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Electricity Cost Calculator
Calculate the cost of running any electrical appliance per hour, day or year.
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Updated for the 2025/26 UK tax year.
About the Electricity Cost Calculator
Knowing exactly what each appliance costs to run is one of the quickest ways to take control of a UK electricity bill. Under the Ofgem Energy Price Cap for Q1 2025, the typical capped unit rate sits around 24.5p per kWh with a daily standing charge of roughly 60p, although the precise figures vary across the 14 Ofgem regions — London tends to have the lowest standing charges while North Scotland has some of the highest unit rates. Domestic gas and electricity carry a reduced 5% VAT rate (compared with the 20% standard rate), so the prices you see on bills already include that VAT.
Our Electricity Cost Calculator translates appliance wattage and usage time into a clear cost per hour, day, week, month and year. Enter the wattage shown on the appliance label (or the rating plate on the back), the hours you use it each day, and your unit rate — the calculator does the rest. If you do not know your unit rate, use the Ofgem default of 24.5p/kWh for a quick estimate. Big-ticket items in a typical UK home include the electric shower, tumble dryer, kettle, oven and any always-on devices such as routers, set-top boxes and games consoles.
The calculator is especially useful before buying a new appliance: comparing the running cost of an A-rated heat pump tumble dryer (around £40/year) versus a vented dryer (£100+/year) often justifies a higher purchase price within two to three years. It also helps quantify the saving from switching to LED lighting, replacing an old fridge-freezer, or shifting EV charging and laundry to off-peak Economy 7 hours. The Ofgem cap is reviewed quarterly in January, April, July and October, so update your unit rate after each cap change for accurate figures.
How to use this calculator
1
Find the appliance wattage
Check the rating label on the appliance or its power adapter. Wattage is shown as W (watts) or kW (kilowatts). If only amps are listed, multiply amps by 230 (UK mains voltage) to get watts.
2
Estimate daily usage hours
Work out how long the appliance is in use each day on average. For intermittent devices like fridges, use the annual kWh figure from the energy label divided by 365.
3
Enter your unit rate
Use the unit rate (p/kWh) from your latest bill, in-home display or supplier app. If unknown, use the current Ofgem cap rate of around 24.5p/kWh for electricity.
4
Review the cost breakdown
The calculator shows running cost per hour, day, week, month and year. Compare against alternative appliances or usage patterns to identify savings.
5
Plan changes
Use the figures to decide whether to replace high-cost appliances, shift usage to off-peak Economy 7 hours, or invest in insulation that reduces electric heating demand.
Common mistakes to avoid
!Comparing unit rate alone — standing charge often adds £400+/year regardless of usage. Compare TOTAL cost.
!Assuming the Ofgem cap is a tariff — it caps the rates a supplier CAN charge on default tariffs; fixed deals can be cheaper.
!Ignoring the regional unit rate differences — North Scotland electricity is ~15% more expensive than London for the same usage.
!NI uses Domestic Rates not Council Tax — calculated as capital value × district rate, not band-based.
How much does electricity cost per unit in the UK?
Under the Ofgem price cap for Q1 2025, the unit rate for electricity is approximately 24.5p per kWh with a standing charge of around 61p per day.
How do I calculate electricity cost?
Multiply the appliance wattage by hours used, divide by 1000 to get kWh, then multiply by the unit rate. For example: 1000W appliance × 1 hour ÷ 1000 × 24.5p = 24.5p.
What is the Ofgem price cap and how often does it change?
The Ofgem price cap limits the maximum unit rate and standing charge suppliers can charge customers on default tariffs. It is reviewed quarterly in January, April, July and October, reflecting wholesale energy prices, network costs and policy levies. The cap protects around 28 million households across the UK from extreme price spikes.
Why do standing charges vary across the UK?
Standing charges differ across the 14 Ofgem distribution regions because each network operator has different infrastructure costs, customer densities and policy levies. London tends to have the lowest standing charges due to dense customer numbers, while North Scotland and Merseyside often see the highest, sometimes exceeding 70p per day for electricity in 2025.
Is VAT charged on UK electricity bills?
Yes, domestic electricity carries a reduced VAT rate of 5%, far lower than the standard 20% VAT on most goods. This reduced rate also applies to gas, heating oil and solid fuels for home use. The 5% VAT is already included in the unit rate and standing charge shown on your bill, so no separate calculation is needed.
Which household appliances use the most electricity?
Electric showers (8-10 kW), tumble dryers (2-3 kW), ovens (2-3 kW), kettles (2-3 kW), washing machines (2 kW) and electric heaters draw the most power. Always-on devices like fridge-freezers, routers, set-top boxes and game consoles in standby can also add up, often costing £80-£150 a year combined despite low individual wattage.
How can I reduce my electricity bill in the UK?
Switch to LED bulbs (saving around £75/year on lighting), wash clothes at 30°C, fit a smart thermostat (around £100/year per 1°C lower), unplug standby devices, run dishwashers and washing machines on eco settings, and shift heavy usage to Economy 7 night hours if you have that tariff. Check eligibility for Warm Home Discount and ECO4 grants.
What is Economy 7 and is it worth it?
Economy 7 is a dual-rate tariff offering cheaper electricity for 7 hours overnight (typically 12.30am-7.30am) and a higher day rate. It suits households with storage heaters, immersion water heaters or EV chargers running overnight. If 40%+ of your usage falls in night hours it usually saves money; for daytime-heavy households a single-rate tariff is cheaper.
How do I read my electricity meter?
For a digital meter, read the numbers from left to right ignoring any after the decimal point or in red. For Economy 7 meters, take both day and night readings (often labelled rate 1 and rate 2). Smart meters send readings automatically but you can view current usage on the in-home display. Submit readings monthly to avoid estimated bills.
Why has my electricity bill increased so much?
UK electricity prices rose sharply after the 2022 energy crisis when wholesale gas prices spiked following the invasion of Ukraine, and gas sets the UK electricity wholesale price most of the time. Although prices have fallen from 2022 peaks, the cap remains well above pre-2021 levels due to network costs, policy levies and gas market volatility.