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Electricity Cost Calculator
Your monthly electric bill is just a number, until you see what it adds up to over 10 years. Enter your bill details below to see your true electricity cost, how you compare to the US average, and how much you could save.
US average: ~$137/month
US average: ~$0.16/kWh
Sources & Methodology
By Sean Baldwin · Last reviewed July 2026
Frequently Asked Questions
What is the average electric bill in the US?
The average US household pays about $137/month for electricity as of 2026, or roughly $1,644/year. This varies widely by state, Hawaii averages $190+/month while Louisiana averages around $115/month.
How can I reduce my electric bill?
The highest-impact changes are: switching to LED bulbs (saves $75+/year), installing a programmable thermostat (saves $50-100/year), sealing air leaks around doors and windows, upgrading to Energy Star appliances, and considering solar panels for long-term savings of 70-90% of your bill.
Are solar panels worth it to reduce electricity costs?
For most homeowners paying $100+/month, solar panels have a payback period of 6-12 years and a 25-year ROI of 200-400%. The federal tax credit was eliminated for 2026 installs, so state and local incentives now matter more for the math. Use our Solar Panel ROI Calculator for a personalized estimate.
What uses the most electricity in a home?
The biggest electricity consumers are: HVAC (heating and cooling, ~46% of usage), water heater (~14%), washer/dryer (~13%), lighting (~9%), and refrigerator (~8%). Targeting your HVAC system typically yields the largest savings.
What your electric bill actually costs over time
The average US household pays about $137/month for electricity, that's $1,644/year, and $16,440 over 10 years. But most people only see the monthly number and never calculate the long-term total. When you frame electricity as a 10-year cost, the math for efficiency upgrades and solar changes dramatically. A $300 smart thermostat that saves $100/year pays for itself in three years and generates $700 in savings over a decade. A $12,000 solar installation that eliminates your bill entirely pays back in 7–8 years and saves $8,000+ in the remaining life of the system. The monthly bill feels small. The decade total is a serious number worth managing.
What uses the most electricity in your home
Heating and cooling (HVAC) accounts for roughly 46% of the average home's electricity use, making it the single biggest lever for reducing your bill. Water heating adds another 14%, washer/dryer around 13%, lighting 9%, and refrigeration 8%. Everything else, TVs, computers, phone chargers, makes up the remaining 10%. This means the familiar advice to "unplug your chargers" is largely useless. Charging a phone uses about $1 of electricity per year. Your air conditioner uses $400–$600. If your goal is to meaningfully reduce your bill, focus on your HVAC system: schedule annual maintenance, change filters every 90 days, set your thermostat 7–10°F higher when you're away, and consider upgrading to a heat pump if your unit is more than 10 years old.
Why electricity rates vary so much by state
The US average electricity rate is about 16 cents per kilowatt-hour (kWh) in 2026, but the range runs from 10 cents (Louisiana, Wyoming) to 40+ cents (Hawaii). What drives the difference? States with abundant hydropower (Washington, Oregon) or natural gas (Texas, Louisiana) have cheap electricity. States that import power, have aging infrastructure, or rely on expensive fuel mixes (Hawaii burns oil, California has high regulatory costs) pay significantly more. This matters because the economics of solar, efficiency upgrades, and EV charging all depend on your local rate, not the national average. A solar system in California or Massachusetts pays back in 5–6 years. The same system in Louisiana might take 15+.
The fastest ways to cut your electric bill
The highest-ROI changes, ranked by impact: (1) Programmable or smart thermostat, $50–$150 upfront, saves $50–$100/year, pays back in 1–2 years. (2) LED bulbs throughout, $30–$80 upfront, saves $75+/year, pays back in under a year. (3) Air sealing doors and windows, $50–$200 in weatherstripping and caulk, saves $100–$200/year depending on your climate. (4) HVAC tune-up, $80–$150 service call, improves efficiency 5–15%, pays back in one season. (5) Energy Star appliances when replacing, not worth buying early, but when your water heater or refrigerator dies, the Energy Star version saves $30–$60/year in operating costs. Solar panels are the highest-impact option for homeowners but require a longer planning horizon, see the Solar Panel ROI Calculator for a personalized payback estimate.
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How We Calculate Your Score
The Worth It Score compares your monthly electricity bill to the U.S. national average. A bill at or below average scores in the 60–88 range; a bill significantly above average scores lower. The score reflects how efficiently you're paying for electricity relative to the national benchmark.
- · Bill ≤70% of national average → 88; ≤90% → 75; ≤110% → 62; ≤130% → 48; ≤160% → 35; ≤200% → 22; above 200% → 10
The national average electricity bill is used as the benchmark. Your costs may be higher for legitimate reasons (large home, electric heat, EV charging) rather than inefficiency. The score is a signal to investigate, not a verdict.
Cite this calculator: Worth It Calculators, "What Is Your Electric Bill Actually Costing You Per Year? (2026)," worthitcalculators.com/electricity-cost/ (updated July 2026).