Price extra use across an electricity tier
A household is close to its 300 kWh block limit and wants to price 30 kWh of additional use before hosting visitors.
Open CalculatorInputs and calculation
| Tool input | Value |
|---|---|
| Currency | USD |
| Utility | Electricity (kWh) |
| Metered usage | 290 |
| Tariff type | Tiered rate |
| Cumulative upper limit, price per unit | 300, 0.16 *, 0.30 |
| Service fee (USD) | 10 |
| Tax on usage plus service fee (%) | 0 |
290 × 0.16 + 10 = 56.40.
Tool result · USD 56.40
| Tool input | Value |
|---|---|
| Currency | USD |
| Utility | Electricity (kWh) |
| Metered usage | 320 |
| Tariff type | Tiered rate |
| Cumulative upper limit, price per unit | 300, 0.16 *, 0.30 |
| Service fee (USD) | 10 |
| Tax on usage plus service fee (%) | 0 |
300 × 0.16 + 20 × 0.30 + 10 = 64.00.
Tool result · USD 64.00
What the comparison shows
The first 10 extra kWh cost 1.60 and the remaining 20 cost 6.00. Charging all 30 at the top rate would overstate the difference.
Assumptions and limits
This is an increasing block tariff. Earlier units retain their original rate when usage crosses the boundary.
Related guides and examples
- How to calculate an electricity bill
- Understanding tiered utility rates
- Read the units on your water bill
- How time-of-use electricity pricing changes your costs
- Checking a rate change partway through a bill
- Why sewer charges may not follow this month’s water use
- Four-person tiered water bill
- Investigate the residual from a higher electricity block
- Price the marginal units when a leak crosses a water tier