Annual kWh cost: turn appliance energy use into dollars
Start with annual energy use and your own rate.
If you already have annual kWh, you do not need to estimate watts and daily hours again. Multiply annual kWh by your variable price per kWh. Keep the units consistent: a rate in cents produces a cost in cents before conversion to dollars.
The FTC says the estimated operating cost on an EnergyGuide label is only an estimate based on assumed use and energy prices. Your own cost depends on your use and local rate. Use the energy figure as an input, not the printed dollar amount as a promise. [1]
Example annual electricity costs
This table uses an invented rate of 20 cents per kWh. The energy amounts are example inputs, not typical measurements for particular appliances. Replace the rate with yours.
| Annual consumption | Annual electricity cost |
|---|---|
| 100 kWh | $20 |
| 200 kWh | $40 |
| 300 kWh | $60 |
| 500 kWh | $100 |
| 1,000 kWh | $200 |
Check cents versus dollars
The calculator asks for cents per kWh. Convert a rate quoted in dollars to cents before entering it. Check the unit beside the input and the rate shown in the worked example.
Your utility bill contains more than one appliance
An unchanged fixed charge does not rise with this appliance’s consumption, so it is excluded from this comparison. It still belongs in your complete household budget, counted once. Time-of-use prices, variable taxes and tiered rates require a suitable assumption about the rate on the electricity you would avoid.
Check the period attached to an energy figure. A value per cycle is not annual kWh. Multiply it by your expected annual cycles first. Similarly, a measured day does not necessarily represent holidays, seasons or a change in how you use the appliance.
Compare annual consumption directly
Our invented comparison uses 300 and 150 kWh per year. At the same rate, A costs $60 and B costs $30. The annual difference is $30. Both purchase prices are zero in this example, so it cannot by itself justify buying a replacement.
For a purchase, add upfront costs in the appliance cost calculator. If you only know watts and hours, start with measuring appliance electricity.
Cost difference over 1 years
$30.00Appliance B costs less over the selected period.
| Cost | A | B |
|---|---|---|
| Upfront cost from today | $0.00 | $0.00 |
| Electricity per year | $60.00 | $30.00 |
| Electricity over 1 years | $60.00 | $30.00 |
| Total cost | $60.00 | $30.00 |
- Annual electricity saving with B
- $30.00
- B’s premium recovered after
- No premium for B
Assumptions behind this calculation
- Unchanged electricity rate and annual use throughout the selected period. Annual costs are rounded to cents. Excludes repairs, financing, price changes, resale value and environmental impacts. Payback spreads annual savings evenly and rounds up to whole months. An assumed period is not a lifespan guarantee.
The full calculator with an example, the method and sources: Appliance Cost Calculator: Buy and Run
What you can do about it
-
Check inputs
Use your electricity consumption and rate.
-
Compare alternatives
Include purchase and running costs over the same period.
-
Check your budget
Plan with money that is actually available.
Frequently asked
Do I multiply annual kWh by 365?
No. Annual kWh already covers a year. Multiply only by the electricity price per kWh.
Why does this differ from my utility payment?
The table shows example usage costs. Your bill covers the whole household and may include fixed and other charges.
Can I enter kWh per cycle?
Convert it to annual use first by multiplying by your expected annual number of cycles.
Sources
- How To Use the EnergyGuide Label To Shop for Home Appliances, Federal Trade Commission, retrieved October 3, 2026.
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