Electricity Bill Calculator (Tiered Tariff)
Enter your units and tariff to estimate the bill and the average price per kWh.
Your numbers
Your results
Where the bill comes from
Electricity Bill Calculator (Tiered Tariff) by TheCalcTools
How the Electricity Bill Calculator (Tiered Tariff) works
Many utilities charge rising prices as use increases (inclining block tariffs). The first block of units is billed at the tier 1 price, the next block at tier 2, and the rest at the top price.
Fixed charges and taxes are added on top. Enter the tiers and prices printed on your bill; for a flat tariff, set tier 2 and the top price equal to tier 1.
The formula
Worked example
Using the default values shown in the calculator:
| Units used this month (kWh) | 450 |
|---|---|
| Tier 1 size (first kWh) | 200 |
| Tier 1 price per kWh | $0.12 |
| Tier 2 size (next kWh) | 200 |
| Tier 2 price per kWh | $0.16 |
| Price above tiers 1 and 2 | $0.22 |
| Fixed or meter charge per month | $8 |
| Taxes and surcharges | 10 % |
- 450 kWh: 200 × $0.12 + 200 × $0.16 + 50 × $0.22 = $67.00.
- With the $8 fixed charge and 10% tax: $82.50, an average of $0.18 per kWh.
Result:
| Estimated bill | $82.50 |
|---|---|
| Average cost per kWh | $0.18 |
| Energy charges | $67.00 |
| Marginal price of the next kWh | $0.24 |
Frequently asked questions
Why is my average price higher than the tier 1 price?
Units above the first tier cost more, and fixed charges are spread over every unit you used.
Does this work for Pakistan's NEPRA slabs?
Yes for the structure: enter the slab sizes and prices from your bill. Protected and non-protected slab rules can change the whole bill rate, so check the rules on your bill.
Sources and further reading
Related calculators
More in Energy & Environment · All calculators
This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.