How To Calculate Electricity Bill (Explained With Example)

Electricity bill calculation is an “easy-to-do-task” now. You can calculate your home or workplace utility bill on your own by following a simple rule. This article is about how you can check or calculate the accurate electricity bill that you used. We will first follow a rule to calculate the electricity bill, and then we can use it to calculate the electricity bill at home or anywhere. So, let’s start the process step by step.

Table of Contents

Calculate Electricity Bill On Your Own

The rule we need to follow to calculate electricity bills, here is the rule is given below. First, know all the terms of the calculation rule, then go for the next step.

Net bill = Usages Energy Bill + Meter Bill

Here, Energy Bill = Amount of units used per month (kWh) × Price per unit.
Meter bill = Demand Charge + Service Charge
Demand Charge = 15 TK
Service charge = 10 TK for single-phase, 30 TK for three-phase
VAT = 5% of your Net Bill

If you don’t pay the bill within the fixed time, you have to pay an extra 5% of the total bill in the next month as a fine.

Electricity Load Calculation

We know Net Bill = Energy Bill + Meter Bill from the above discussion.

To know the energy bill, first, we need to know the number of units used per month (kWh) and the price per unit. Then we can say that 90% of our work is done.

To know the number of units used in a month, we need to calculate the load; it depends on what loads we are using and how many watts those loads are.

Remember those points below:

If the load is given in watts, then it is W. Here, W means watt.
If given in horsepower, say a power runs in 2.5HP. You have to Multiply 746 with 2.5, which means you are converting HP to W.
The converts W (Watt) to kWh (Kilowatt). Divided W by 1000 to convert it to kilowatts.
Multiply kW by time (hours) to get usages unit numbers.

I will try to make it clear in the next step with a month’s electricity usage calculation. See the calculation carefully.

Home Electricity Bill Calculation

Let’s try to clear the electricity bill calculation process through an example of math.

Suppose you have 2 fans of 80 watts, 3 lights of 40 watts, 220V, 0.4A, 0.8 μF television, and a 2HP water pump in your home that runs for an average of 6 hours daily. So what will be the electricity bill for April if the bill price per unit is BDT 6.5 TK?

2 fans of 80 watts that will consume watts in 1 day = 80 × 2 = 160W
For 3 lights of 40 watts that watt consumption in 1 day = 40 × 3 = 120W
For television, P = VICosϕ = 220 × 0.4 × 0.8 = 70.4W
2HP motor that will consume watts in 1 day 2 × 746 = 1492W

But our loads will not last 24 hours a day. It will only last 6 hours which we have seen in the example.

So the total watt consumption in 1 day is = (120W + 160W + 70.4W + 1492W) × 6 = 1842.4W × 6 = 11,054.4 W.

We know that if we divide watts by 1000, we will get kilowatts (kWh).
So, the cost per kilowatt in 1 day is = 11,054.4/1000 = 11.0544 kWh.

For full month bill, there are 30 days in April, so total usages unit of April will be 11.0544kWh × 30 = 331.632 kWh or 331.632 unit.

The price per unit is given BDT 6.5. So April’s electricity bill will be = 331.632 × 6.5 = 2,155.608 TK.

Actual Calculation

The recently completed calculation is just a mathematical solution from the textbook. Now, what if I want to calculate it for a real bill? There are some other things to consider. Don’t forget about the rule I gave in the beginning.

If we consider the bill of DESCO, 1-75 unit costs 3.8TK, 76-200 unit costs 5.14TK, 201-300 Unit costs 5.36TK, and 300 unit costs 5,63TK.

Now, based on the usages electricity unit of April:

1 to 75 = 75 Units
76 to 200 = 125 Units
201 to 300 = 100 Units
301 to 331.632 = 31.632 Units

Total = 75 + 125 + 100 + 31.632 = 331.632 Units.

So the bill will be (based on the variation of the price per unit) = (75 × 3.8) + (125 × 5.14) + (100 × 5.36) + (31.632 × 5.63) = 1631.588 TK.
Service Charge = 10 TK
Demand Charge = 15 TK
VAT = 5%

Now, we know, Meter Bill = Demand Charge + Service Charge = 15 + 10 = 25 TK.
Total Bills = (1631.588+ 25) = BDT 1656.588 without VAT.
5% VAT = 1628.62 × 5% = 82.8294 TK
Meter Cost = 40 TK

Then Net Bill will be = BDT 1656.588 + 82.8294 + 40 = 1779.41 TK

Remember: If you fail to pay the bill in time, you will have to pay an additional charge of 5% of your bill.

So, I think now everything is clear to you. To be more specific, I made part of the article. The calculation could be mistaken; whatever, the rule is correct. If you face any problems, leave a comment. Thank you for reading.