Enter the annual electricity usage (kWh) and the average cost of electricity ($/kWh) into the Average Monthly Electricity Bill Calculator. The calculator will evaluate and display the Average Monthly Electricity Bill.

## Average Monthly Electricity Bill Formula

The following formula is used to calculate the Average Monthly Electricity Bill.

**AEB = AEU * ACE /12**

- Where AEB is the Average Monthly Electricity Bill ($/month)
- AEU is the annual electricity usage (kWh)
- ACE is the average cost of electricity ($/kWh)

## How to Calculate Average Monthly Electricity Bill?

The following example problems outline how to calculate Average Monthly Electricity Bill.

Example Problem #1:

- First, determine the annual electricity usage (kWh).
- The annual electricity usage (kWh) is given as: 70,000.

- Next, determine the average cost of electricity ($/kWh).
- The average cost of electricity ($/kWh) is provided as: .15.

- Finally, calculate the Average Monthly Electricity Bill using the equation above:

AEB = AEU * ACE /12

The values given above are inserted into the equation below and the solution is calculated:

AEB = 70,000 * .15 /12 = 875.00 ($/month)

Example Problem #2:** **

For this problem, the variables needed are provided below:

annual electricity usage (kWh) = 10,000

average cost of electricity ($/kWh) = .50

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

AEB = AEU * ACE /12** = ?**