When the cost of energy rises, home utility bills tend to follow suit. The January 2026 consumer price index reported a 2.3% increase in energy and a 7.7% increase in energy services over the previous 12 months ending in December. It’s not surprising, then, that your gas and electric bills may have risen sharply last year. What’s in store for this year? It’s time to estimate.
Even when prices are falling, the amount you spend on utilities each month is worth noting. From a budgeting standpoint, it’s a good idea to project monthly costs such as electricity, water and internet.
[READ: These Are the 5 Best Free Budgeting Apps to Use]
According to Move.org, a moving resource site, the national average for monthly utility costs was $611 in 2025, up from $583 the previous year. This includes these prices:
Monthly Average Utility Costs in 2025
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If these numbers seem high or low to you, remember that they are averages. The state you live in and whether you’re in a house or an apartment have a lot to do with the type of utilities you pay for and the final bill. For example, if you need additional trash cans, your garbage removal costs may escalate, and when fuel prices surge, related utilities will become more expensive.
Review the different utility types that are a part of your household and project for their costs. By taking certain actions, you may be able to reduce them.
Electricity
Of all your utilities, you’ll likely spend the most on electricity each month. This bill will fluctuate based on energy prices, the season and your usage. However, you can take some of the guesswork out of how much you pay by taking advantage of equal billing plans (sometimes called budget billing, balance billing or level pay.)
If your utility company offers such a plan, you will pay the same amount for electricity each month. The company calculates the monthly amount by dividing the total you spent on electric bills in the past year by 12. Depending on your estimated and actual usage at the end of the year, you may pay extra or have money credited to your January bill.
Heating and Air Conditioning
If it’s a brutal winter in your area, you may spend a small fortune on heating, while especially hot summers will result in a high air conditioning bill.
A December 2025 National Energy Assistance Directors’ Association report predicts that households will spend an average of $995 on heating this winter, an increase of $84 from last year. Meanwhile, the U.S. Energy Information Administration reports average summer residential electricity bills for air conditioning to be approximately $178 per month.
Your numbers may vary, of course, but use what you spent on these bills last year as a jumping-off point. Or invest in a power consumption meter, which logs power consumption over time, suggests Sequoya Cross, vice president of energy storage for Briggs & Stratton Energy Solutions, headquartered in Milwaukee.
You can also request an audit from your local utility company, which will reveal your energy consumption patterns. Cross says that, based on the audit, your company will provide you with steps you can take to improve your home’s energy efficiency and save money. “For example, they may suggest wrapping your hot water heater, or suggest when to run your dishwasher or dryer,” Cross says.
Internet, Cable, Mobile and Streaming
The average total cost for internet, cellphone and streaming services is $210, according to Move.org data. Add the average cable TV bill of $75 to the mix, and you’re looking at $286.
Of course, your personal bills will vary, so to get what you spent, review your account statements. Then contact your providers to find out if there are options to lower the bill. If there is a current promotion, a five-minute phone call can result in a significant discount. You may also lower the speed of your internet, since faster speeds are more expensive and you may have more power than you need.
Some providers offer compelling discounts if you bundle services. For example, Verizon advertises that you can save $15 a month when you sign up for both mobile and home internet.
And definitely evaluate what you truly use. You may have purchased a streaming service to watch one show but haven’t touched it since. If you rarely or never watch network TV, you may want to opt out.
[READ: Inflation Calculator: See How Much Inflation Is Costing You]
Ask the Right Questions When Moving
If you’re relocating to a new area and a different type of home, estimating energy-related utility costs can be a challenge. For guidance, turn to the following people and service providers:
— Your real estate agent. If speaking with the previous homeowner isn’t feasible, ask your real estate agent for help. Request 12 months of utility bill usage history from the seller whenever possible. This will give you a clear picture of what the other owner had been spending on utilities, including how costs fluctuate with the seasons.
— Your new utility provider. Contact local utility companies and ask them for an estimate of typical costs for a comparable home in the area. This can provide a helpful range of what you can expect. It’s also wise to prepare for the higher end of that range to avoid coming up short.
— Your landlord or apartment manager. If you’re moving into an apartment or a community with condominiums or townhouses, the landlord or building manager will be able to give you an educated guess on what you’re going to pay for utilities.
Another Way to Estimate Utility Costs
If you feel like you never quite have enough money for utility bills, create your own budgeting billing plan for all of your utility bills, says Kari Lorz, a Portland, Oregon-based certified financial education instructor and founder of the website Money for the Mamas.
To do this, you would add up each of your utility bills from the past year. “Water, electricity, natural gas, garbage, sewer and so on,” Lorz says. “Then divide by 12 months. That’s how much you could be setting aside each month in a sinking fund for utilities.”
For example, if you spent $7,200 on all of your utilities last year, your monthly average is $600. Some months were much more, others far less. But by depositing that steady figure into a separate fund, you should be able to ride out the fluctuations.
Lorz suggests opening a separate checking account for this fund and setting up autopay to make it easier.
[READ: 10 Ways to Save Energy and Lower Utility Bills]
Account for Other Variables
Other factors to keep in mind when estimating your utility costs include:
— Location. According to the 2025 Doxo U.S. Utilities Market Size and Household Spending Report, Maryland has the most expensive median monthly bill for utilities at $546, followed by Connecticut at $488 and Massachusetts at $481. South Dakota was least expensive at $280. New Mexico and Arkansas tied at $288.
There is a big disparity in big cities as well. New York City has the highest monthly bill at $853, then Milwaukee at $588 and San Jose, California, at $579. Albuquerque has the lowest utility bill on average, at $304, trailed by Houston at $309 and Las Vegas at $311.
— Age of your home. Older houses may come with more expensive utility costs. They are less likely to be as well-insulated and may be draftier, which could translate to a higher heating bill than average. It’s also worth paying attention to plumbing costs. If your pipes are old and you have leaks — even small ones — your water bill may run higher than it should.
— Age of appliances. Energy-efficient technology for large appliances has dramatically increased over the past 10 years, says Vernon Trollinger, web content editor for Electricity Ratings LLC, which operates Texas Electricity Ratings. “Older appliances can have huge motors so take a large amount of energy,” he says. “For example, a new refrigerator uses 15% to 30% less power than one that’s over 20 years old. Since it runs constantly, the savings can be very big.” Trollinger recommends Energy Star products, which are certified by the U.S. Environmental Protection Agency to meet energy-efficiency guidelines.
It Also Matters When You Buy From an Electricity Supplier
In most states, you have no choice in where you purchase your electricity, but 13 states and the District of Columbia give residents a choice in who supplies the electricity (in a handful of those 13 states, local laws may take precedent).
If you live in a deregulated state, Trollinger suggests that the dead of winter and broiling summer are not ideal times to be looking for a new electric supplier.
“The price of natural gas tends to be more volatile at that time, which is used for 50% of the U.S. generators. The absolute best time to shop for fixed-rate plans is when demand is lowest during the spring and fall,” he says, because “energy markets go through cycles. Oddly enough, that’s always tied to what the weather is doing.”
So, if everybody’s cranking up the air conditioner or has the heat on 24/7, and you purchase a plan with an electricity provider at that time, you’ll probably end up paying more.
Take Control of Your Utility Costs in 2026
Estimating your upcoming utility bills, then taking proactive steps to lower them, can help you budget effectively. By considering seasonal variations, requesting better options from your providers and sometimes even upgrading utilities to more energy-efficient models, you can make a huge dent in your utility bills.
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How to Estimate Utility Costs in 2026 originally appeared on usnews.com
Update 02/19/26: This story was published at an earlier date and has been updated with new information.
