Tiered Utility Rate Calculator

About this calculator

Under tiered (block) pricing, usage is split into successive bands — for example 0–300 kWh at one rate, 301–600 kWh at a higher rate, and anything above that at a higher rate still — and each portion of consumption is billed at its own tier's price before being summed together, plus any fixed monthly fee. The total bill is therefore not simply usage × one rate, but the sum of each tier's (usage in that tier) × (that tier's rate).

Utility customers checking a bill, and analysts modeling how a progressive electricity or water tariff scales with consumption, use this calculation to see exactly how much of their usage falls into each pricing band and how a change in consumption would shift the total cost — a structure many utilities use to encourage conservation by charging heavier users a higher marginal rate.