How to Calculate the kWh Cost

kWh is the base unit for electricity sales.

kWh stands for kilowatt-hours, and it is the base unit of measurement used when calculating electricity consumption for the purposes of billing. It multiplies the amount of electricity consumed at any moment by the amount of time it has been used for, creating a total sum of the power used. Power suppliers will charge different costs per kWh, or might even have a lower rate for the number of kWh consumed at less busy times of day.

Things You'll Need

• Electricity bill
• Calculator

Instructions

1. Divide the cost of your electricity by the total number of kWh consumed over the period. Your utilities bill will state both values. For example, if your bill totals $87.50 and states that it is the cost of 700 kWh, your kWh rate is 87.50 divided by 700, which is $0.125 per kWh.

2. Alternatively, contact your utilities company and ask them for your kWh rate. You will need to quote either your account number with them, found on your bill, or the plan you are on.

3. Once you have your kWh rate, you can use it to compare the cost of different electricity suppliers. Use online comparison sites to shop around for the best rate. Knowing the cost of each kWh of electricity will also help you to understand the cost of what you are using, helping you to cut your fuel bills and reduce carbon emissions.

References

• Go Green in Your Home: Formula for kWh Calculator