Energy Bill Math

Appliance label guide

How to read an EnergyGuide label

The yellow EnergyGuide label gives you a standardized way to compare appliance energy use, but its printed dollar estimate may not use your electricity price.

Find the annual energy-use number

The most reusable figure is Estimated Yearly Electricity Use, shown in kilowatt-hours per year, or kWh/year. This is the number to enter into a calculator such as our refrigerator electricity cost calculator.

If a refrigerator label lists 500 kWh/year and your electricity rate is $0.17/kWh, the estimated annual electricity cost is 500 × $0.17, or $85.

Understand the estimated yearly cost

The large dollar amount is based on a standardized test and an electricity price printed in the label’s fine print. It is useful for comparing models, but it is not a quote from your utility provider. Recalculate the cost with your own rate when you want a household-specific estimate.

Use the comparison range correctly

The horizontal range compares the model with similar products of the same general type and capacity. A model near the lower-cost end is estimated to use less energy than many comparable models. The range is not meant to compare every refrigerator, dryer, or water heater on the market.

Why actual use may differ

EnergyGuide values come from standardized testing so models can be compared consistently. Your home does not reproduce those exact conditions, so treat the result as a planning estimate.

EnergyGuide versus ENERGY STAR

EnergyGuide provides estimated consumption and comparison information. ENERGY STAR is a separate efficiency certification for products that meet program requirements. A product may display both. For current product information, consult the official ENERGY STAR product directory.

Keep the model-specific documentation

Before making a purchase decision, confirm the exact model number and label. Similar-looking versions may have different capacities, features, and annual kWh figures.