Shopping & bills

How to Estimate Appliance Electricity Cost

Turn watts, hours of use, days, and a utility rate into daily, monthly, and annual appliance cost.

ReviewedAugust 18, 2026
ANSWER IN BRIEF

Multiply watts by hours used and divide by 1,000 to get kilowatt-hours, then multiply kWh by the electricity rate. Use actual duty cycle or label consumption where possible because many appliances do not draw their rated wattage continuously.

01

Convert power into energy

Watts measure power at a moment; the utility bills energy over time. A 1,500-watt heater running for two hours uses 3 kWh before considering cycling or multiple settings.

02

Use the correct effective rate

A bill's total divided by kWh can capture supply and variable delivery charges, but fixed monthly charges should not always be attributed to one appliance.

03

Account for cycling and standby use

Refrigerators, air conditioners, and thermostatically controlled devices switch on and off. A plug-in energy meter or EnergyGuide estimate can be more realistic than nameplate watts times 24 hours.

SEE IT IN PRACTICE

Example: a 135-watt device

135 watts × 8 hours ÷ 1,000 = 1.08 kWh per day. At $0.18 per kWh, that is about $0.19 daily and $5.83 over 30.4 days if usage is consistent.

BEFORE YOU DECIDE

What to check before you decide

  • Rate tiers, demand charges, taxes, and fixed fees are not fully modeled by one per-kWh price.
  • Do not treat nameplate maximum wattage as guaranteed average consumption.
SOURCES

Sources behind this guide

These official and primary sources let you verify rules, definitions, and terms that may change.

FTC — How to use the EnergyGuide label↗U.S. Department of Energy — Affordable energy for consumers↗

Common questions

Questions you may have next

Can I use the wattage printed on the device?+

Yes as a starting point, but it may be a maximum or rated draw rather than average use.

Why is my bill higher than all appliance estimates?+

Heating, cooling, water heating, standby loads, rate tiers, and fixed charges may be missing.

Should I use kW or kWh?+

kW is power; kWh is energy used and is the unit commonly billed.

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