Electricity cost is easiest to understand by separating power, energy and price. Appliance labels commonly show watts, while utility bills usually charge for kilowatt-hours (kWh).
The basic calculation
Cost = (watts ÷ 1000) × hours used × rate per kWh
A 1,500 W appliance used for 4 hours consumes about 6 kWh. At $0.17/kWh, the energy portion costs about $1.02.
Why actual bills can differ
Utility bills can include fixed charges, taxes, tiered tariffs and adjustments. Cycling equipment may also draw less than nameplate maximum power on average.
Improve the estimate
- Use the rate from a recent bill.
- Use realistic operating hours.
- Use measured average power when available.
- Compare monthly or annual cost, not wattage alone.
Useful calculators
Important: Use current bills, tariffs, quotes and contracts for important decisions.