How much does it cost to run an air conditioner? (Australia)
Updated 14 October 2026
An air conditioner's running cost comes down to three things: how much power it draws, how long it runs and what you pay per kWh. Here's how to work out each one.
The sum
Power input (kW) x hours x price per kWh = cost.
Use the power input, not the cooling capacity. A unit sold as "7 kW" gives about 7 kW of cooling but draws much less electricity than that. The power input for cooling is listed in the spec sheet or manual, usually in kW. If it's shown in watts, divide by 1,000.
Example costs
Using an example price of 30 cents per kWh, running 6 hours a day:
| Power input | Per hour | Per day (6 hours) | 90 days of summer |
|---|---|---|---|
| 1 kW | $0.30 | $1.80 | $162 |
| 2 kW | $0.60 | $3.60 | $324 |
| 3 kW | $0.90 | $5.40 | $486 |
For example, 2 kW x 6 hours = 12 kWh a day. At 30 cents, that's $3.60 a day, or $324 over 90 days.
Why your real cost is usually lower
The power input on the spec sheet is close to the most the unit draws. Most modern split systems are inverter models: once the room is cool, they slow down and draw less. So treat the figures above as the top of the range. A hot afternoon, a big room or poor insulation pushes the cost up; a mild day and closed blinds bring it down.
Using the energy rating label
Newer air conditioners have a zoned energy rating label with a map showing hot, average and cold zones. It shows how many kWh a year the unit is expected to use in each zone. Pick your zone, then multiply that figure by your price per kWh for a yearly estimate. The label is based on a standard test, so your own use may differ.
Try it: Electricity running cost calculator: type the watts, hours and your price per kWh.
Common questions
Where do I find my price per kWh?
On your electricity bill, usually listed as the usage rate or the price per kWh. If you have peak and off-peak rates, use the rate for when the air conditioner runs, often the afternoon peak.
Does this include the supply charge?
No. The daily supply charge is on your bill whether the air conditioner runs or not, so it's left out.
Is a bigger air conditioner more expensive to run?
Not necessarily. Get advice on the right size for your space, then compare star ratings: more stars means the unit uses less energy than similar models.
See every bill in one place
The Monthly Budget Planner tracks every bill and expense each month, so you can see where your money goes and what's left.
See the Monthly Budget PlannerSources
- Energy Rating: how to read the air conditioner label (PDF)
- Energy Rating (Australian Government): the energy rating label
Last checked 14 October 2026. Prices in the examples are examples only: use the rate on your own bill. General information only, not financial advice.