Energy Burden Calculator: What Share of Income Goes to Energy

Energy burden measures how hard your energy bills hit your budget. It is the share of your household income that goes to home energy. Two families with the same bill can have very different burdens, because what matters is the bill compared with income. This energy burden calculator works out yours in seconds.

How the calculation works

The calculator turns your monthly energy cost into a yearly total and divides it by your yearly income.

Yearly energy spending = average monthly energy bills × 12
Energy burden (%)      = yearly energy spending ÷ household income × 100
6% benchmark           = household income × 0.06

Then it labels the result:

Above 10%       → severe energy burden
Above 6%        → high energy burden
6% or less      → below the high level

The 6 and 10 percent levels are the thresholds researchers have used for decades. A 2020 report by the American Council for an Energy-Efficient Economy (ACEEE), posted by the Department of Energy, traces them to a 2005 study by APPRISE. The DOE LEAD Tool page defines energy burden as the percentage of gross household income spent on energy and calls 6 percent or greater a high burden.

Include every home fuel: electricity, natural gas, propane, heating oil, kerosene and wood you buy. Do not include gasoline, water, sewer, internet or phone bills.

Worked example

The default inputs: $230 a month in energy bills and a household income of $52,000 a year.

1. Yearly energy spending: $230 × 12 = $2,760.
2. Energy burden: $2,760 ÷ $52,000 × 100 = 5.3 percent.
3. Benchmark: 6 percent of $52,000 is $3,120 a year.

At 5.3 percent, this household is under the 6 percent high-burden level, but not by much. A cold winter or a rate increase could push it over.

A second example

A household pays $300 a month for electricity and propane and earns $30,000 a year. The calculator shows $3,600 a year in energy spending and an energy burden of 12.0 percent, above the 10 percent severe level. The 6 percent benchmark for this income is $1,800, so the household spends twice what would be considered affordable.

Between those two, a household with $250 a month in bills and $42,000 in income lands at 7.1 percent: a high burden.

What your result means

A note on the exact line: DOE calls 6 percent “or greater” high, and the calculator follows that, so a result of exactly 6.0 percent is labeled high.

For context, ACEEE found the US median energy burden was 3.1 percent of income (2017 data). DOE’s LEAD Tool reports about 6 percent on average for low-income households, three times the roughly 2 percent for other households, and more than 30 percent in some areas.

Programs and local factors that change your burden

Assistance with bills. The Low Income Home Energy Assistance Program (LIHEAP), funded by the Department of Health and Human Services, helps eligible households pay heating and cooling bills and handle energy crises. States and local agencies run it and set their own rules within federal limits. USA.gov explains how to find your state’s office.

Free weatherization. The Department of Energy’s Weatherization Assistance Program makes homes more efficient at no cost to eligible households. DOE says households at or below 200 percent of the poverty guidelines, or that receive Supplemental Security Income, are eligible under DOE guidelines, and states may use the LIHEAP standard of 60 percent of state median income instead (DOE). Weatherization lowers the bill side of the burden for years. To see what an assessment of your home involves, read our home energy audit guide.

Check your income against these levels with the LIHEAP and weatherization income calculator, and read our guide to help paying energy bills for payment plans, budget billing and shutoff rules.

Climate and home type. ACEEE found that low-income households, renters and older adults, among other groups, have higher energy burdens than the national median, and that burdens vary by region. Your heating fuel and your home’s insulation also shape the bill.

Rates. Electricity and fuel prices differ by state and utility. Use the electric bill calculator to see what your rate structure means.

Common mistakes

• Leaving out a fuel. Propane, oil or wood delivered a few times a year is easy to forget. Add it.
• Using one month. Bills swing with the seasons. Use a 12-month average.
• Using take-home pay. The 6 and 10 percent levels are based on gross income before taxes.
• Counting car fuel or water. Those are not part of home energy burden.
• Assuming a low burden means no help. Eligibility for most assistance is based mainly on income and household size. Check it separately.

Limits of this calculator

This calculator divides two numbers you provide. It does not know your local energy prices, your home’s efficiency, or whether you qualify for any program. The 6 and 10 percent levels are research benchmarks, not legal eligibility tests.

The result is an educational estimate, not advice or an eligibility decision. To lower the bill side, see our guide on how to lower your energy bill.