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Air Conditioner Running Cost Calculator (Cooling, Heating and Yearly Cost from kWh)

Enter the seasonal energy use (kWh) of your air conditioner or heat pump and your electricity rate. To see the cost after a thermostat change, also enter the change (°C).

The calculator uses a cooling season of 135 days (May 23 to Oct 4), a heating season of 160 days (Nov 8 to Apr 16) and 1 month = 30.44 days (the seasons come from the Japanese test standard for air conditioners, JIS C 9612). Each season's cost is rounded to the cent before the costs are added. If the savings rates are blank, 13% for cooling and 10% for heating per °C are used as rough values (10% if you enter the yearly total only).
Result and graph
Enter the seasonal energy use (kWh) and your electricity rate on the left and press "Calculate". The result and a graph will appear here.

What you can do on this page

  • Enter the seasonal energy use of your air conditioner or heat pump (kWh for the cooling season and the heating season, or the yearly total) and your electricity rate, and you instantly get the cost for cooling, heating and the whole year
  • It also shows the average cost per month and per day for the cooling season (May 23 to Oct 4) and the heating season (Nov 8 to Apr 16)
  • You can estimate how much you save by setting the thermostat a few degrees higher for cooling and lower for heating, from a savings rate per degree (a rough value that you can change)
  • A bar chart compares the cooling, heating and yearly costs (with the costs before and after a thermostat change side by side)
  • How to find the kWh from the EnergyGuide label or the SEER2 and HSPF2 ratings, a plain-language explanation of the formulas, and copy-and-paste formulas for Excel, Google Sheets and Python are all on this page
Seasonal energy use is the amount of electricity (kWh) a unit uses in one cooling or heating season. In the US you can find it from the yearly kWh on the EnergyGuide label, or estimate it from the capacity, the hours of use and the efficiency rating (see "How the formula works"). The real cost depends a lot on your climate, your home and how you use the unit, so it is best used to compare models under the same conditions. To calculate cost from the wattage and hours of use instead, the electricity cost calculator in the related pages is a better fit.

What is this calculation used for?

Working out how many years an efficient model takes to pay back its higher price

Two air conditioners of the same size can use quite different amounts of electricity. If a basic model uses about 600 kWh a year and an ENERGY STAR model about 480 kWh, at $0.17 per kWh the difference is \((600 - 480) \times 0.17 = 20.40\) dollars a year, or about $204 over 10 years (all rough values).
Put the difference in price next to this yearly difference in cost, and you can think about "how many years until the extra cost pays for itself" with numbers instead of a hunch. Values measured under the same test conditions are the best way to compare models.

Knowing in advance how much your summer and winter bills will go up

For a unit that uses 500 kWh for cooling and 1,000 kWh for heating, at $0.17 per kWh the cooling season costs about $85 (about $19 a month) and the heating season about $170 (about $32 a month).
Knowing that heating tends to cost more than cooling, and that "heating adds about $30 a month in winter", helps you avoid surprises when the bill comes. Treat it as a guide for homes of similar size and insulation.

Checking what a thermostat change saves before you put up with it

For $170 of heating, setting the thermostat 2°F lower saves about \(170 \times 2 \times 0.03 = 10.20\) dollars with the default 3% per °F. For $85 of cooling, setting it 2°F higher saves about \(85 \times 2 \times 0.03 = 5.10\) dollars. That is about $15 a year. With the larger values quoted in some guides (about 7.2% per °F for cooling and 5.6% for heating), it is about $31.
Knowing that "2 degrees is worth roughly $15 to $30 a year" helps you decide whether the change is worth it, or encourages you to combine it with warmer clothes or a fan. The savings rate depends on your home, so look at it as a range.

Estimating the cost of the AC in a rental or older home before you move in

If you know the model number of the unit that comes with the home, look up its EnergyGuide label or ratings online and use this formula to estimate the yearly cost. An old, inefficient unit can use 1,200 kWh or more a year, which is \(1{,}200 \times 0.17 = 204\) dollars or more.
This helps you catch cases like "the rent is low but the air conditioner is expensive to run", and gives you a reason to ask the landlord for a newer unit if needed.

Estimating the air conditioning cost of a small shop or office

If a small shop or office uses several home-size units, add up the kWh of all the units and multiply by the rate for a rough yearly air conditioning cost. For example, three units using about 1,500 kWh a year each come to 4,500 kWh, or \(4{,}500 \times 0.17 = 765\) dollars.
A business with long hours usually uses more than the test assumptions, so treat the result as "at least this much" and use it as a starting point for your utility budget or a plan to replace old units with efficient ones.

Formula

Cost for a season (cooling, heating, year)
Figure
Standard notation (the usual math form)
\(C\) \(=\) \(E\) \(\times\) \(u\)
In words (symbols replaced with words)
③ \(C\): cost for the season ($) \(=\) ① \(E\): seasonal energy use (kWh) \(\times\) ② \(u\): electricity rate ($/kWh)
The formula in words
① Take the \(E\): seasonal energy use (kWh)
② multiply it by the \(u\): electricity rate ($/kWh)
③ and you get the \(C\): cost for the season ($)
Quick example
For a unit that uses 500 kWh in the cooling season, at an electricity rate of $0.17 per kWh, the cooling season cost is
cooling season cost ($) \(=\) cooling season use (500 kWh) \(\times\) rate ($0.17/kWh)
\(500 \times 0.17 = 85\)
Key idea
Seasonal energy use is the amount of electricity used in the season (kWh) itself, so multiplying by the rate gives the cost directly. Unlike working from the wattage, you do not need to multiply by hours and divide by 1,000. If you have separate values for cooling and heating, multiply each by the rate to get the cooling and heating costs, and add them for the yearly cost. If you only have a yearly total, multiplying it by the rate gives the yearly cost directly. Where does the kWh come from? The EnergyGuide label shows the estimated yearly electricity use (kWh) or the yearly cost (cost ÷ the rate on the label gives the kWh). You can also estimate it from the ratings: cooling kWh = capacity (BTU/h) × hours of use ÷ (SEER2 × 1,000), for example 12,000 BTU/h × 500 h ÷ (12 × 1,000) = 500 kWh. For room units, use CEER or EER in place of SEER2. For heat pump heating, kWh = heat needed for the season (BTU) ÷ (HSPF2 × 1,000). This calculator rounds each season's cost to the cent before adding them, so "cooling + heating = year" matches exactly on the screen.
Average cost per month and per day
Figure
Standard notation (the usual math form)
\(C_{\text{mo}}\) \(=\) \(C\) \(\div\) \(M\)
In words (symbols replaced with words)
③ \(C_{\text{mo}}\): cost per month ($) \(=\) ① \(C\): cost for the season ($) \(\div\) ② \(M\): months in the season
The formula in words
① Take the \(C\): cost for the season ($)
② divide it by the \(M\): months in the season (cooling about 4.43, heating about 5.26)
③ and you get the \(C_{\text{mo}}\): cost per month ($)
Quick example
When the cooling season cost is $85 (the example above), the cost per month in the cooling season is
cooling season, per month ($) \(=\) cooling season cost ($85) \(\div\) months in the cooling season (135 days ÷ 30.44 days)
\(85 \div (135 \div 30.44) \approx 19.17\)
Key idea
The months in the season \(M\) are the days in the season \(D\) ÷ 30.44. 30.44 days is the average length of a month: 365.25 days (a year averaged over leap years) divided by 12. The cooling season is 135 days, so \(135 \div 30.44 \approx 4.43\) months, and the heating season is 160 days, so \(160 \div 30.44 \approx 5.26\) months. The cost per day is simply the season cost \(C\) divided by the days \(D\) (135 for cooling, 160 for heating). "Per month" and "per day" are averages over the season. The hottest and coldest months cost more than the average, and the months in between cost less. For the year, two values are shown: the average per month (divided by 12) and the cost per day of use (divided by the 295 days of the cooling and heating seasons together).
Estimated cost after a thermostat change
Figure
Standard notation (the usual math form)
\(C'\) \(=\) \(C\) \(\times\) \((\) \(1\) \(-\) \(\Delta T\) \(\times\) \(\dfrac{r}{100}\) \()\)
In words (symbols replaced with words)
⑤ \(C'\): cost after the change ($) \(=\) ④ \(C\): cost before the change ($) \(\times\) \((\) ③ 1 (100%) \(-\) ① \(\Delta T\): thermostat change (°F) \(\times\) ② \(r\): savings per °F (%) ÷ 100 \()\)
The formula in words
① Take the \(\Delta T\): thermostat change (°F)
② multiply it by the \(r\): savings per °F (%) divided by 100 to get the total share saved
③ subtract that from 1 (100%) to get the share that remains
④ multiply the \(C\): cost before the change ($) by it
⑤ and you get the \(C'\): cost after the change ($)
Quick example
When the heating season cost is $170 (1,000 kWh × $0.17), setting the heating 2°F lower with a savings rate of 5% per °F gives
heating season cost after the change ($) \(=\) cost before the change ($170) \(\times\) \((\) 1 (100%) \(-\) change (2°F) \(\times\) savings rate (5%) ÷ 100 \()\)
\(170 \times \left(1 - 2 \times \dfrac{5}{100}\right) = 170 \times 0.9 = 153\)
Key idea
The savings are "cost before − cost after". In the example above, the heating season savings are \(170 - 153 = 17\) dollars. How much you save per degree is only a rough guide. The US Department of Energy (DOE) says you can save as much as 10% a year on heating and cooling by turning the thermostat back 7°F to 10°F for 8 hours a day. A 10°F change for 8 hours is about the same as a \(10 \times 8 \div 24 \approx 3.3\)°F change all day, so this works out to about \(10 \div 3.3 \approx 3\)% per °F. The calculator uses this 3% per °F as its default value, and US utilities often quote the same figure. Energy-saving guides in Japan quote larger values, about 13% per °C for cooling and 10% per °C for heating (about 7.2% and 5.6% per °F). The DOE also notes that the savings are larger in milder climates. The real rate depends a lot on the model, the insulation, the outdoor temperature and the original setting. You can change the rate freely, so it is safest to estimate a range, such as "the default 3%" and "a higher 5%". This formula is a linear (proportional) rule of thumb: \(r\)% for 1 degree, \(2r\)% for 2 degrees. The bigger the change, the further it can drift from reality, so it is best for changes of a few degrees. A negative change (cooling lower, heating higher) estimates how much the cost goes up.
The running cost of an air conditioner or heat pump is basically "seasonal energy use (kWh) × electricity rate ($/kWh)". Divide the season cost by the months in the season (135 or 160 days ÷ 30.44 days) for a monthly average, and use the thermostat change and a savings rate per degree to estimate the cost and savings after a change.

Symbols and terms

Symbols

\(E\) E Seasonal energy use - the electricity used in the cooling season, the heating season (or the whole year), in kWh (kilowatt-hours). From the first letter of "energy".
\(u\) u The electricity rate - what you pay for 1 kWh ($/kWh). From the first letter of "unit price".
\(C\) C The cost for the season ($), from the first letter of "cost". The same formula is used for cooling, heating and the whole year.
\(D\) D The days in the season. The cooling season is 135 days, the heating season is 160 days, and together they make 295 days of use. From the first letter of "days".
\(M\) M The months in the season: the days \(D\) divided by the average month length of 30.44 days. About 4.43 months for cooling and about 5.26 months for heating. From the first letter of "months".
\(C_{\text{mo}}\) C sub mo The cost per month in the season ($). The small "mo" (month) below the line shows that it is a per-month value.
\(\Delta T\) delta T The thermostat change (°F). \(\Delta\) (delta) is the Greek letter used for "change" or "difference", and \(T\) is for temperature. In this calculator, the energy-saving direction (cooling higher, heating lower) is positive.
\(r\) r The savings rate per degree of thermostat change (%), from the first letter of "rate". The default is 3% per °F for both cooling and heating (a rough value based on the US Department of Energy guide), and you can change it freely.
\(C'\) C prime The cost after the thermostat change ($). The small mark at the top right (prime) is often used for "a slightly changed version of \(C\)".

Terms

seasonal energy use The electricity (kWh) an air conditioner or heat pump uses in one cooling or heating season. Catalogs in Japan list it for every model under the same test conditions. In the US you usually find the yearly kWh on the EnergyGuide label, or estimate it from the capacity, the hours of use and the SEER2, EER, CEER or HSPF2 rating. Because it is measured under set conditions, it is best for comparing models fairly. It is not the exact use in your own home.
EnergyGuide label The yellow label required in the US on many appliances, including room air conditioners, central air conditioners and heat pumps. It shows the estimated yearly energy cost (and, depending on the product, the yearly kWh) along with the efficiency rating, such as CEER for room units or SEER2 and HSPF2 for central systems. The yearly cost is "yearly kWh × the rate stated on the label", the same formula as on this page.
cooling season The period this calculator uses for cooling - May 23 to October 4, 135 days (taken from the Japanese test standard JIS C 9612). The cooling "per month" and "per day" values are based on these days.
heating season The period this calculator uses for heating - November 8 to April 16, 160 days (taken from the Japanese test standard JIS C 9612). The heating "per month" and "per day" values are based on these days.
SEER2 Seasonal Energy Efficiency Ratio 2 - the cooling delivered over a season (BTU) divided by the electricity used (Wh), measured under the US test procedure in use since 2023. The higher, the more efficient. From it you can estimate the kWh: capacity (BTU/h) × hours of use ÷ (SEER2 × 1,000). A 12,000 BTU/h unit run 500 hours with a SEER2 of 12 uses 500 kWh. With a SEER2 of 20, the same cooling takes only 300 kWh.
HSPF2 Heating Seasonal Performance Factor 2 - the heat a heat pump delivers over a heating season (BTU) divided by the electricity used (Wh). The higher, the more efficient. The heating kWh is about the heat needed for the season (BTU) ÷ (HSPF2 × 1,000).
electricity rate The price of 1 kWh of electricity. This page uses $0.17 per kWh as an example, close to the US average residential price in recent years (US Energy Information Administration). Rates vary a lot by state and by plan, so for an accurate result use the rate from your own bill.
kWh (kilowatt-hour) The unit for an amount of electricity used. Using 1 kW (1,000 W) for 1 hour is 1 kWh. Electric bills are based on kWh, and seasonal energy use is in kWh too.
power draw The power (W) an appliance uses while it runs. Spec sheets list it for air conditioners, but an air conditioner lowers its output as the room nears the set temperature, so it is hard to get the cost right from the wattage. Seasonal energy use, which covers the whole season, is better for estimating the cost.
thermostat setting The target room temperature you set on the thermostat or remote. The smaller the gap to the outdoor temperature, the less work the unit does, so a higher setting for cooling and a lower setting for heating lowers the cost. The savings rate per degree is a rough guide to how much.
inverter A system that changes the speed of the compressor motor to fine-tune the output. Most mini-splits and many newer units are inverter models, which slow down as the room nears the set temperature. That is why "maximum wattage × hours" gives a cost that is far too high.

Good to know before you start

Here is what helps you use the calculation on this page with real understanding, not just by pressing the button.
If you get stuck, going back to these topics is the quickest way forward.

Multiplying and dividing decimals (Grades 5–6)
  • Being able to multiply and divide with decimals, as in \(500 \times 0.17\) and \(85 \div 4.43\)
  • Being able to round an answer to the nearest cent (two decimal places)
Percents (Grades 6–7)
  • Being able to turn a percent into a decimal, as in "10% is 0.1 of the whole"
  • Knowing that "10% less" means "90% of the original (0.9 times)"
Averages (Grade 6)
  • Knowing that total ÷ count = average (season cost ÷ months = average per month)
Unit conversion (Grades 4–8)
  • Knowing that k (kilo) means 1,000, so \(1\,\mathrm{kW} = 1{,}000\,\mathrm{W}\)
  • Being comfortable with day counts such as "1 month ≈ 30.44 days" and "1 year = 365.25 days"
Power and energy (middle school science)
  • Telling apart power (W), how fast electricity is used, and energy (Wh, kWh), the total amount of electricity used
  • Knowing that the electric bill is the energy used (kWh) times the rate

How to calculate it in Excel

Copy the whole table below and paste it into cell A1 in Excel. It works as is.
Table to find the cost for each season
Cooling season use (kWh) 500
Heating season use (kWh) 1000
Electricity rate ($/kWh) 0.17
Cooling season cost ($) =ROUND(B1*B3,2)
Heating season cost ($) =ROUND(B2*B3,2)
Yearly cost ($) =B4+B5
Table to find the average per month and per day
Cooling season cost ($) 85
Heating season cost ($) 170
Days in the cooling season 135
Days in the heating season 160
Average days per month 30.44
Cooling season, per month ($) =ROUND(B1/(B3/B5),2)
Heating season, per month ($) =ROUND(B2/(B4/B5),2)
Cooling season, per day ($) =ROUND(B1/B3,2)
Heating season, per day ($) =ROUND(B2/B4,2)
Yearly average per month ($) =ROUND((B1+B2)/12,2)
Table to find the cost after a thermostat change
Cost before the change ($) 170
Thermostat change (°F) 2
Savings per °F (%) 5
Cost after the change ($) =ROUND(B1*(1-B2*B3/100),2)
Savings ($) =B1-B4
After pasting, the upper cells in column B are your inputs and the formula cells are calculated automatically.
The first table is the example of 500 kWh for cooling, 1,000 kWh for heating and $0.17 per kWh: B4 shows 85, B5 shows 170 and B6 shows 255 (dollars). ROUND(…,2) rounds to the cent.
The second table turns the season costs into per-month and per-day values: B6 shows 19.17, B7 shows 32.34, B8 shows 0.63, B9 shows 1.06 and B10 shows 21.25 (dollars). The days in B3 to B5 are the same values the calculator uses, so leave them as they are.
The third table is the thermostat change: for $170 of heating with the thermostat 2°F lower at 5% per °F, B4 shows 153 and B5 shows 17 (dollars). Just replace the numbers in column B with the values for your unit.

How to calculate it in Google Sheets

Copy the whole table below and paste it into cell A1 in Google Sheets. It works as is.
Table to find the cost for each season
Cooling season use (kWh) 500
Heating season use (kWh) 1000
Electricity rate ($/kWh) 0.17
Cooling season cost ($) =ROUND(B1*B3,2)
Heating season cost ($) =ROUND(B2*B3,2)
Yearly cost ($) =B4+B5
Table to find the average per month and per day
Cooling season cost ($) 85
Heating season cost ($) 170
Days in the cooling season 135
Days in the heating season 160
Average days per month 30.44
Cooling season, per month ($) =ROUND(B1/(B3/B5),2)
Heating season, per month ($) =ROUND(B2/(B4/B5),2)
Cooling season, per day ($) =ROUND(B1/B3,2)
Heating season, per day ($) =ROUND(B2/B4,2)
Yearly average per month ($) =ROUND((B1+B2)/12,2)
Table to find the cost after a thermostat change
Cost before the change ($) 170
Thermostat change (°F) 2
Savings per °F (%) 5
Cost after the change ($) =ROUND(B1*(1-B2*B3/100),2)
Savings ($) =B1-B4
The ROUND function and the arithmetic work the same way as in Excel. Copy the whole table, paste it into cell A1, and replace the numbers in column B with your own.

How to calculate it in Python

cooling_kwh = 500          # cooling season use (kWh). 0 if none
heating_kwh = 1000         # heating season use (kWh). 0 if none
price_per_kwh = 0.17       # electricity rate ($/kWh)
delta_temp = 2             # thermostat change (°F; cooling higher / heating lower is positive)
cooling_rate = 3           # cooling savings per °F (%, rough value)
heating_rate = 3           # heating savings per °F (%, rough value)

COOLING_DAYS = 135         # cooling season May 23 - Oct 4
HEATING_DAYS = 160         # heating season Nov 8 - Apr 16
DAYS_PER_MONTH = 30.44     # average days per month

def round_half_up(value, digits=2):
    # Round half up (Python's round() rounds half to even, so do the same rounding as the calculator)
    scale = 10 ** digits
    return int(value * scale + 0.5) / scale if value >= 0 else -int(-value * scale + 0.5) / scale

total_cost = 0
total_after = 0
for label, kwh, days, rate in [("Cooling season", cooling_kwh, COOLING_DAYS, cooling_rate),
                               ("Heating season", heating_kwh, HEATING_DAYS, heating_rate)]:
    cost = round_half_up(kwh * price_per_kwh)                # season cost (rounded to the cent)
    monthly = round_half_up(cost / (days / DAYS_PER_MONTH))  # per month
    daily = round_half_up(cost / days)                       # per day
    after = round_half_up(cost * (1 - delta_temp * rate / 100))  # after the thermostat change
    print(f"{label}: {kwh} kWh / ${cost:.2f} (per month ${monthly:.2f}, per day ${daily:.2f})")
    print(f"  With a {delta_temp} °F change: ${after:.2f} (savings ${cost - after:.2f})")
    total_cost += cost
    total_after += after
print(f"Year: ${total_cost:.2f} (average per month ${round_half_up(total_cost / 12):.2f})")
print(f"  With the change: ${total_after:.2f} (savings ${total_cost - total_after:.2f})")
Runs with the standard library only. Change the first six values (cooling and heating kWh, the rate, the thermostat change and the savings rates) to match your unit and run it. If you only have a yearly total, put it in cooling_kwh and set heating_kwh to 0 to get the yearly cost (in that case the "per month", "per day" and "after the change" values on the cooling line use the cooling season's days and rate, so only read the yearly line).

How to write it in LaTeX and other math languages (copy and paste)

Cost for a season (cooling, heating, year)
C = E × u
C = E \times u
<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <mi>C</mi>
    <mo>=</mo>
    <mi>E</mi>
    <mo>&#xD7;</mo>
    <mi>u</mi>
  </mrow>
</math>
C = E * u
cost = energy*price
cost := energy*price;
cost = energy*price;
C = E×u
Average cost per month and per day
C_mo = C ÷ M
C_{\text{mo}} = C \div M
<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <msub><mi>C</mi><mtext>mo</mtext></msub>
    <mo>=</mo>
    <mi>C</mi>
    <mo>&#xF7;</mo>
    <mi>M</mi>
  </mrow>
</math>
C_"mo" = C / M
monthlyCost = cost/months
monthlyCost := cost/months;
monthlyCost = cost/months;
C_mo = C/M
Estimated cost after a thermostat change
C′ = C × (1 − ΔT × r ÷ 100)
C' = C \times \left(1 - \Delta T \times \frac{r}{100}\right)
<math xmlns="http://www.w3.org/1998/Math/MathML" display="block">
  <mrow>
    <msup><mi>C</mi><mo>&#x2032;</mo></msup>
    <mo>=</mo>
    <mi>C</mi>
    <mo>&#xD7;</mo>
    <mo>(</mo>
    <mn>1</mn>
    <mo>&#x2212;</mo>
    <mi>&#x394;</mi><mi>T</mi>
    <mo>&#xD7;</mo>
    <mfrac><mi>r</mi><mn>100</mn></mfrac>
    <mo>)</mo>
  </mrow>
</math>
C' = C * (1 - Delta T * r/100)
costAfter = cost*(1 - deltaT*rate/100)
costAfter := cost*(1 - deltaT*rate/100);
costAfter = cost*(1 - deltaT*rate/100);
C' = C×(1 − ΔT×r/100)

How to have ChatGPT  do the calculation

You are a calculation assistant for electricity costs. Do the following calculation by actually running Python code, and base your answer only on the numbers from the execution result (do not answer by mental math or guessing).

A heat pump uses 500 kWh in the cooling season and 1,000 kWh in the heating season. The electricity rate is $0.17 per kWh.
The cooling season is 135 days (May 23 to Oct 4), the heating season is 160 days (Nov 8 to Apr 16), and 1 month is 30.44 days.
Find each of the following (round costs to the cent):
1. The cooling season, heating season and yearly cost ($)
2. For the cooling and heating seasons, the cost per month (cost ÷ (days ÷ 30.44)) and per day (cost ÷ days)
3. The cooling season, heating season and yearly cost and the savings when the cooling thermostat is set 2 °F higher (3% less per °F) and the heating thermostat 2 °F lower (3% less per °F)

Show the formulas you used and the numbers from the execution result.

How to Use
  1. 1
    Enter your numbers
    Type the numbers you want to calculate with into the input fields
  2. 2
    Calculate
    Press the "Calculate" button
  3. 3
    Check the result
    The result appears on the spot. The same page also explains the idea behind the calculation and the formula
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