1. What Is a Cost per kWh Calculator?

Definition: This calculator determines the cost per kilowatt-hour (kWh) of electricity based on your total energy bill and consumption.

Purpose: Helps consumers and businesses understand their true electricity costs and compare rates between providers or plans.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( C_{kWh} \) — Cost per kilowatt-hour ($/kWh or £/kWh)
• \( C \) — Total cost of electricity ($ or £)
• \( E_{kWh} \) — Total energy consumption (kWh)

Explanation: The total electricity bill amount is divided by the total kilowatt-hours consumed during the billing period.

3. Importance of Knowing Your Cost per kWh

Details: Understanding your actual cost per kWh helps with budgeting, comparing energy plans, evaluating appliance efficiency, and identifying potential savings.

4. Using the Calculator

Tips: Enter your total electricity cost (from your bill) and total kWh consumed (also from your bill). Both values must be greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find these numbers on my bill?
A: Look for "Total Amount Due" for cost and "Total kWh Usage" or similar for consumption.

Q2: Should I include taxes and fees?
A: For accurate comparison, include all charges that vary with usage (but exclude fixed fees if comparing base rates).

Q3: Why is my calculated rate different from the advertised rate?
A: Bills often include additional charges (delivery fees, taxes) beyond the base generation rate.

Q4: How can I use this to compare providers?
A: Calculate your current cost per kWh, then compare with other providers' estimated costs for similar usage.

Q5: Does this work for both residential and commercial?
A: Yes, the calculation is the same regardless of customer type, though commercial rates often have different structures.