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How the Electricity Cost Calculator Works (With a Worked Example)

Updated 6 June 2026 · Everyday

Works out how much an appliance costs to run. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Electricity Cost Calculator.

Why it matters

Some of the most useful calculations are the small everyday ones: how much a road trip costs in fuel, what an appliance adds to the power bill, or how many working days are left until a deadline.

What you need to enter

The calculator asks for 3 inputs. The table shows each one with the example value used later in this guide.

InputExample value
Appliance power (watts)2000
Hours used per day3
Tariff (cents per kWh)32

The formula

kWh = watts ÷ 1000 × hours. Cost = kWh × tariff.

Worked example

Entering the example values above gives these results:

ResultValue
Cost per quarter (91 days)$174.72
Energy per day6 kWh
Cost per day$1.92
Cost per year$700.80

The headline figure is $174.72 (cost per quarter (91 days)). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.

How the cost per quarter (91 days) changes with appliance power

The table below keeps every other input at the example value and moves only “Appliance power (watts)” up and down by 10% and 20%. It shows how sensitive the cost per quarter (91 days) is to that one figure.

Appliance power (watts)Cost per quarter (91 days)
1,600$139.78
1,800$157.25
2,000$174.72
2,200$192.19
2,400$209.66

At 1,600 the result is $139.78; at 2,400 it is $209.66. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.

A practical tip

Check your bill for time-of-use tariffs. Running appliances off-peak can be much cheaper.

Keep going

Before relying on the number, read Getting the Most From a Electricity Cost Calculator: Tips and Common Errors. You might also find these guides useful:

Frequently asked questions

Are the results exact?
Maths calculations are exact. Cost calculations depend on the prices and usage you enter.
Do the date calculators handle leap years?
Yes. They use real calendar dates.
Can I suggest a calculator?
Yes. Use the contact page to request one.

Run your own numbers in the Electricity Cost Calculator.

Open the calculator

General information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.