Five cents sounds small. Multiply it by a month of electricity use, though, and that little change deserves a place in your budget.
Piggy’s advice: give the number a name before it becomes a surprise.
Try your numbers in the electricity simulator. It starts with a hypothetical example—not your utility’s current rate or a forecast.
Start with the price change, not the headline
Electricity prices reflect several factors, including fuel costs, power plants, the grid, weather and regulation. A headline about one of those factors does not tell you exactly what your household will pay. EIA’s electricity-price explainer.
For a useful comparison, find your electricity usage and the comparable per-kWh charges on your bill or rate notice. Use the same currency and consistent treatment of charges in both scenarios.
Our example assumes a simple variable charge. It excludes fixed charges, taxes, credits, tiered pricing and other bill adjustments.
What could five cents mean?
Suppose a household uses 400 kWh each month, and its variable electricity rate changes from 25¢ to 30¢ per kWh.
These are invented planning assumptions—not national averages or a quoted utility increase.
| Assumption or result | Previous | Scenario |
|---|---|---|
| Rate per kWh | $0.25 | $0.30 |
| Monthly usage | 400 kWh | 400 kWh |
| Monthly variable charge | $100 | $120 |
The calculation is: 400 kWh × $0.05 = $20 more per month.
If those rates and that usage stayed unchanged for twelve months, the projected difference would be $240.
That is an annualized scenario, not a prediction of twelve identical bills. Replace the example usage with your own assumption, and revisit it when circumstances change.
A price increase isn’t automatically “overspending”
A higher price and a budget gap are different numbers.
In this example, the projected charge increases by $20. But if your chosen monthly target is $110, the new $120 scenario is $10 above that target, not $20.
Enter your target in the calculator’s optional budget field to see that distinction. Leave it blank if you haven’t chosen one; Piggy shouldn’t invent your budget.
And being above a target is information—not a character judgment. Electricity keeps important things running. Your spreadsheet does not get to shame you for that.
Check whether one rate tells the whole story
If you have time-of-use pricing, when you use electricity can affect the applicable rate. DOE describes these arrangements as prices that vary by time of day, and sometimes season. Check your own tariff before assuming that moving a household task changes its cost. DOE’s time-variable pricing guide.
The current Piggy calculator compares one compatible unit price at constant usage. It does not reproduce a complete tiered or time-of-use utility bill.
Likewise, an electricity average is not your personal tariff. EIA explicitly distinguishes its published data from individual utility rates and tariff schedules. EIA’s tariff-data FAQ.
Try the downward scenario, too
Planning isn’t only about increases.
At the same hypothetical 400 kWh, a rate falling from 25¢ to 20¢ would reduce the modeled monthly variable charge from $100 to $80.
That is a potential $20 monthly reduction—not confirmed savings. Decide what you might do with the difference, then check the actual bill before treating it as money saved.
Try a higher or lower electricity rate. Change the prices, usage and optional target to explore your assumptions.
The useful result isn’t a promise. It’s a clearer question: “If this changes, what would I want to adjust?”
Sources and coverage
- EIA: Prices and factors affecting electricity prices
- DOE: Demand Response and Time-Variable Pricing Programs
- EIA: Electric utility rate, tariff and demand-charge data
Sources checked October 6, 2026. This is an evergreen planning explainer, not a new utility-rate announcement. All example prices and usage are hypothetical; no utility, household or national-average rate is quoted. Check your own tariff for actual charges.
A little clarity, not a guarantee
Projections are not recorded spending or confirmed savings. No national average or future price is inferred. The web calculator does not upload receipts, send family requests, or update the iPhone app.