Free calculator
Business energy cost calculator
Work out what your business electricity or gas really costs a year, including standing charges, Climate Change Levy and VAT, and see how your all-in price compares with the Q2 2026 UK average for your size.
Benchmarks: DESNZ Quarterly Energy Prices, tables 3.4.1 and 3.4.2, Q2 2026, including CCL and excluding VAT. CCL main rate 0.801p per kWh from 1 April 2026 (HMRC). This is an estimate; your bill may include other charges such as capacity or reactive power charges.
How the calculation works
- Energy: annual kWh × unit rate.
- Standing charge: daily charge × 365.
- Climate Change Levy: annual kWh × the main rate (0.801p per kWh from 1 April 2026, 0.827p from April 2027), unless you're exempt.
- VAT: added to the total at the rate you choose.
The all-in price per kWh is the total before VAT divided by your annual usage. It's the fairest single number for comparing contracts, because it captures the standing charge as well as the unit rate.
Comparing with the UK average
The government publishes the average all-in price paid by businesses in each usage band every quarter. We compare your all-in price (including CCL, excluding VAT) with the band your usage falls into. See every band.
FAQs
How do I work out my business energy cost?
Multiply your annual usage in kWh by your unit rate, add the standing charge for 365 days, add the Climate Change Levy on each kWh if it applies, then add VAT. This calculator does it for you and shows the all-in price per kWh.
Where do I find my unit rate and standing charge?
Both are on your bill or contract, usually in pence per kWh and pence per day. If you have a day and night meter, use an average of the two rates weighted by how much you use in each period.
Which VAT rate should I use?
The standard rate is 20%. A reduced rate applies to low users (electricity up to 33 kWh a day on average, or 1,000 kWh a month; gas up to 145 kWh a day on average, or 4,397 kWh a month) and to charity non-business and domestic use. Qualifying electricity in Great Britain is zero-rated from 1 October 2026 to 31 March 2027.
Is the Climate Change Levy included in my unit rate?
Usually not. It is normally shown as a separate line on your bill. The calculator adds it for you unless you tick the exemption box.