In this article
  1. The basics
  2. The formula
  3. What usually uses the most?
  4. 10 ways to cut your bill
  5. Fuel too
  6. Bottom line

Your electricity bill arrives higher than usual and you wonder why. The air conditioner? The water heater? The old fridge? Instead of guessing, you can calculate each appliance’s consumption with a simple formula and see where your money goes.

The basics

The formula

Daily use (kWh) = power in watts × hours of use ÷ 1,000

Monthly cost = daily use × 30 × price per kWh

Example: a 2,000 W electric heater running 3 hours a day: 2,000 × 3 ÷ 1,000 = 6 kWh a day, or 180 kWh a month. At 1.5 per kWh, that’s 270 a month from one appliance.

Try your appliances in the Electricity Cost Calculator, and check the rate on your bill — some countries use tiered pricing that rises with consumption.

What usually uses the most?

ApplianceWhy?
Air conditioners and heatersHigh power and long running hours
Electric water heaterKeeps water hot all day
Oven, iron and dryerVery high power, even for short periods
Old refrigeratorRuns 24 hours; older models are less efficient
Devices on standbySmall but constant draw

10 ways to cut your bill

  1. Set the air conditioner to a moderate temperature; every extra degree of cooling increases use.
  2. Clean AC filters regularly.
  3. Put the water heater on a timer instead of running it all day.
  4. Replace traditional bulbs with LEDs.
  5. Unplug unused chargers and devices, or use a switched power strip.
  6. Don’t put hot food straight into the fridge, and keep it away from heat sources.
  7. Run the washing machine full and at a lower temperature when possible.
  8. Make the most of daylight and natural ventilation.
  9. When buying a new appliance, compare energy-efficiency ratings.
  10. If you have a cheaper night tariff, run large appliances then.

Fuel too

To review transport costs the same way, use the Fuel Cost Calculator — and put what you save into a savings plan.

Bottom line

Watts × hours ÷ 1,000 = kWh. Start by calculating your biggest consumers — that’s where the largest savings lie — then apply simple habits whose effect adds up month after month.