The formula
Units (kWh) = (Watts / 1000) × hours ; Cost = units × rate
- Watts
- appliance power rating
- hours
- running time over the billing period
- rate
- tariff per kWh in your local currency
Worked example
A 1500 W water heater used 2 hours a day for 30 days at ₹7 per unit.
- Power in kW: 1500 / 1000 = 1.5 kW
- Units: 1.5 × 2 × 30 = 90 kWh
- Cost: 90 × 7
90 units costing ₹630 a month — from one appliance.
Where you'll use it
Energy audits, comparing appliances, and checking whether that inverter AC really pays for itself. Note that heating loads dominate: a 1500 W geyser for two hours beats a 60 W fan running all day.