per Minute | $0.02–$0.10 per minute |
| Total Number of Calls per Month | 10,000–100,000 calls |
This table provides estimates for general terms commonly searched by people working with telecommunication costs. These values help individuals and businesses to better understand typical industry standards and perform quick cost estimates without having to perform full calculations each time.
Example of Cost Per Call Calculator
Scenario: A call center wants to calculate the cost per call for their operations. The following details are provided:
- Fixed Costs: $25,000 per month (including setup, equipment, salaries, etc.)
- Variable Costs: $0.05 per minute for 5-minute calls
- Total Number of Calls: 50,000 calls per month
Step 1: Calculate the Total Call Cost
Total Call Cost = Fixed Costs + (Variable Costs per Minute × Average Call Duration × Total Number of Calls)
Total Call Cost = $25,000 + ($0.05 × 5 minutes × 50,000 calls) = $25,000 + $12,500 = $37,500
Step 2: Apply the Formula
Cost per Call = Total Call Cost ÷ Total Number of Calls
Cost per Call = $37,500 ÷ 50,000 = $0.75 per call
Conclusion:
In this case, the cost per call is $0.75. This means that the company is spending an average of $0.75 for every call made in the call center.
Most Common FAQs
Calculating the cost per call is essential for understanding the overall efficiency and cost-effectiveness of communication operations. It helps businesses identify areas where they can save money, optimize call handling, and streamline operations to reduce unnecessary expenditures.
To reduce your cost per call, you can focus on reducing variable costs (e.g., negotiating better rates with telecom providers or shortening call times) and improving operational efficiency (e.g., optimizing agent workflows and reducing fixed overhead costs).
Yes, the cost per call can vary significantly depending on the industry. For instance, in industries such as customer service, where calls are frequent, the cost per call might be lower due to economies of scale. Conversely, industries that rely on long-duration or high-cost calls, such as telemarketing, might have a higher cost per call.