kWh (kilowatt-hour) is the unit of energy used on electricity bills. 1 kWh = using a 1,000-watt appliance for 1 hour, or a 100-watt appliance for 10 hours.

What is the average electricity rate in the US?

The US average residential electricity rate is approximately $0.12–$0.16 per kWh, but it varies significantly by state — from under $0.10 in states like Louisiana to over $0.20 in Hawaii and California.

How can I reduce my electricity bill?

Replace incandescent bulbs with LEDs, use smart power strips, set your thermostat a few degrees lower/higher seasonally, run full loads in dishwashers and washing machines, and unplug devices when not in use.

Electricity Bill Calculator

Estimate your monthly & annual electricity costs by appliance or total kWh usage

kWh calculator | CO₂ estimate

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Total Monthly Usage (kWh)

kWh

Average US household uses ~900 kWh/month

Rate per kWh

$ /kWh

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Annual Cost

CO₂ Estimate / Month

@ 0.4 kg CO₂ per kWh

Cost Breakdown

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Top Energy Consumers

Energy Saving Tip

Switching just 10 incandescent bulbs (60W each) to LED equivalents (9W each) can save over 37 kWh per month — nearly $58 per year at the US average rate.

How Is Electricity Cost Calculated?

Understanding the simple formula behind every electricity bill

Your electricity cost is determined by how much energy your appliances consume multiplied by your utility's rate. The standard formula is:

Cost ($) = Power (kW) × Time (hours) × Rate ($/kWh)

First, convert the appliance's power rating from watts (W) to kilowatts (kW) by dividing by 1,000. Then multiply by the number of hours it runs and your rate per kilowatt-hour. For example, a 1,500-watt air conditioner running 8 hours a day at $0.13/kWh costs: 1.5 kW × 8 h × 30 days × $0.13 = $46.80/month.

Your electricity bill shows your total consumption in kWh (kilowatt-hours). This calculator lets you work in both directions: enter your total monthly kWh (Simple Mode) or build up your total from individual appliances (Appliance Mode) to find where your money is going.

Watts → kW

Divide any appliance's wattage by 1,000 to get kilowatts. A 100W bulb = 0.1 kW. A 2,000W oven = 2 kW.

kW × Hours = kWh

Energy = power × time. A 2 kW heater running for 3 hours consumes 6 kWh — that's 6 units on your bill.

kWh × Rate = Cost

Multiply total kWh by your rate per kWh. If you used 500 kWh at $0.13, your bill is $65.00 before taxes and fees.

Which Appliances Use the Most Electricity?

Know your biggest energy consumers to make smarter decisions

Heating & Air Conditioning (HVAC)

~45%

Typical wattage: 1,000–5,000W

The single largest electricity draw in most homes. A central AC unit running 8 hours/day in summer can easily cost $60–$150/month.

Electric Water Heater

~18%

Typical wattage: 3,000–4,500W

Runs in short bursts throughout the day. Insulating your tank and lowering the temp to 120°F can cut costs by 10–15%.

Washer & Electric Dryer

~13%

Typical wattage: 1,800–5,000W

The dryer is the main culprit. Washing in cold water and air-drying when possible can save significantly.

Refrigerator & Freezer

~9%

Typical wattage: 100–400W

Runs 24/7, so even modest wattage adds up. An older fridge can use 2–3× more than a modern Energy Star model.

Lighting

~9%

Typical wattage: 10–60W per bulb

LEDs use 75–80% less energy than incandescent bulbs and last 15–25× longer. The easiest win in any home.

TV & Entertainment

~4%

Typical wattage: 50–400W

Modern TVs are efficient, but game consoles and home theatre setups can draw substantial power.

Tips to Reduce Your Electricity Bill

Practical actions that can cut your energy costs starting today

Switch to LED Lighting

LED bulbs use up to 80% less energy than incandescent bulbs and last 15–25 times longer. Replacing 10 bulbs saves roughly $50–$100 per year with no sacrifice in light quality.

Optimise Your Thermostat

Every 1°F (0.5°C) adjustment to your heating or cooling setpoint saves about 1% on your bill. A programmable or smart thermostat pays for itself within months and can cut HVAC costs by 10–15%.

Eliminate Standby Power

Devices on standby — TVs, chargers, game consoles — can account for 5–10% of home energy use. Smart power strips cut this to zero when devices are not in use.

Wash in Cold Water & Air-Dry

About 90% of a washing machine's energy goes to heating water. Switching to cold washes and line-drying clothes instead of using a dryer can save $100+ per year for a family of four.

Use Appliances Off-Peak

Many utilities charge lower rates during off-peak hours (evenings and weekends). Running dishwashers, washing machines, and EV chargers during these times can meaningfully reduce your bill.

Upgrade to Energy Star Appliances

A 10-year-old refrigerator can use 2–3× more electricity than a modern Energy Star model. When appliances reach end-of-life, upgrading pays for itself through energy savings within a few years.

Frequently Asked Questions

Common questions about electricity costs and this calculator

Electricity cost = Power (kW) × Time (hours) × Rate ($/kWh). First convert watts to kilowatts by dividing by 1,000, then multiply by hours of use and your electricity rate. For example, a 500W washing machine running 2 hours at $0.13/kWh costs: 0.5 kW × 2 h × $0.13 = $0.13 per cycle, or about $5.20/month if used 5 days a week.

kWh (kilowatt-hour) is the standard unit of energy on electricity bills. 1 kWh is the energy consumed by a 1,000-watt appliance running for 1 hour — or equivalently, a 100-watt appliance for 10 hours, or a 10-watt LED bulb for 100 hours. When your utility charges $0.13/kWh, they charge 13 cents for every 1,000 watt-hours of electricity you use.

The US average residential electricity rate is approximately $0.12–$0.16 per kWh, but it varies significantly by state. States like Louisiana and Oklahoma often see rates below $0.10/kWh, while Hawaii ($0.30+) and California ($0.22+) are among the most expensive. Always check your actual utility bill for your precise rate.

The biggest energy consumers in most homes are heating and cooling systems (HVAC), which can account for 40–50% of total usage. Other major consumers include electric water heaters (~18%), electric dryers (~5%), refrigerators (~9%), and lighting (~9%). Together, just heating, cooling, and water heating typically account for over 60% of a home's electricity bill.

The most impactful steps are: (1) Switch to LEDs — saves 75–80% on lighting costs. (2) Optimise your thermostat — each degree of adjustment saves ~1%. (3) Eliminate standby power with smart strips. (4) Wash laundry in cold water — 90% of washer energy goes to heating. (5) Upgrade old appliances — a 10-year-old fridge can use 2–3× more than an Energy Star model.