How do you calculate the power cost of running a machine?

Multiply power in kW by run hours to get kWh, multiply by the electricity rate, then add fixed fees. At 18 kW for 8 hours, that is 144 kWh; at 0.12 per kWh plus a 10 fee, the run costs 144 x 0.12 + 10 = 27.28.

How is cost per part calculated?

Divide the total run energy cost by units produced. A 27.28 run cost over 850 parts is about 0.032 per part, the energy slice you should fold into your unit cost.

What is included in the demand charge or other fees field?

It is a fixed dollar amount added on top of consumption, used for demand charges, fixed surcharges, or any per-run flat fee. Here a 10 fee lifts the 17.28 of pure energy to a 27.28 total.

How much does electricity add to my part cost?

It depends on draw and output, but the per-part figure makes it concrete. In this example energy is about 0.032 per part; on high-draw or low-volume runs that number climbs fast and can matter at quote time.

Why use average hourly cost?

It normalizes spend to a per-hour basis for comparing machines or shifts. Here 27.28 over 8 hours is about 3.41 per hour, a quick yardstick for relative running cost independent of run length.

Does this account for time-of-use electricity rates?

No, it uses one flat rate. If you run partly on peak and partly off peak, compute each window separately or use a blended rate, since the flat-rate result will not capture time-of-use swings.

Energy calculator

Machine Power Cost Calculator

Power cost is the electricity bill for running a machine through a job, broken down to total cost, energy used, and crucially cost per part. Maintenance, reliability, and operations teams use it to load energy into part costing, compare machines, and justify efficiency upgrades. It matters because electricity is often an invisible per-part cost that quietly erodes margin, and on energy-intensive equipment it can rival labor or tooling. Separating the per-run total from the per-part figure lets you see both the shift-level spend and the unit economics that feed into quoting.

What this calculator does

Estimate electricity usage and operating cost per run, shift, or part.
Use when energy cost belongs in the production estimate.
It computes total energy used in kWh, the run energy cost including fixed fees, and the resulting cost per part.

Formula used

kWh = kW × run hours
Energy cost = kWh × electricity rate + fees
Cost per part = energy cost ÷ units

Inputs explained

Machine power: undefined
Run time: undefined
Electricity rate: undefined
Demand charge / other fees: undefined
Units produced: undefined

How to use the result

Use it when loading energy into part cost, comparing the running cost of two machines, or building the case for an efficiency or off-peak-scheduling change.
It uses a single average kW draw and a flat energy rate; machines with variable load profiles or time-of-use and tiered tariffs will see real costs differ from this steady-state estimate.

Current U.S. benchmarks

As of Apr 2026, industrial electricity averages 8.7 cents per kWh across the U.S. (EIA), up 5.5% from a year earlier. State averages range widely, so plants should confirm against their own tariff.
U.S. manufacturing runs at 75.6% of capacity (Federal Reserve, May 2026). New factory orders are up 2.3% year over year (Census).

Common questions

How do you calculate the power cost of running a machine? Multiply power in kW by run hours to get kWh, multiply by the electricity rate, then add fixed fees. At 18 kW for 8 hours, that is 144 kWh; at 0.12 per kWh plus a 10 fee, the run costs 144 x 0.12 + 10 = 27.28.
How is cost per part calculated? Divide the total run energy cost by units produced. A 27.28 run cost over 850 parts is about 0.032 per part, the energy slice you should fold into your unit cost.
What is included in the demand charge or other fees field? It is a fixed dollar amount added on top of consumption, used for demand charges, fixed surcharges, or any per-run flat fee. Here a 10 fee lifts the 17.28 of pure energy to a 27.28 total.
How much does electricity add to my part cost? It depends on draw and output, but the per-part figure makes it concrete. In this example energy is about 0.032 per part; on high-draw or low-volume runs that number climbs fast and can matter at quote time.
Why use average hourly cost? It normalizes spend to a per-hour basis for comparing machines or shifts. Here 27.28 over 8 hours is about 3.41 per hour, a quick yardstick for relative running cost independent of run length.

Last reviewed 2026-05-12.