Electricity Cost Calculator

Electricity cost is calculated using the formula Cost = (Watts x Hours / 1,000) x Rate per kWh. A device rated at 1,000 watts running for one hour consumes one kilowatt-hour (kWh) of energy. At the U.S. average residential rate of approximately $0.16 per kWh, that single hour costs $0.16. Enter a device's wattage, daily usage, and your electricity rate to calculate daily, monthly, and yearly running costs.

Quick Answer

A 1,500-watt space heater running 8 hours per day at $0.16/kWh costs approximately $1.92 per day, $57.60 per month, and $700.80 per year.

Check the label on your device or its manual

U.S. average is approximately $0.16/kWh

Common Examples

Input Result
1,500W space heater, 8 hrs/day, $0.16/kWh $1.92/day, $57.60/month, $700.80/year
100W light bulb, 10 hrs/day, $0.16/kWh $0.16/day, $4.80/month, $58.40/year
200W TV, 5 hrs/day, $0.12/kWh $0.12/day, $3.60/month, $43.80/year
2,000W oven, 1 hr/day, $0.16/kWh $0.32/day, $9.60/month, $116.80/year
60W ceiling fan, 12 hrs/day, $0.14/kWh $0.10/day, $3.02/month, $36.79/year

How It Works

The Formula

kWh = (Watts x Hours per Day) / 1,000

Daily Cost = kWh per Day x Electricity Rate

Where:

  • Watts is the rated power consumption of the device (found on the device label or in its specifications)
  • Hours per Day is the number of hours the device runs each day
  • 1,000 is the conversion factor from watts to kilowatts
  • Electricity Rate is the cost per kilowatt-hour from your utility bill

Monthly cost is the daily cost times the number of days per month (default 30). Yearly cost is the daily cost times 365 days.

What Is a Kilowatt-Hour?

A kilowatt-hour (kWh) is a unit of energy equal to using 1,000 watts for one hour. It is the standard billing unit for residential electricity. A 100-watt light bulb running for 10 hours uses 1 kWh. A 2,000-watt space heater running for 30 minutes also uses 1 kWh.

Finding Your Electricity Rate

Your electricity rate appears on your monthly utility bill, typically listed as a cost per kWh. In the United States, residential rates range from roughly $0.10 to $0.35 per kWh depending on the state and utility provider. The national average is approximately $0.16 per kWh. Some utilities charge different rates for peak and off-peak hours (time-of-use billing), so the average rate provides the best overall estimate.

Common Appliance Wattages

Typical wattages for common household items: LED light bulb (10W), ceiling fan (60W), laptop (50W), desktop computer (200W), TV (100-200W), refrigerator (150W average), microwave (1,000W), electric oven (2,000W), space heater (1,500W), central AC (3,500W), electric dryer (5,000W). These values represent average consumption; actual wattage varies by model and usage pattern.

Worked Example

For a 1,500-watt space heater used 8 hours per day at $0.16 per kWh: Daily kWh = (1,500 x 8) / 1,000 = 12 kWh. Daily cost = 12 x $0.16 = $1.92. Monthly cost = $1.92 x 30 = $57.60. Yearly cost = $1.92 x 365 = $700.80. The heater consumes 360 kWh per month and 4,380 kWh per year. Switching to a more efficient 1,000-watt heater would reduce yearly cost to $467.20, a savings of $233.60 per year.

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Frequently Asked Questions

How do I find the wattage of my appliance?
Check the label on the back or bottom of the device, which typically lists watts (W) or amps and volts. If only amps and volts are listed, multiply them together to get watts (Watts = Amps x Volts). The product manual or manufacturer's website also lists power specifications. For devices with variable loads like refrigerators, the wattage represents peak or average consumption.
What is the average electricity rate in the United States?
The U.S. average residential electricity rate is approximately $0.16 per kWh as of 2024. Rates vary significantly by state, ranging from around $0.10 per kWh in states like Louisiana and Oklahoma to over $0.30 per kWh in Hawaii and Connecticut. Your actual rate appears on your monthly utility bill.
Does a device use electricity when turned off?
Many devices consume a small amount of standby power (phantom load or vampire power) when plugged in but turned off. Common examples include TVs, game consoles, chargers, and devices with clocks or LED indicators. Standby consumption is typically 1-5 watts per device, which adds up across a household.
How do I reduce my electricity costs?
Common strategies include replacing incandescent bulbs with LED bulbs, using smart power strips to eliminate standby power, running large appliances during off-peak hours if your utility offers time-of-use rates, improving home insulation, and replacing old appliances with energy-efficient models. Identifying the highest-cost devices with this calculator helps prioritize where to reduce usage.
Why does my actual bill differ from the calculator estimate?
Several factors can cause differences: many devices have variable power consumption (refrigerators cycle on and off, washing machines have different cycle phases), your actual daily usage hours may vary, utility bills include fixed charges and taxes beyond the per-kWh rate, and some utilities use tiered pricing where the rate increases as total usage rises.