Electricity Tariff
Compare electricity pricing plans & tariffs from different providers. Calculate costs based on your usage patterns. Switch & save on energy bills.
Provider A
Provider B
About Electricity Tariff
Free Online Tool
Electricity Tariff Comparison
Enter the rate per unit and fixed service charge for two electricity tariffs — get an exact monthly cost comparison at your actual usage level and a clear recommendation on which tariff saves you more money.
How to Use This Tool (30 Seconds)
- 1Label Each Tariff: Name Tariff A and Tariff B — for example 'Current Provider' vs 'New Provider', or 'Standard Rate' vs 'Off-Peak Plan'. Clear labels make the cost comparison immediately readable.
- 2Enter Rate per Unit: Input the cost per kilowatt-hour (kWh) for each tariff in dollars. Find this on your electricity bill under 'Unit Rate,' 'Energy Charge,' or 'Variable Rate.' It is the figure that changes with your usage.
- 3Enter Fixed Service Charge: Input the monthly fixed charge for each tariff — the flat fee you pay regardless of how much electricity you use. This appears on bills as 'Service Charge,' 'Standing Charge,' or 'Daily Supply Charge' multiplied by 30.
- 4Enter Your Monthly Usage: Input your average monthly electricity consumption in kWh. Find this on your current bill under 'Total Usage' or 'Units Consumed.' The tool uses this single figure to calculate the true monthly cost of both tariffs at your actual consumption level.
- 5Read the Cost Comparison: The tool calculates the total monthly and annual bill for both tariffs and identifies the cheaper option, the monthly saving, and the breakeven usage point where the cheaper tariff switches.
The Tariff Cost Formula and Breakeven Calculation
Every electricity bill is calculated using the same two-component formula regardless of provider. The tool applies this formula to both tariffs and adds a breakeven usage calculation — the exact monthly kWh at which the cheaper tariff switches:
// Monthly electricity cost formula
monthlyCost = (unitRate × monthlyKWh) + fixedCharge
// Annual cost projection
annualCost = monthlyCost × 12
// Monthly saving between two tariffs
monthlySaving = costA − costB (positive = A is more expensive)
// Breakeven usage — where both tariffs cost the same
breakevenKWh = (fixedChargeA − fixedChargeB) ÷ (unitRateB − unitRateA)
// Example: Tariff A = $0.28/kWh + $15 fixed
// Tariff B = $0.22/kWh + $25 fixed
breakevenKWh = (15−25) ÷ (0.22−0.28) = −10 ÷ −0.06 = 167 kWh/month
Below 167 kWh → Tariff A cheaper | Above 167 kWh → Tariff B cheaper
The breakeven calculation is the most critical output the tool provides — and the one most energy comparison sites omit. A tariff with a lower unit rate but higher fixed charge is only cheaper above a specific usage threshold. Low-consumption households (under 300 kWh/month) frequently overpay by switching to a lower unit rate tariff that carries a higher fixed charge — the fixed charge dominates their bill more than the unit rate savings.
Tariff Structure — How Usage Level Changes the Better Choice
| Monthly Usage | Household Type | Best Tariff Structure | Why |
|---|---|---|---|
| < 200 kWh | Single person, minimal use | Low fixed charge priority | Fixed charge dominates bill — unit rate matters less |
| 200–400 kWh | Small household, average use | Balance both components | Both components contribute roughly equally to total |
| 400–700 kWh | Family home, moderate use | Low unit rate priority | Variable component dominates — fixed charge is minor |
| 700–1,000 kWh | Large home, AC or EV | Lowest unit rate available | Every $0.01/kWh difference saves $7–$10/month |
| > 1,000 kWh | High consumption, business | Negotiate bulk or TOU rate | Time-of-use tariffs often cheapest above 1,000 kWh |
Usage tiers based on US EIA residential electricity consumption data (2024). Average US household consumes approximately 886 kWh/month. Actual usage varies significantly by climate zone, home size, and appliance efficiency.
⚡ Pro Tip
The monthly saving figure the tool shows looks small — $8, $12, $15 per month — but always check the annual saving and the 3-year projection before dismissing a tariff switch. A $12 monthly saving is $144 annually and $432 over a standard 3-year contract period — from a single 10-minute comparison and one phone call to switch providers. The fixed charge is the most commonly overlooked component when comparing tariffs — many households pay $10–$20 more per month in fixed charges than necessary because they only compared unit rates when switching. Always enter both components for an accurate result.
Disclaimer: This tool is for informational and estimation purposes only. Electricity cost calculations are based on user-entered tariff data and do not account for tiered pricing structures, time-of-use rate variations, taxes, levies, or seasonal tariff changes. Actual bills may differ from estimates. Verify current tariff rates directly with your electricity provider before making switching decisions.
Frequently Asked Questions
Q: Where do I find the rate per unit on my electricity bill?
Look for a line item labeled 'Energy Charge,' 'Unit Rate,' 'Variable Charge,' or 'Price per kWh' on your bill. It is expressed in cents or dollars per kWh. If your bill shows a tiered rate — one rate for the first 500 kWh and a different rate above that — enter the blended average rate or the tier that covers most of your usage.
Q: What is included in the fixed service charge?
The fixed charge covers infrastructure costs — meter reading, grid maintenance, billing administration, and network access fees. You pay it whether you use zero or 2,000 kWh that month. It appears on bills as 'Service Charge,' 'Standing Charge,' 'Daily Supply Charge' (multiply by 30 for monthly), or 'Customer Charge.'
Q: Why does the breakeven point matter when comparing tariffs?
The breakeven point tells you exactly at what monthly usage level the cost advantage switches from one tariff to the other. If your usage is near the breakeven point, both tariffs cost nearly the same and switching is not worth the administrative effort. If your usage is far above or below it, the cheaper tariff at your usage level produces clear, consistent savings every month.
Q: Can I use this tool to compare time-of-use (TOU) tariffs?
TOU tariffs charge different rates at different hours — peak and off-peak. This tool compares flat-rate tariffs using a single unit rate. For TOU comparison, calculate your blended effective rate first: weight each TOU rate by the percentage of your consumption that falls in that period, then enter the blended result as the unit rate for a directional comparison.
Q: How do I find my monthly kWh consumption?
Your monthly kWh usage is printed on every electricity bill under 'Total Usage,' 'Units Consumed,' or 'kWh Used This Period.' For a more accurate annual average, add up 12 months of usage and divide by 12 — seasonal variation from heating and cooling can make any single month unrepresentative of your true baseline.
Q: Is a lower unit rate always better even with a higher fixed charge?
No — and this is the most common tariff switching mistake. A lower unit rate only wins above the breakeven usage threshold. Below that point, the higher fixed charge offsets and exceeds the unit rate saving. The tool's breakeven calculation tells you exactly where that threshold sits for the two tariffs you are comparing, so you can make the decision based on your actual consumption rather than the unit rate alone.
Q: How much can I realistically save by switching electricity providers?
Based on EIA and Ofgem consumer switching data, households that actively compare and switch tariffs save between $100–$400 annually in deregulated markets depending on usage and prior tariff. High-consumption households above 800 kWh/month consistently achieve the largest savings because every cent per kWh difference scales with usage volume. Low-usage households under 300 kWh/month see smaller unit-rate savings but can still benefit significantly by targeting lower fixed charges.