Turn annual appliance kWh into your own electricity cost

Use energy consumption, not just the label's dollar figure

EnergyGuide's operating-cost figure uses specified usage assumptions and a reference energy price. The FTC explains that your actual cost depends on how you use the appliance and your local price. Where annual electricity consumption is available, use that kWh value with your own rate.

Use the same class of appliance and comparable capacity when interpreting the alternatives. The arithmetic can compare any two energy figures, but a smaller appliance may not meet the same household need.

Reference: FTC: How to use the EnergyGuide label

Check cents, dollars and quantity

A rate of 20 cents per kWh is $0.20 per kWh. An appliance using 500 kWh per year therefore costs $100 per year at that rate. Enter 20 in this calculator's cents field, not 0.20.

Multiply per-appliance energy by the number of units. If a figure already represents a combined total for several appliances, enter that combined figure with quantity one rather than multiplying it again.

Power in watts describes a rate of energy use; kWh describes energy over time. For equipment that cycles on and off, continuous nameplate power can be a poor approximation of annual consumption. Use annual energy information or a supported measurement rather than assuming full power all day.

Reference: EIA: Measuring electricity

Choose a rate that matches the question

Your bill or utility plan is more relevant to your household than a state average. The calculator's dated state rates are reference estimates. It does not assign usage to time-of-use periods or reproduce every tariff component.

Fixed monthly charges generally are not changed by choosing one appliance over another. Keep them separate when comparing incremental operating costs. If your usage moves between pricing tiers or times, this single-rate model is an approximation.

Operating savings are only part of replacement payback

Subtract the alternative's annual operating cost from the current appliance's cost. The current tool compares an alternative annual-kWh figure with the first appliance entered, using the same quantity. Name that first row clearly before interpreting the comparison.

To calculate simple payback separately, divide the extra installed purchase cost by positive annual operating savings. With no positive savings, there is no operating-cost payback under those assumptions. The tool does not currently take an installed-price input.

Simple payback does not include financing, maintenance, disposal, remaining life or future rate changes. A positive annual saving is not by itself a reason to replace a working appliance. Use the example to understand the scale of savings, then compare the actual purchase alternatives.

A worked example with inspectable inputs

The $800 incremental installed price is a separate illustrative assumption, not an input currently collected by the tool. Simple payback here is $800 ÷ $80/year; it excludes financing, maintenance, disposal, remaining life and future rate changes.

Illustrative figures, not market averages. The underlying costs are calculated with the same engine as the tool; additional derived measures are labeled.

Sources and calculation notes

• FTC: How to use the EnergyGuide label

  August 2022 guidance on label estimates and differences in actual use and local prices.

• EIA: Measuring electricity

  Definitions of power and energy units. Numerical examples here use an illustrative 20 cents/kWh rate.

Read the appliance electricity cost methodology for the model assumptions and excluded costs.

Published September 8, 2026. Sources checked September 8, 2026. Editorial policy · Corrections