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Use the calculator for an instant estimate, or read on for a full breakdown of how this cost is calculated.
Examples and calculation text checked September 22, 2026. This is a planning guide, not an individual engineering review.
Illustrative example
$288/year
Declared inputs, not a typical-home range
2,000 watts ÷ 1,000 × 6 hours/day × 120 days = 1,440 kWh/year, or $288 at $0.20/kWh. A 30-day cooling month at that runtime would cost $72; the annual average month costs $24.
Use electrical input power, not the system's cooling capacity in tons or BTU/hr. This example deliberately avoids treating SEER as a measurement of instantaneous full-load power.
Equivalent running hours describe energy use at the entered power. They are not necessarily the hours the thermostat is enabled. Weather, cycling, variable-speed operation, building conditions and thermostat settings affect the actual result. The guided household estimate adds documented location and equipment assumptions.
The calculator starts with the same example. Its $24 average-month cost is annual cost divided by 12; seasonal bills can look very different. The $0.20/kWh rate is illustrative, not a national average. Use your energy rate; fixed fees and taxes are separate.
The starting values are an example. Replace them with your equipment and usage.
Use electrical input and equivalent operating hours. Cooling capacity is not electrical input; this simple example does not model local weather, cycling or seasonal efficiency.
1,440 kWh per year
$288.00 per year
$24.00 per average month (annual cost ÷ 12)
Energy charges only. Fixed fees, taxes, tiered and time-of-use billing are excluded. The average month is not a seasonal forecast.
Measured electrical input or a suitable equipment estimate
Equivalent operating hours and cooling-season days
Thermostat schedule and occupancy
Whether a shared heat pump's cooling is already included elsewhere
Before making a change
Check the large loads and uncertain assumptions first. Compare a specific change against your existing equipment before deciding whether an upgrade is worth investigating.
These sources explain units and equipment labels. The worked household values are illustrative inputs, not measured customer data or published typical-use ranges.
Follow the free walkthrough to build a household electricity estimate, review its assumptions and compare changes. The optional $19 purchase unlocks both dated PDF report formats for your household profile.
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