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How to Calculate Cost of Electricity Formula

Electricity Cost Formula:

\[ \text{Cost} = \frac{P \times t \times \text{Rate}}{1000} \]

watts
hours
$/kWh

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1. What is the Electricity Cost Calculator?

Definition: This calculator estimates the cost of electricity consumption based on power usage, duration, and electricity rate.

Purpose: It helps homeowners, businesses, and energy-conscious individuals understand and predict their electricity expenses.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ \text{Cost} = \frac{P \times t \times \text{Rate}}{1000} \]

Where:

Explanation: The formula converts watts to kilowatts (dividing by 1000) and multiplies by hours and rate to get total cost.

3. Importance of Electricity Cost Calculation

Details: Understanding electricity costs helps with budgeting, energy conservation, and comparing appliance efficiency.

4. Using the Calculator

Tips: Enter the power in watts, time in hours, and electricity rate (default $0.12/kWh). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: How do I find my electricity rate?
A: Check your utility bill - it's typically listed as "price per kWh" in the charges section.

Q2: What's the average power consumption of common appliances?
A: LED bulb: 10W, Laptop: 50W, Refrigerator: 150W, AC unit: 1000-5000W.

Q3: Why divide by 1000 in the formula?
A: Utility companies charge per kilowatt-hour (kWh), and 1 kW = 1000 watts.

Q4: Can I calculate monthly costs with this?
A: Yes - multiply daily usage by 30, or enter total monthly operating hours.

Q5: Does this include all utility charges?
A: No, this calculates energy cost only. Your bill may include additional fees and taxes.

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