What Is a Kilowatt-Hour (kWh)? How to Calculate Electricity Cost
A kilowatt-hour is 1,000 watts used for one hour. Here's how kWh differs from kW and how to calculate what any appliance costs to run.
Work out what any amount of electricity costs at your state's average residential rate – or the rate printed on your bill.
State rates are 12-month residential averages from EIA, through August 2026. Use the rate on your own bill for the most accurate result.
Cost ($) = kWh × rate (¢ per kWh) ÷ 100. Example: 900 kWh × 16¢ ÷ 100 = $144. Your bill may also include a fixed monthly charge, taxes and fees that are not tied to usage.
| Electricity used | US average (18.16¢) | Hawaii (highest) | North Dakota (lowest) |
|---|---|---|---|
| 100 kWh | $18.16 | $44.27 | $12.35 |
| 500 kWh | $90.80 | $221.35 | $61.75 |
| 1,000 kWh | $181.60 | $442.70 | $123.50 |
| 1,500 kWh | $272.40 | $664.05 | $185.25 |
| 2,000 kWh | $363.20 | $885.40 | $247.00 |
Multiply the kilowatt-hours used by your rate per kWh. If your rate is in cents, divide the result by 100 to get dollars.
At the US 12-month average residential rate of 18.16¢ per kWh, 1,000 kWh costs about $182, before fixed charges and taxes.
A kilowatt-hour is 1,000 watts used for one hour – for example a 100-watt bulb running for 10 hours.
Most utilities add a fixed customer charge plus taxes and fees. Some also charge different rates by time of day or by usage tier.
A kilowatt-hour is 1,000 watts used for one hour. Here's how kWh differs from kW and how to calculate what any appliance costs to run.
A line-by-line guide to your electric bill: kWh usage, supply and delivery charges, fixed customer charges, riders and taxes, and how to find your real cost per kWh.
Electricity costs several times more per kWh in some states than others. EIA data shows how fuel mix, grid costs, regulation and climate drive the gap.