Electricity Cost Per kWh: How to Calculate Yours

The average cost of electricity in the United States is 16.6 cents per kilowatt-hour for residential customers, based on 2024 EIA data.^[1] That's a useful benchmark—but it's not what you pay.

Residential rates by state range from about 10¢/kWh in Utah and Idaho to over 35¢/kWh in Hawaii. Even within a single state, rates vary by utility territory. In Massachusetts, Eversource customers might pay 28¢/kWh on the basic service rate, while a shopped competitive rate could be 14-16¢.

The 16.6¢ average also masks the difference between your supply rate (the advertised per-kWh price) and your all-in cost (supply + delivery + taxes + fees). Your all-in cost is always higher than the supply rate alone.

Finding your real electricity cost takes 30 seconds with last month's bill.

Step 1: Find your total bill amount. Use the "amount due" before any late fees—just electricity charges.

Step 2: Find your total kWh consumed. It's listed on every bill, usually near the meter reading.

Step 3: Divide. Total bill ÷ total kWh = your all-in cost per kWh.

Example: $165 bill ÷ 950 kWh = 17.4¢/kWh all-in.

This number is more useful than the supply rate because it captures everything—delivery charges, taxes, surcharges, and monthly fees. Compare this to the national average of 16.6¢. If you're well above, you're likely in a high-cost state or on an expensive plan. Either way, it's the starting point for saving money.

State averages give you context for whether your rate is competitive. Here's where the four deregulated states served by ElectricRates.org stand.^[2]

Texas: 13-14¢/kWh average. But deregulated areas see rates from 8-18¢ depending on the plan. Fixed-rate plans during low-demand months offer the best deals.

Ohio: 13-15¢/kWh average. Standard Service Offer rates from AEP Ohio, Duke Energy, and FirstEnergy sit around 6-8¢ for supply, with competitive plans often beating that.

Pennsylvania: 16-18¢/kWh average. PECO and PPL territories have active supplier competition. Shopping typically saves 10-15% on the supply portion.

Massachusetts: 26-29¢/kWh average—among the highest in the nation. Competitive suppliers frequently offer rates 30-40% below the utility default. The savings potential here is enormous.

Your per-kWh cost isn't random. These five factors explain most of the variation between households.

1. Your plan type. Fixed rates provide stability. Variable rates fluctuate monthly. Default utility rates are almost always the most expensive option in deregulated states.

2. Your usage level. Some plans have tiered pricing—the first 500 kWh might cost 10¢, but everything over 1,000 kWh costs 15¢. High usage can push your average rate up.

3. Time of use. Utilities with TOU pricing charge more during peak hours (2-7 PM) and less overnight. Your cost depends on when you use electricity, not just how much.

4. Season. Wholesale prices spike in summer and winter when demand peaks. Variable rate customers feel this directly.

5. Monthly fees. A $9.99/month plan fee on 500 kWh usage adds 2¢/kWh to your effective rate.

Once you know your rate and usage, projecting your monthly bill is straightforward.

Monthly bill = (rate per kWh × monthly kWh) + fixed fees

The average US household uses 875 kWh per month (10,500 kWh annually).^[3] Here's what that costs at different rates:

At 10¢/kWh: $87.50 + fees ≈ $95-105/month
At 16.6¢/kWh: $145.25 + fees ≈ $155-170/month
At 25¢/kWh: $218.75 + fees ≈ $230-250/month
At 30¢/kWh: $262.50 + fees ≈ $275-295/month

The difference between a 10¢ rate and a 25¢ rate on the same usage is over $130/month—nearly $1,600/year. That's why shopping for rates matters so much in deregulated states. Even a 2¢/kWh difference saves $210/year at average usage.

Breaking down cost by appliance reveals where your money actually goes. Here's the monthly cost for common appliances at the 16.6¢/kWh national average.

Central air conditioning dominates summer bills at $65-100/month, consuming 1,000-1,500 kWh during hot months. In Texas, AC can account for 50%+ of the summer bill.

Electric water heater: $35-50/month. Heating water 24/7 for showers, dishes, and laundry adds up.

Refrigerator: $15-20/month. Newer Energy Star models cost closer to $10.

Lighting (whole house): $10-25/month with LEDs, $40-80 with old incandescents.^[4]

Washer + dryer: $15-25/month combined for average use.

Knowing these numbers helps you target the biggest energy consumers first when trying to lower your bill.

Two strategies work: lower your rate or lower your usage. Ideally both.

To lower your rate in deregulated states, compare plans at ElectricRates.org. Look at the all-in cost, not just the advertised rate. Factor in monthly fees and contract length. Fixed-rate plans signed in fall or spring typically offer the best pricing because demand is lower.

To lower usage, start with the big three: HVAC, water heating, and lighting. A programmable thermostat saves 10-15% on heating and cooling. Lowering your water heater to 120°F saves 4-22% on water heating costs. Switching to LEDs cuts lighting costs by 75%.^[5]

Combine a competitive rate with modest efficiency improvements and you can realistically cut your electricity costs by 25-40% without changing your lifestyle.