How Much Does It Cost to Run My Air Conditioner?

By Hannah Stephens

March 29, 2025

Air conditioners are power-hungry appliances, guzzling around 6% of American energy. While many of us rely on our ACs to keep cool in sweltering summer temperatures, residential cooling costs U.S. homeowners a staggering $29 billion (CAD 40.8 billion) per year.

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Understanding how much it costs to run an AC can help you choose the most suitable model for your home and keep bills under control.

How Much Electricity Does an Air Conditioner Use?

According to CNET, how much energy an AC unit uses depends on its size, energy efficiency and the space it needs to cool. A central AC consumes an average of around 3,000 to 3,500 watts per hour. Smaller units typically use about 1,000 to 1,500 watts per hour.

The cost depends on average energy prices in your area. As of October 2024, the average price of electricity in the United States is $0.177 (CAD 0.25) per kWh. Remember that a kWh is the amount of energy used by a 1,000-watt unit over an hour. If your AC unit consumes 3,500 watts, it uses 3.5 kWh.

Local energy prices can vary significantly, so running identical AC units could cost more in some areas than others. For example, electricity costs just $0.124 (CAD 0.17) per kWh in St. Louis, Missouri, while consumers pay $0.405 (CAD 0.57) in urban Hawaii.

How Much Does It Cost to Run a Central AC?

Central air conditioners typically cost more to run per hour because they use more energy than smaller units. However, these units can cool your entire home, while you'll need several smaller units to deliver the same cooling power.

HomeGuide estimates that running a central air conditioner costs around $0.12 to $1.13 (CAD 17 to CAD 1.59) per hour. Operating your air conditioner for 8 hours per day usually costs between $30 and $270 (CAD 42 and CAD 380) per month. These figures assume an energy price of $0.15 per kWh, so your bill may differ depending on local electricity costs.

The size of your central air conditioner significantly impacts your running costs. Running a 1-ton AC in a small apartment could cost as little as $0.12 to $0.23 (CAD 0.12 to CAD 0.32) per hour, or $30 to $54 (CAD 42 to CAD 76) per month. Meanwhile, a 5-ton unit designed to cool an extra-large home consumes $0.60 to $1.13 (CAD 0.84 to CAD 1.59) of electricity per hour and costs an average of $144 to $270 (CAD 203 to CAD 380) per month to run.

Installing the correct unit size for your home is essential. Running an oversized AC could cost more because these units use more energy than necessary to cool your home. Conversely, undersized ACs must work harder to maintain a comfortable temperature, increasing energy bills and wear and tear.

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How Much Does a Portable AC Cost to Run?

Portable air conditioners and window units typically cost less to run because they use less energy. Running a small 8,000 to 10,000 BTU portable unit costs around $0.12 to $0.15 (CAD 0.17 to CAD 0.21) per hour. Expect to spend around $29 to $36 (CAD 41 to CAD 51) monthly to run a single unit for 8 hours per day.

Midsize units delivering 10,000 to 12,000 BTUs cost between $0.15 and $0.18 (CAD 0.21 and CAD 0.25) per hour or $36 to $43 (CAD 51 to CAD 60) monthly. The largest portable ACs usually deliver 12,000 to 14,000 BTUs of cooling power. They cost slightly more to run at $0.18 to $0.21 (CAD 0.25 to CAD 0.30) per hour or approximately $43 to $50 (CAD 60 to CAD 70) per month.

Is It Cheaper to Run an AC All Day Rather Than Shutting It Off?

There's a common myth that it's always cheaper to leave your AC running rather than turning it off during the day. The cheapest way to use your AC depends on your local climate.

Air conditioners run until they reduce the indoor temperature to the setting on your thermostat. When the air reaches your desired temperature, the unit switches off. When the temperature rises, it kicks in again to keep your home comfortable.

Switching the AC off in hot climates could allow the temperature to rise significantly, making your unit work harder when you turn it back on and costing you more. On the other hand, switching your AC off during the day could be cost-effective in cooler areas where the air conditioner doesn't need to work as hard to lower the temperature to a comfortable level.

All CAD conversions are based on the exchange rate on the date of publication.

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