How to Calculate Your Electricity Bill
Understanding your electricity bill starts with knowing how much energy each appliance uses. Energy consumption is measured in kilowatt-hours (kWh) — the unit your utility company bills you for. Calculating each appliance's monthly kWh and multiplying by your rate per kWh shows you exactly where your electricity money goes and where you can save.
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Formula
Electricity Bill Calculator
Estimate your monthly electricity bill based on appliance usage.
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Worked Example
Given:
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FAQs
What appliances use the most electricity?
The biggest consumers are typically: electric water heater (3,000–4,500 W), electric oven (2,000–5,000 W), air conditioner (1,000–4,000 W), electric dryer (5,000 W), dishwasher (1,200–2,400 W), and EV charger (1,500–7,200 W). Lighting has become much less significant since the switch to LED.
How do I read my electricity bill?
Electricity bills show total kWh consumed in the billing period, cost per kWh (unit rate), any standing charges (fixed daily or monthly fees), and taxes. Some utilities have tiered pricing where the rate increases after a threshold. Smart meters provide detailed hourly usage data to identify high-consumption periods.
How much can I save by switching to LED lighting?
LED bulbs use 75–80% less energy than incandescent bulbs. Replacing a 60 W incandescent with a 9 W LED running 4 hours per day saves 51 W × 4 hours = 204 Wh = 0.204 kWh per day = 74.5 kWh per year per bulb. At $0.25/kWh, that is about $18.60 saved per bulb per year.