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Energy Audit 2026 · Formula Builder · BEE Label Decoder

How to Calculate Your AC's
Annual Electricity Bill

The exact formula — from ISEER to rupees. Includes the 1,600-hour reality check, slab-rate awareness, hidden taxes guide, and an interactive formula builder.

Formula Builder
BEE Label Decoder
ISEER Explained
Slab Rate Guide
1,600 hrs
BEE Label Basis
Standard assumption
+12%
Hidden Charges
Taxes & fixed costs
BEE
Certified Data
Official ratings
7 Steps
Complete Formula
From ISEER to rupees

The Complete Formula: Step by Step

Formula Builder

Adjust variables — the formula solves itself in real-time

AC Tonnage

Star Rating

8 hrs
1 hr24 hrs
180 days
30 days365 days
8/unit
₹3₹12

Live Formula

Cooling Capacity=1.5T×3,517=5,275 W
Rated Wattage=5,275÷ISEER 4.1=1287 W
Avg Wattage=1287×0.85=1094 W
Annual Hours=8×180=1,440 hrs
Annual Units=1094×1,440÷1000=1,575 kWh
Raw Cost=1,575×8=12,598
Total (+ 12% taxes)=14,110/year

Daily Cost

69.99

Monthly

1,176

Annual Total

14,110

The Standard Formula: Converting Watts and Hours into Rupees

Three formulas — from simple to precise. Use the one that matches your data.

F1

Quick Estimate Formula

Use when you only know tonnage and star rating

Annual Cost (₹) =

Label Units × (Your Hours ÷ 1,600) × Rate (₹/unit) × 1.12

The 1.12 factor accounts for taxes and fixed charges. Accuracy: ±15%

F2

Standard Formula (Recommended)

Use when you know ISEER and usage hours

Step 1: Rated Wattage (W) =

(Tonnage × 3,517) ÷ ISEER

Step 2: Annual Units (kWh) =

Wattage × 0.85 × Hours/Day × Days/Year ÷ 1,000

Step 3: Annual Cost (₹) =

Annual Units × Incremental Rate × 1.12

The 0.85 factor = inverter AC average load factor. Use 1.0 for fixed-speed ACs. Accuracy: ±8%

F3

Precision Formula (Engineer-Level)

Use when you have a smart meter or energy monitor

Annual Cost (₹) =

Measured kWh/Day × Days/Year × Incremental Slab Rate + Fixed Charges + Taxes

Requires a smart plug or energy monitor (e.g., Wipro Smart Plug). Accuracy: ±2%

Key Variable: ISEER vs. EER

Always use ISEER (not EER) for annual calculations. ISEER accounts for seasonal temperature variation across India's climate zones. Using EER will underestimate your annual cost by 15–25% because EER is measured at a single temperature (35°C) and doesn't reflect the full cooling season.

BEE Label Decoder: What Every Number Means

Click any element on the label to understand exactly what it means for your bill.

Bureau of Energy Efficiency

STAR LABEL

Brand / Model

XYZ Brand · Model AC-1500

ISEER

4.10

Annual Units

762 kWh

Valid: 2026 · IS 1391

Annual Units (kWh/Year)

This is the KEY number. BEE calculates this at exactly 1,600 hours/year (~4.4 hrs/day). If you use your AC for 8 hrs/day, multiply this number by 1.82 to get your real annual consumption.

The 1,600-Hour Adjustment

1,600 hrs (BEE label)1.0×Label value
2,920 hrs (8 hrs/day)1.82×Multiply label by 1.82
4,380 hrs (12 hrs/day)2.74×Multiply label by 2.74

The 1,600-Hour Reality Check

BEE's "Annual Units" on the star label is calculated at exactly 1,600 hours/year — roughly 4.4 hours/day for 365 days. Most Indian households use their AC for 6–12 hours/day in summer.

The Label Lie: A 5-star AC showing "762 units/year" on the label will actually consume 1,387 units/year if you run it 8 hours/day for 6 months. The label is not wrong — it's just based on a different usage assumption than yours.

Annual Usage Hours

5★ Inverter

3★ Normal

You Save

500 hrs

~1.4 hrs/day · Occasional use

549 u

4,392

703 u

5,624

154 u

1,232/yr

1,000 hrs

~2.7 hrs/day · Light use

762 u

6,096

976 u

7,808

214 u

1,712/yr

1,600 hrs

~4.4 hrs/day · BEE standard

BEE Label Basis

1,219 u

9,752

1,562 u

12,496

343 u

2,744/yr

2,000 hrs

~5.5 hrs/day · Moderate use

1,524 u

12,192

1,952 u

15,616

428 u

3,424/yr

2,920 hrs

~8 hrs/day · Heavy use

2,225 u

17,800

2,851 u

22,808

626 u

5,008/yr

4,380 hrs

~12 hrs/day · Very heavy use

3,338 u

26,704

4,277 u

34,216

939 u

7,512/yr

The DU Tech Adjustment Formula

Your Real Annual Units = Label Units × (Your Hours/Day × Your Days/Year) ÷ 1,600
Example: Label says 762 units. You use 8 hrs/day for 180 days = 1,440 hrs.
Real consumption = 762 × (1,440 ÷ 1,600) = 686 units. At ₹8/unit = ₹5,488/year.

Real-World Example: 1.5 Ton 5-Star AC in a Typical Indian Summer

A complete step-by-step walkthrough — 8 hours/day, 180 days/year, ₹8/unit, Mumbai household.

  1. 1

    Find Cooling Capacity

    1 Ton = 3,517 W of cooling capacity

    1.5 Ton × 3,517 W/Ton

    = 5,275 W

  2. 2

    Calculate Rated Wattage

    Wattage = Cooling Capacity ÷ ISEER

    5,275 W ÷ ISEER 4.10

    = 1,286 W

  3. 3

    Apply Inverter Factor (0.85)

    Inverter ACs run at ~85% of rated wattage on average

    1,286 W × 0.85

    = 1,093 W avg

  4. 4

    Calculate Annual Hours

    Typical Indian summer usage: May–October

    8 hrs/day × 180 days

    = 1,440 hrs/year

  5. 5

    Calculate Annual Units

    kWh = Watt × Hours ÷ 1,000

    1,093 W × 1,440 hrs ÷ 1,000

    = 1,574 kWh

  6. 6

    Calculate Raw Cost

    Use your actual slab rate for accuracy

    1,574 kWh × ₹8/unit

    = ₹12,592/year

  7. 7

    Add Hidden Charges (+12%)

    Taxes, duty, fixed charges add ~10–15%

    ₹12,592 × 1.12

    = ₹14,103/year

Final Answer

Annual Units

1,574 kWh

actual consumption

Raw Bill

₹12,592

before taxes

Total Bill

₹14,103

incl. all charges

Monthly Average

₹1,175

spread over 12 months

Model: 1.5T 5-Star Inverter AC · ISEER 4.10 · 8 hrs/day · 180 days/year · ₹8/unit · Mumbai tariff with 12% additional charges

Why Your Bill is Always Higher than the Star Label's Claim

Two hidden multipliers that the BEE label never mentions — slab rates and additional charges.

Slab-Rate Awareness

The Slab Trap: If your household already consumes 300 units/month before the AC, every AC unit is billed at the highest slab rate — not the average rate. This can add 30–50% to your effective AC cost vs. the label's assumption.

Delhi (BSES)

0–200 units3.00/unit
201–400 units4.50/unit
401–800 units6.50/unit
800+ units7.00/unit

Mumbai (Adani)

0–100 units2.60/unit
101–300 units5.00/unit
301–500 units7.50/unit
500+ units9.50/unit

Bangalore (BESCOM)

0–30 units0.00/unit
31–100 units3.15/unit
101–200 units5.55/unit
200+ units7.10/unit

Chennai (TANGEDCO)

0–100 units0.00/unit
101–200 units1.50/unit
201–500 units3.50/unit
500+ units5.75/unit

The "Hidden Taxes" Guide

These charges add 10–15% to your raw electricity cost — and the BEE label accounts for none of them.

Fixed/Demand Charge

₹50–₹200/month

A flat monthly charge regardless of consumption. Covers grid maintenance costs.

Adds ₹600–₹2,400/year

Electricity Duty (ED)

5–15% of bill

State government tax on electricity consumption. Varies by state — Maharashtra charges 15%, Delhi 5%.

Adds 5–15% to raw bill

Fuel Adjustment Charge (FAC)

₹0.10–₹1.50/unit

Passed on by utilities when fuel costs rise. Changes quarterly. Often not shown on the label.

Adds ₹0.10–₹1.50/unit

Meter Rent

₹10–₹50/month

Monthly rental for the electricity meter. Small but consistent.

Adds ₹120–₹600/year

Wheeling Charges

₹0.50–₹2.00/unit

Cost of transmitting electricity through the grid. Included in most tariffs but sometimes listed separately.

Adds ₹0.50–₹2.00/unit

Total Hidden Cost Estimate

Electricity Duty5–15%
Fixed/Demand Charge₹50–₹200/mo
Fuel Adjustment Charge₹0.10–₹1.50/unit
Meter Rent₹10–₹50/mo
Total Addition+10–15%

How to Find Your Incremental Unit Rate

Step 1: Check Last Month's Bill

Find your total units consumed before AC season. This is your 'base consumption'.

Step 2: Find Your Current Slab

Look at the slab table for your state. Find which slab your base consumption falls in.

Step 3: Use the Next Slab Rate

Every AC unit you add will be billed at the NEXT slab rate — not your current average rate. Use this for accurate AC cost calculation.

Frequently Asked Questions

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