What an appliance actually costs you
Your utility does not sell you watts. It sells you kilowatt-hours — energy, not power — and the difference is the whole subject. A 1,500 W space heater and a 15 W LED lamp are separated by a factor of 100 in power, but if the heater runs one hour a day and the lamp runs ten, the gap in energy is only a factor of ten. Power tells you how fast an appliance consumes; time tells you how much it consumes. Cost follows the product.
That product is what this calculator forms. It multiplies the running power by the hours you actually use the appliance, divides by 1,000 to get kilowatt-hours, and multiplies by the price you pay for one. It then does the same arithmetic on the standby power for the hours the appliance is idle but still plugged in, because on a television watched four hours a day the twenty idle hours outnumber the active ones five to one, and standby stops being a rounding error.
Two numbers are worth separating in your head. Cost per running hour is the marginal number: what one more hour of use adds to the bill. Cost per year is the budget number: what the appliance is quietly committing you to. A pool pump has a trivial hourly cost and an alarming annual one; a clothes dryer is the reverse. Both are on the results panel above.
The formula, one variable at a time
The whole calculation is one line — kWh = W × h ÷ 1000, then dollars = kWh × rate — and every difficulty is in choosing the three numbers you feed it.
Start with power. If the nameplate gives watts, use it directly. If it gives amps, multiply amps by volts to get volt-amperes, then multiply by power factor to get real watts. For a resistive load — a heater, a kettle, a toaster, an incandescent lamp — power factor is 1 and volt-amperes equal watts. For a motor or a cheap switch-mode supply, power factor is typically somewhere between 0.6 and 0.95 — read it from the nameplate where it is printed — so the nameplate amps overstate the watts the meter records. The watts to amps calculator does that conversion in either direction, and the electrical power calculator covers the general P = VI relationship.
Next, time. Enter the hours the appliance is drawing power, not the hours it is switched on. This distinction breaks most first attempts. A refrigerator is powered 24 hours a day but its compressor runs perhaps a third of that; a thermostatically controlled space heater cycles off once the room is warm. Both are duty-cycled loads, and the honest input is running hours, not clock hours. If you do not know the duty cycle, a plug-in energy meter that logs kWh over a week will tell you — divide the logged kWh by the nameplate kW to get the effective running hours.
Then the rate. The single most common source of a wrong answer here is using the energy charge printed in the tariff instead of the delivered price. Transmission, distribution, capacity, riders and taxes are all billed on top of the energy charge and all scale with the kilowatt-hours you use, so the energy line alone understates what one more kilowatt-hour costs you. Divide the total amount due on your bill by the kilowatt-hours billed and you have the number that actually applies to a marginal kilowatt-hour. If you are on a time-of-use tariff, use the rate for the period you actually run the load; a dishwasher moved to an overnight window can be on a materially different price.
Finally, the 1,000. Watts times hours gives watt-hours; the utility meter counts thousands of them. Dividing by 1,000 is the only unit conversion in the whole calculation, and forgetting it is the classic factor-of-a-thousand error.
Worked example: a 1,500 W space heater for five hours a day
You have a portable resistance heater rated 1,500 W, you run it five hours an evening through the heating season, and your delivered rate is $0.17/kWh. Work it through:
- Energy per hour of running. 1,500 W ÷ 1,000 = 1.5 kWh per hour. A 1,500 W appliance consumes exactly 1.5 kWh every hour it runs — that equivalence is worth memorising.
- Cost per running hour. 1.5 kWh × $0.17 = $0.255 per hour. Roughly a quarter an hour.
- Energy per day. 1.5 kWh/h × 5 h = 7.5 kWh per day.
- Cost per day. 7.5 × $0.17 = $1.275 per day.
- Energy per year. 7.5 kWh × 365 = 2,737.5 kWh.
- Cost per year. 2,737.5 × $0.17 = $465.38. Divide by twelve for a monthly average of $38.78.
Now change one thing: run it only through a four-month season rather than all year. Multiply the daily cost by 122 days instead of 365 and the seasonal cost is $1.275 × 122 = $155.55. The calculator reports a full-year figure, so for seasonal loads take the daily cost and multiply it by the days you actually expect to use the appliance.
And check the electrical side while you are here. 1,500 W at 120 V is 12.5 A. A 15 A branch circuit may carry 12 A continuously under the 80% rule, so a 1,500 W heater on a 15 A circuit is already over the continuous-load allowance — which is why two of them on one circuit trips the breaker.
How to read the result
Compare the annual figure against the whole house. The average U.S. household uses about 10,500 kWh of electricity a year, according to the Energy Information Administration. Anything above roughly 500 kWh a year — about 5% of that total — is a load worth managing: an old second refrigerator, a pool pump, a well pump, a dehumidifier, an aquarium heater, a gaming PC left running. Anything under about 50 kWh a year is noise, and no amount of unplugging it will show up on a bill.
Use cost per running hour to make behavioural decisions and cost per year to make purchase decisions. If a heat pump alternative to that space heater delivers the same warmth at a third of the electricity, the annual figure is what tells you whether the capital cost pays back — the same reasoning as in the LED lighting savings calculator, where the entire case rests on the annual energy difference rather than the hourly one.
Watch the standby line separately. A single device drawing 5 W around the clock costs 43.8 kWh a year — about $7.45 at $0.17/kWh — which is small. The reason standby matters is arithmetic, not drama: a house typically has dozens of such devices, and the same 5 W repeated forty times is 1,752 kWh a year. The calculator prices one appliance; multiply mentally by the number of similar devices you own before deciding whether a switched power strip is worth the trouble.
One caveat on air conditioners, refrigerators and heat pumps: they move heat rather than making it, so their nameplate watts buy several times their own energy in cooling or heating. Comparing a 900 W window unit against a 1,500 W resistance heater on watts alone tells you nothing about comfort delivered. Compare on energy consumed for the same job, which for cooling equipment means using SEER or EER rather than raw wattage.
Annual running cost of common household loads
| Load | Power used here | Running hours/day | kWh per year | Cost per year |
|---|---|---|---|---|
| LED bulb | 10 W | 5 | 18.3 | $3.10 |
| Ceiling fan | 60 W | 8 | 175.2 | $29.78 |
| Refrigerator (compressor running) | 150 W | 8 | 438.0 | $74.46 |
| Desktop PC and monitor | 200 W | 6 | 438.0 | $74.46 |
| Window air conditioner | 900 W | 8 | 2,628.0 | $446.76 |
| Pool pump | 1,100 W | 8 | 3,212.0 | $546.04 |
| Portable space heater | 1,500 W | 5 | 2,737.5 | $465.38 |
| Clothes dryer | 3,000 W | 1 | 1,095.0 | $186.15 |
| Electric storage water heater | 4,500 W | 3 | 4,927.5 | $837.68 |
The heater and the dryer make the point: the dryer draws twice the power but costs 60% less to run, because it runs a fifth as long.
Mistakes that make an energy estimate wrong
- Using clock hours instead of running hours. A refrigerator is plugged in 8,760 hours a year and running maybe 3,000 of them. Enter the running hours or you will overstate the cost by a factor of three.
- Using the tariff's energy charge instead of the delivered rate. Divide your total bill by the kWh billed. Delivery, capacity and taxes are real money and they scale with consumption.
- Treating nameplate watts as measured watts. Nameplates are maximum ratings. A 1,200 W microwave draws 1,200 W of input only at full power, and a 65 W laptop charger rarely draws 65 W. A plug-in meter settles it in an evening.
- Multiplying amps by volts and stopping there. That gives volt-amperes. For motors and electronics you must also multiply by power factor to get the watts the utility meter records.
- Assuming 30 days is a month. Twelve 30-day months is 360 days, so you lose five days a year. This calculator derives the month from the year (365 ÷ 12 = 30.4 days) rather than the other way round.
- Forgetting that heating and cooling are seasonal. An annual figure for a load you use four months of the year overstates it by three times. Use the daily cost and your real number of days.
- Ignoring the second refrigerator. A 20-year-old unit in an unconditioned garage runs a longer duty cycle in summer than the kitchen unit does, and it is easy to forget entirely when you list the loads in the house.
When a load is 'continuous' under the NEC
NFPA 70, the National Electrical Code (2023 edition), defines a continuous load as one expected to run for three hours or more, and requires the branch circuit and its overcurrent device to be sized at 125% of that load — equivalently, a continuous load may not exceed 80% of the breaker rating. That puts the ceiling at 1,440 W on a 120 V, 15 A circuit and 1,920 W on a 120 V, 20 A circuit. Space heaters, EV chargers, well pumps and dehumidifiers all cross the three-hour line routinely. If your appliance's wattage is close to those limits, size the circuit with the continuous load breaker sizing calculator before you plug it in, and use the EV charger circuit load calculator for vehicle charging specifically.
Key terms
- Kilowatt-hour (kWh)
- The energy consumed by a 1,000 W load running for one hour. It is the unit on your meter and the unit your tariff prices. One kWh is 3.6 megajoules.
- Duty cycle
- The fraction of the time a thermostatically or pressure-controlled appliance actually draws power. A refrigerator with a 35% duty cycle runs 8.4 hours out of every 24.
- Standby power
- The power a device draws while plugged in but not performing its function — clocks, remote-control receivers, network keep-alive, and the idling losses of the internal power supply.
- Power factor
- The ratio of real power (watts, what you are billed for on a residential meter) to apparent power (volt-amperes, what the conductors must carry). Resistive loads have a power factor of 1.
- Delivered rate
- Total bill divided by kilowatt-hours billed. It includes generation, transmission, distribution, riders and tax, and is always higher than the headline energy charge.
Where this calculator stops, and what to use instead
This is an energy-charge calculator. It does not model demand charges, which commercial and industrial customers pay on their highest 15- or 30-minute average draw in a billing period; on those tariffs a load that runs briefly at the wrong moment can cost far more than its kilowatt-hours suggest. It does not model tiered residential tariffs, where the marginal kWh is priced higher once you cross a monthly threshold — on those tariffs the marginal rate, not the average rate, is the correct input. It does not model net metering or a rooftop array offsetting part of the load, which shifts the economics of daytime appliances specifically; size that side with the solar panel array sizing calculator.
It also assumes constant power while running. That holds well for heaters, lamps and resistive loads and poorly for anything with a variable-speed drive, an inverter compressor or a duty cycle that changes with weather. For those, measure over a week with a recording plug meter and back out the effective hours rather than guessing them.
Off-grid, the relevant question is usually runtime rather than dollars: how long a battery bank carries the load, which is the battery runtime calculator, or what it costs per kWh from an engine, which is the generator fuel consumption calculator. The arithmetic is the same shape — power multiplied by time — but the price of a kilowatt-hour comes from a fuel tank instead of a meter, and it is typically several times the grid price.
