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Cost of that energy
Price the energy once you have it. This is the step where the rate from the bill enters.
The Formula
Cost = kWh x rate
Price the energy once you have it. This is the step where the rate from the bill enters.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| kWh | Energy consumed | kilowatt-hours | Taken straight from the previous formula. |
| rate | Price per kilowatt-hour | currency per kilowatt-hour | Total charge divided by total kWh. Include tax or exclude it, but stay consistent. |
| Cost | Money owed for that energy | currency | Scales linearly with both the energy and the rate. |
What Each Symbol Means
kWhkilowatt-hours
Energy consumed
Taken straight from the previous formula.
ratecurrency per kilowatt-hour
Price per kilowatt-hour
Total charge divided by total kWh. Include tax or exclude it, but stay consistent.
Costcurrency
Money owed for that energy
Scales linearly with both the energy and the rate.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate electricity cost page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Electricity Cost, filed under Everyday Life. Every number the guide produces comes from substituting into this one line.