Commercial Electricity Cost & Savings Calculator
Use this free calculator to estimate your annual commercial electricity cost, model your demand charges, and see how much you could save on the supply portion of your bill. Enter what you know—even a rough monthly spend is enough to start—and compare your current rate against a quoted or target rate. Everything runs in your browser; nothing is stored or sent anywhere.
Estimate Your Cost & Savings
Free, no obligation. We show every supplier quote by name.
Estimates are for illustration only and use the supply portion of your bill. Actual pricing depends on your utility, load profile, contract structure, and market timing. Delivery/distribution charges are regulated and not included in the savings estimate.
How the Calculator Works
The math behind your commercial electricity cost is simpler than the bill makes it look. There are two main components you can influence, and the calculator models both.
1. Supply (energy) cost
Your supply cost is your usage multiplied by your rate:
Annual supply cost = monthly kWh × 12 × (rate in ¢ ÷ 100)
For example, a facility using 20,000 kWh per month at 9.0¢/kWh pays 20,000 × 12 × $0.09 = $21,600 per year in supply. If a competitive quote comes in at 7.5¢/kWh, the projected cost drops to $18,000—an annual saving of $3,600, or about 17%. This is the portion of your bill you can actually shop in a deregulated market.
2. Demand charge
If you entered a peak demand and a demand rate, the calculator adds your demand-charge exposure:
Annual demand cost = peak kW × demand rate ($/kW) × 12
Demand charges bill your highest sustained draw, not your total usage, and for many facilities they represent 30–50% of the bill. They are reduced through operational changes and peak management rather than rate shopping—see our demand charge reduction playbook.
If you only know your dollar spend
Switch the calculator to "$ spend" mode and it estimates your usage by dividing your monthly bill by an assumed all-in rate, then separates the supply portion. This is a rough approximation—your actual usage is printed on every bill as "kWh"—but it is enough to gauge the opportunity before you pull the exact numbers.
What This Estimate Does and Doesn't Include
The savings figure reflects only the competitive supply portion of your bill—the part you can change by choosing a supplier. It does not include regulated delivery/distribution charges, taxes, or utility riders, which are the same regardless of who supplies your energy. That is intentional: it keeps the estimate honest by showing savings only where savings are actually possible. To understand every line on your bill, read our guide to reading a commercial electric bill.
The calculator also cannot see the two things that most affect a real quote: your load profile (when you use energy, not just how much) and market timing (forward prices move daily). A real competitive process—ideally a reverse auction across multiple suppliers—prices those precisely. Think of this tool as a fast reality check, and a real quote as the confirmation.
Turn an Estimate Into Real Savings
Once the calculator shows a savings opportunity worth pursuing, the next steps are straightforward:
- Pull your exact numbers. Grab 12 months of kWh and your current supply rate from recent bills.
- Get competitive quotes. Use a letter of authority so suppliers price your real load, and compare offers apples-to-apples.
- Choose the right structure. Decide between fixed, index, or block-and-index based on your risk tolerance.
- Lock and protect the renewal. Time your lock and avoid rolling onto a default—see the auto-renewal trap.
Average commercial electricity prices by state, published by the U.S. Energy Information Administration, are a useful sanity check on whether your current rate is high for your market.
Frequently Asked Questions
How do I calculate my commercial electricity cost?
Multiply your monthly kWh usage by your supply rate in dollars per kWh, then by 12 for the year. For example, 20,000 kWh/month at 9¢/kWh is 20,000 × 0.09 × 12 = $21,600/year in supply. Add demand charges by multiplying peak kW by the demand rate per kW, times 12. This calculator does both automatically.
What is a demand charge and how is it calculated?
A demand charge bills your highest sustained kW draw in the month, times a $/kW rate—independent of total usage. A 150 kW peak at $12/kW is $1,800/month, or $21,600/year. For many facilities, demand charges are 30–50% of the bill and are reduced through peak management rather than supplier shopping.
How much can my business save by switching suppliers?
Qualified commercial customers commonly save 10–25% on the supply portion by moving to competitive supply and optimizing contract timing, though it varies by state, load profile, and current rate. Entering a real quoted rate gives the most accurate estimate; leaving it blank shows the typical range.
Is this calculator accurate for my exact bill?
It is a fast estimate of the shoppable supply portion, not a quote. It cannot see your load profile or live market prices, and it excludes regulated delivery charges. Use it to gauge whether savings are worth pursuing, then get a real competitive quote to confirm the exact number.
Do I need my usage in kWh to use it?
No. If you only know your monthly dollar spend, switch to "$ spend" mode and the tool estimates your usage. For a precise result, your actual usage is printed as "kWh" on every electric bill.
Does the estimate include delivery and taxes?
No. The savings estimate covers only the competitive supply charge you can change by choosing a supplier. Regulated delivery/distribution charges, taxes, and utility riders are excluded because they stay the same regardless of your supplier.
See What You Could Actually Save
A calculator estimates; a competitive process confirms. At Jaken Energy, we pull your real load, run multiple suppliers, and show every quote by name so you can see the genuine savings for your facility. Contact our team for a no-obligation analysis, get quotes now with Get My Rates, or keep learning in our Knowledge Hub.