Calculators
Commercial Electricity Bill Calculator
Estimate a commercial electricity bill with energy and demand charges, and calculate the effective rate and load factor.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Understanding a commercial electricity bill
- Estimating savings from peak shaving
- Comparing tariffs
- Budgeting for new equipment
About this tool
What the Commercial Electricity Bill Calculator does
Commercial electricity bills usually charge for energy (kWh) and for peak demand (the highest kW drawn in the month). A short spike in demand can add a large charge for the whole month. Load factor, average demand divided by peak, shows how evenly power is used.
It also works as a commercial utility calculator or a demand charge calculator.
Formula
- Bill = (kWh × energy rate + peak kW × demand rate + fixed charge) × (1 + taxes)
- Effective rate = bill ÷ kWh
- Load factor = kWh ÷ (peak kW × 730 hours)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Monthly energy use | 25,000 kWh |
| Energy rate per kWh | $0.11 |
| Peak demand | 80 kW |
| Demand charge per kW | $15.00 |
| Fixed customer charge | $50.00 |
| Taxes and surcharges | 6% |
| Result | Value |
|---|---|
| Monthly bill | $4,240 |
| Effective rate per kWh | $0.17 |
| Demand charges | $1,200 |
| Energy charges | $2,750 |
| Load factor | 42.8% |
| Demand share of the bill | 30.0% |
How to read the result
A low load factor means a high peak relative to average use. Staggering equipment start-ups and controlling peak loads can cut demand charges significantly.
Tariff structures vary widely; some include time-of-use energy rates or ratcheted demand charges based on past peaks.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
A charge based on the highest rate of power use during the billing period, measured in kW.
Higher is better; it means peak demand is close to average use. Many businesses aim to raise theirs.
Avoid running large loads at the same time, use controls, and consider storage or load shifting.
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- Working since
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