METHODOLOGY

How Utility Cost Lab calculates estimates.

Most tools start with standard energy relationships and values entered by the user.

Core electricity formula

Energy in kWh = power in watts ÷ 1,000 × hours of use. Electricity cost = kWh × electricity rate.

Equipment that cycles

Air conditioners, refrigerators, heaters, pumps, and thermostatic equipment may not draw nameplate power continuously.

Electricity rates

State pages use residential average prices published by the U.S. Energy Information Administration for the displayed month.

Rounding

Intermediate calculations retain more precision than displayed results.

Important limitations

Results are estimates, not bills or quotes. Climate, behavior, equipment condition, and tariffs affect real cost.