Enter the total cost and the total volume in cubic feet into the calculator to determine the cost per therm.

## Cost Per Therm Formula

The following equation is used to calculate the Cost Per Therm.

CPTH = TC / (V/1000)
• Where CPTH is the cost per therm ($/therm) • TC is the total cost of natural gas ($)
• V is the volume of the natural gas (ft^3)

To calculate the cost per therm, first, divide the volume in cubic feet by 1000, then divide the total cost by that value.

## What is a Cost Per Therm?

Definition:

A cost per therm is a term used to described the cost of 1000 cubic feet of volume of some material, which is most often time natural gas.

A therm is simply a unit of measure equal to 1000 cubic feet.

## How to Calculate Cost Per Therm?

Example Problem:

The following example outlines the steps and information needed to calculate Cost Per Therm.

First, determine the total cost of the material. In this example, we are looking at natural gas, and the total cost is $1250.00. Next, determine the total volume. The volume of this lot of gas is measured to to be 2000 cubic feet. Finally, calculate the cost per therm using the formula above: CPTH = TC / (V/1000) CPTH =$1250 / (2000/1000)

CPTH = \$750/therm