Fictional worked example

Recalculate service charges and tax

A homeowner is checking whether the tax on a sample electricity statement was applied after the monthly service fee was added.

Open Calculator

Inputs and calculation

Taxable service fee
Tool inputValue
CurrencyUSD
UtilityElectricity (kWh)
Metered usage325
Tariff typeFlat rate
Price per billing unit (USD)0.2
Service fee (USD)15
Tax on usage plus service fee (%)8

Usage is 325 × 0.20 = 65.00. Tax is (65 + 15) × 0.08 = 6.40.

Tool result · USD 86.40

Fee waived
Tool inputValue
CurrencyUSD
UtilityElectricity (kWh)
Metered usage325
Tariff typeFlat rate
Price per billing unit (USD)0.2
Service fee (USD)0
Tax on usage plus service fee (%)8

65 × 1.08 = 70.20.

Tool result · USD 70.20

What the comparison shows

A 15.00 fee waiver changes the total by 16.20 because it also reduces tax by 1.20.

Assumptions and limits

Some jurisdictions tax only selected charges. Enter a tax percentage here only when its base is usage plus the entered fee.

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