Electricity Cost Calculator

A kilowatt-hour (kWh) is a unit of energy measuring the amount of work done over one hour by one kilowatt (1,000 watts) of power. It is calculated by multiplying an appliance's power draw in kilowatts by the number of hours it runs: Energy (kWh) = (Watts × Hours) ÷ 1,000.

Heating, ventilation, and air conditioning (HVAC) systems are by far the largest electricity consumers, followed closely by water heaters, clothes dryers, refrigerators, and electric ovens. High-wattage devices like space heaters (typically 1,500W) or central A/C units (3,500W+) incur high operational costs.

Standby power, also known as phantom load, is the electricity consumed by appliances while they are switched off but still plugged in (e.g., TVs, chargers, microwaves). This can account for 5% to 10% of standard residential electricity usage. Unplugging devices or using smart power strips can mitigate this cost.

Watts (W) and Kilowatts (kW) measure power, which is the instantaneous rate of electrical energy transfer (1 kW = 1,000 W). Kilowatt-hours (kWh) measure energy, which is the total amount of power consumed over a period of time.

You can reduce costs by replacing incandescent bulbs with LED alternatives, switching to Energy Star certified appliances, adjusting thermostats slightly closer to outdoor temperatures, running large appliances during off-peak utility hours, and eliminating standby power.