The formula
Cost = watts × hours ÷ 1,000 × price per kWh
This is the Department of Energy's method. DOE's own example: a 1,500 W kettle used 1 hour a day for a year uses 547.5 kWh, which costs $60.23 at 11¢/kWh. At today's U.S. average of 18.16¢, the same kettle costs $99.43 a year.
Cost per hour by wattage
At the U.S. average residential rate for August 2026.
| Wattage | kWh per hour | Cost per hour | 8 h a day for a month |
|---|---|---|---|
| 10 W | 0.01 | $0.00 | $0.44 |
| 60 W | 0.06 | $0.01 | $2.62 |
| 100 W | 0.1 | $0.02 | $4.36 |
| 500 W | 0.5 | $0.09 | $21.79 |
| 1,000 W | 1 | $0.18 | $43.58 |
| 1,500 W | 1.5 | $0.27 | $65.38 |
| 3,000 W | 3 | $0.54 | $130.75 |
| 5,000 W | 5 | $0.91 | $217.92 |
Phantom loads
Many electronics keep drawing a little power when switched off: TVs, consoles, chargers, microwaves with clocks. A few watts around the clock add up: 5 W continuously is 3.65 kWh a month. Plugging them into a power strip you switch off removes that load.