Enter the total cost and the total energy usage into the calculator to determine the Cost of Energy. 

Cost of Energy Formula

The following equation is used to calculate the Cost of Energy.

CoE = TC / TE
  • Where CoE is the Cost of Energy ($/J)
  • TC is the total cost ($)
  • TE is the total energy usage (Joules, J)

To calculate the cost of energy, simply divide the total cost by the total energy usage.

What are the units for Cost of Energy?

The most common units for Cost of Energy are $/J.

How to Calculate Cost of Energy?

Example Problem:

The following example problem outlines the steps and information needed to calculate the Cost of Energy.

First, determine the total cost. In this example, the total cost is determined to be 1500 ($).

Next, determine the total energy usage. For this problem, the total energy usage is measured to be 10,000 (Joules, J).

Finally, calculate the Cost of Energy using the formula above: 

CoE = TC / TE

Inserting the values from above and solving the equation with the imputed values gives: 

CoE = 1500 / 10000 = .15 ($/J)