Electricity Cost Calculator

Find your effective $/kWh rate and calculate the cost of any appliance.

From your utility bill

Monthly electricity bill?

Fixed / service charge?

kWh used per month?

kWh

Your electricity cost

$0.1400/kWh effective rate

Energy charge$140.00/mo

Daily cost$5.00/day

Annual cost$1,800/yr

Monthly usage1,000 kWh

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How to Use This Calculator

Mode 1: From your utility bill

Enter your total monthly bill, the fixed service charge (the flat fee before any electricity use — find it as "customer charge," "service charge," or "meter fee" on your bill), and your kWh used for the month. The calculator backs out your effective energy rate by subtracting fixed charges from the total bill and dividing by kWh consumed.

Mode 2: By appliance

Enter any appliance's wattage (from the label, manual, or a kill-a-watt meter) and hours per day of use. The calculator converts to daily kWh, monthly kWh, and cost at your rate. The editable appliance table below lets you adjust default values for all major home loads simultaneously.

Why the effective rate matters for solar

Your effective rate (after fixed charges) is the number that drives solar economics. If your bill includes a $15/month fixed charge that solar can't eliminate, your actual solar savings rate per kWh is higher than the headline rate. Some utilities have high fixed charges that make solar less effective at bill elimination — understanding this helps you size your system correctly.

The Formula

Energy Charge = Monthly Bill - Fixed Service Charge Effective $/kWh = Energy Charge ÷ kWh Used Daily Cost = Monthly Bill ÷ 30 Annual Cost = Monthly Bill × 12 Per-Appliance: Daily kWh = Appliance Watts × Hours/day ÷ 1,000 Monthly kWh = Daily kWh × 30 Monthly Cost = Monthly kWh × Electricity Rate Annual Cost = Monthly kWh × 12 × Rate

Example

Rachel — Atlanta, GA

Rachel's bill is $145/month in spring. Her utility charges a $12 customer service fee, and she used 967 kWh. She wants to know her true energy rate for solar planning.

Total bill$145

Fixed charge$12

Energy charge$133

kWh used967 kWh

Effective rate$0.1376/kWh

Rachel's effective rate is $0.138/kWh — slightly lower than if she had divided $145 by 967 (which would have given $0.150/kWh). The $12 fixed charge will remain even with solar, so her solar savings calculation should use $0.138, not the full headline rate. This matters: using $0.150 would overstate savings by 9%.

FAQ

What is the average electricity rate in the US? ▼

The US average residential electricity rate in 2026 is approximately $0.15-0.16/kWh, but there's enormous variation: Louisiana (~$0.10), Idaho (~$0.11) vs. California (~$0.25-0.35 tiered), Massachusetts (~$0.22), Hawaii (~$0.35-0.45). Your rate is the single most important number in your solar economics — use your actual utility bill to find it accurately.

What appliance uses the most electricity? ▼

In a typical US home: (1) HVAC (heating and cooling) — 40-50% of total bill; (2) Water heating — 14-18%; (3) Washer/dryer — 5-8%; (4) Refrigerator — 3-5%. Everything else (lighting, electronics, phone charging) is relatively minor. Switching from electric resistance water heating to a heat pump water heater can cut water heating energy by 60-70% and improve solar ROI significantly.

How do I read a utility bill to find my kWh? ▼

Look for "energy used," "kWh consumed," or "current usage" on your bill. Some utilities show a meter reading difference (current meter - previous meter = kWh used). If you're on tiered pricing, the bill may show kWh at different rate tiers — add them together for total usage. Most online utility portals also show 12-month usage history, which is more useful than any single month.

What is a fixed charge on an electricity bill? ▼

Fixed charges (also called customer charges, service charges, or meter fees) are flat monthly fees you pay regardless of how much electricity you use. They typically cover grid maintenance and billing costs. Common amounts: $5-15/month for residential service. Some utilities charge $20-25/month. Solar cannot eliminate fixed charges — even if you produce 100% of your energy, you'll still owe the fixed charge.

How can I reduce my electricity bill before going solar? ▼

The highest-impact moves: (1) Upgrade to a heat pump HVAC — cuts HVAC energy 40-60%. (2) Heat pump water heater — cuts water heating energy 60-70%. (3) Seal and insulate — reduces HVAC runtime. (4) LED lighting throughout — replaces 75-90% of lighting watts. (5) Smart thermostat — reduces HVAC by 10-15%. Reducing consumption before going solar means you need a smaller, cheaper system.