# Electricity Cost Calculator

> Electricity Cost: Cost = kWh × price per kWh + fixed charge + billed kW × demand charge. Methodology stated, your own inputs only.

Page: https://freecalculator.tech/tools/electricity-cost-calculator
Last reviewed: 2026-10-20

## Formula

Cost = kWh × price per kWh + fixed charge + billed kW × demand charge.

- Methodology: a bill split into energy, fixed and demand components, the structure the U.S. EIA describes for electricity prices.
- No price is built in — every rate comes from your bill, contract or a dated saved rate.
- Taxes, time-of-use bands and tiered blocks are not modelled; run each band separately.
- Cost = kWh × price per kWh + fixed charge + billed kW × demand charge.
- Inputs used: Currency (symbol only, never converted), Energy used in the period, Your energy price per kWh (from your bill or a saved rate), Fixed charge for the period (blank = none), Billed peak demand (blank = none), Demand charge per kW (blank = none).

## Inputs

- Currency (symbol only, never converted)
- Energy used in the period
- Your energy price per kWh (from your bill or a saved rate)
- Fixed charge for the period (blank = none)
- Billed peak demand (blank = none)
- Demand charge per kW (blank = none)

## Worked example: A month

1,200 kWh at $0.15 with a $10 fixed charge.
1. 1,200 × 0.15 = $180.
2. 180 + 10 = $190.

## Common questions

### Why isn't an electricity or fuel price filled in?

Prices differ by country, supplier, tariff and time of use, so there is no universal figure. Enter the rate from your bill or contract, or pick a dated saved rate if one is listed on the page.

### What is a demand charge?

A charge on your highest metered power (kW) in the billing period, common on business tariffs. Leave it blank if your bill has none.

### Why is my average per kWh higher than the rate?

Fixed and demand charges are spread over the energy you used, so the average rises when usage is low. Check the formula, example, and limitations on this page before using the result for a real energy decision.

### How do I use the Electricity Cost Calculator?

Enter the required values for Currency (symbol only, never converted), Energy used in the period, Your energy price per kWh (from your bill or a saved rate), Fixed charge for the period (blank = none), Billed peak demand (blank = none), and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the Electricity Cost Calculator use?

Cost = kWh × price per kWh + fixed charge + billed kW × demand charge. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

### Can the Electricity Cost Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Single flat energy rate; tiered and time-of-use tariffs need one run per band.
- Taxes, levies and credits are not added.
- Results are estimates built only from the figures you enter. No electricity, fuel or gas price, equipment efficiency or benchmark is built in — tariffs vary by supplier, region and time, and equipment data must come from the manufacturer. Designs and installations must be checked by a qualified professional.
- The result depends on the values you enter for this electricity cost calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- U.S. EIA — https://www.eia.gov/energyexplained/electricity/prices-and-factors-affecting-prices.php

## Cite this page

- APA: Free Calculator. (2026, October 20). Electricity Cost Calculator. https://freecalculator.tech/tools/electricity-cost-calculator
- MLA: "Electricity Cost Calculator." Free Calculator, 20 Oct. 2026, https://freecalculator.tech/tools/electricity-cost-calculator.
- Link: Electricity Cost Calculator — Free Calculator, https://freecalculator.tech/tools/electricity-cost-calculator