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:

1. First, determine the annual electricity usage (kWh).
• The annual electricity usage (kWh) is given as: 70,000.
2. Next, determine the average cost of electricity (\$/kWh).
• The average cost of electricity (\$/kWh) is provided as: .15.
3. 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 = ?