Synthetic monthly bill
- 800 kWh of electricity used
- $72.00 variable supply charge: 9.00¢ per kWh
- $48.00 variable delivery charge: 6.00¢ per kWh
- $14.00 fixed customer charge
- $134.00 total before any other bill-specific items
Appliance-cost input guide
Which electricity rate should you use for appliance savings?
Use the per-kWh charges that would actually change when the appliance uses more or less electricity. Fixed monthly fees usually belong on the household bill, but not in the rate used to estimate one appliance’s savings.
Short answer
Add the variable per-kWh charges; leave fixed fees out
Start with electricity supply or generation charges stated in cents per kWh. Add any delivery, distribution, fuel, or adjustment charge that also rises and falls with kWh. Do not add a flat customer charge that stays the same when consumption changes. If the bill uses tiers or time-of-use periods, use the rate that the appliance is most likely to affect rather than forcing the entire bill into one universal number.
Worked example
A whole-bill average can overstate appliance savings
This fictional bill shows why dividing every dollar by kWh is not always the right appliance rate. The labels and charge structure on a real bill can be different.
Two rates with different jobs
- Variable appliance rate: 9.00¢ + 6.00¢ = 15.00¢ per kWh.
- Whole-bill effective rate: $134 ÷ 800 kWh = 16.75¢ per kWh.
- The 1.75¢ difference comes from spreading a fixed $14 charge across usage.
- Saving 100 kWh reduces the two variable charges by about $15, not $16.75.
Ready to compare two appliances? Use your own electricity rate in the appliance calculator, then keep the bill nearby so the assumption remains easy to check.
Read the charge lines
Classify each charge by what makes it change
Usually relevant to an appliance estimate
- Generation, supply, or energy charges priced per kWh
- Delivery or distribution charges priced per kWh
- Fuel or power-cost adjustments calculated from kWh
- Taxes or surcharges that change directly with the energy charge
Usually not changed by one appliance
- Flat customer, meter, or account charges
- Past-due balances, late fees, deposits, or payment-plan amounts
- Optional products, donations, or non-electric services
- Credits or one-time adjustments unrelated to current kWh
“Usually” matters here. Utilities and tariffs differ. Read the charge description or the published rate schedule when the bill does not say whether an item is fixed or usage-based.
Plans with more than one price
Use the rate the appliance is likely to affect
Flat rate
If all usage has the same variable price, add the variable supply and delivery rates. This is the simplest input and is usually more defensible than the whole-bill average.
Tiered rate
Additional kWh may be priced differently after a threshold. For a savings estimate, use the tier that the reduced consumption would most likely come out of. Test more than one tier if the household regularly crosses the boundary.
Time-of-use rate
Peak, off-peak, and seasonal rates can make runtime important. A refrigerator spans many periods, while a dishwasher or dryer may be movable. Use a weighted rate only when you can explain the expected timing.
When the bill is unclear
Use a dated fallback, then test the decision at a range
The calculator’s 17.30¢ starting rate is a labeled 2025 U.S. residential average from the Energy Information Administration, not a local 2026 quote. The EIA explains electricity prices and their geographic variation. A national average can illustrate the formula, but a household decision should use the household’s rate whenever possible.
When one exact rate is uncertain, calculate a low and high case. If replacing an appliance does not pay back even at the high rate, the energy-only case is weak. If it pays back comfortably even at the low rate, the result is less sensitive to the bill interpretation. Keep non-energy reasons for replacement separate.
Complete the inputs
Related appliance-cost guides
Read an EnergyGuide label
Find annual kWh and understand why the printed dollar estimate may not match your bill.
Open the label guide →Calculate appliance electricity cost
Convert annual kWh—or watts and runtime—into daily, monthly, and annual cost.
See the calculation methods →Compare replacement payback
Use the rate you found to compare operating costs, upfront price, and multi-year savings.
Open the calculator →Primary source
Electricity-price reference
Your utility’s bill and current rate schedule are the controlling sources for your household. This guide explains a method; it does not interpret every tariff.