Electricity Contract Exit Fee Break-Even Calculator

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Compare your exit fee with estimated electricity savings to decide whether switching plans now pays off before your contract ends.

Advanced options
Switch-now or wait result
Calculated one-time exit feeThis is the estimated switching cost that monthly savings must repay.
Estimated net savings through contract end
Estimated monthly savings after switching
Estimated months to recover the exit fee
First full month with the fee recoveredMonth 0 means the fee is recovered immediately.
Estimated current plan monthly costCompare this estimate with a typical current bill as a quick input check.
Estimated new plan monthly costThis uses the entered per-kWh and fixed monthly charges.
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How to use our Electricity Contract Exit Fee Break-Even Calculator

  1. Enter Expected monthly electricity use from a typical bill, then enter the full Current per-kWh charges and New plan per-kWh charges.
  2. Enter Full months left on current contract from your provider account, contract, or renewal notice.
  3. Choose how the fee works under How is the exit fee calculated?, then enter either the flat fee or the fee for each remaining month.
  4. Open Advanced options if either plan has monthly base, customer, or meter charges, and enter them as fixed charges.
  5. Check that the estimated current monthly cost is close to a typical bill before relying on the switch-now or wait result.
Example inputs for Electricity Contract Exit Fee Break-Even Calculator
Example inputs for Electricity Contract Exit Fee Break-Even Calculator

Definitions

Per-kWh charges: Charges that rise with electricity use, stated in cents for each kilowatt-hour (kWh).

Fixed charges: Monthly charges that stay the same even if electricity use changes, such as a base, customer, or meter charge.

Exit fee: A one-time charge for ending an electricity contract early. It may be a flat amount or an amount for each full month left.

Break-even months: The number of months of estimated monthly savings needed to repay the exit fee.

Texas planning default: The 16.44 cents per kWh starting value is a replaceable Texas residential planning estimate, not your personal bill rate. [1]

Example cost through contract end1,000 kWh/month, 12 months left, and a $200 exit fee. The switch-now total includes the one-time exit fee.Example cost through contract end1,000 kWh/month, 12 months left, and a $200 exit feeStay current2280 $Switch now1940 $Option
Example cost through contract end
The switch-now total includes the one-time exit fee.

Common mistakes and quick fixes

Mistake: Entering only an advertised energy rate in Current per-kWh charges or New plan per-kWh charges.
Fix: Add every charge that changes with kWh, including per-kWh delivery charges when listed separately.

Mistake: Using a high-use summer bill as Expected monthly electricity use for the whole remaining contract.
Fix: Use an average from several bills when usage changes a lot by season.

Mistake: Entering a per-month cancellation rule as a Flat exit fee.
Fix: Choose Fee for each remaining month under How is the exit fee calculated? and enter the amount in Exit fee for each remaining month.

Mistake: Forgetting a base or customer charge because it is not charged per kWh.
Fix: Add it under Current plan monthly fixed charges or New plan monthly fixed charges in Advanced options.

Mistake: Treating a negative Estimated net savings through contract end as savings.
Fix: A negative amount means staying on the current plan is estimated to cost less by that amount over the remaining term.

Limitations & Key Assumptions / Boundary Conditions

  • This is a first-pass estimate using one expected monthly electricity-use value. Seasonal heating or cooling can make actual savings higher or lower.
  • The calculation includes entered per-kWh and fixed monthly charges only. It does not model bill credits, minimum-use fees, prepaid pricing, taxes, time-of-use prices, or other usage rules.
  • Use the same charge scope for both plans. Comparing an all-in current rate with an energy-only new rate can give a misleading result.
  • A positive switch result does not confirm that an exit fee applies. Check the contract and provider for waiver, renewal, moving, or other exceptions.
  • If Full months left on current contract is 0, the calculator assumes no remaining monthly savings horizon. Verify whether any fee still applies before switching.

Methodology

Calculation method

Monthly electricity cost combines usage charges and fixed monthly charges. The rate is entered in cents per kWh, so dividing by 100 changes cents into dollars.

current monthly cost = monthly use * current per-kWh charges / 100 + current fixed charges

new monthly cost = monthly use * new plan per-kWh charges / 100 + new fixed charges

The exit fee uses only the selected fee rule. A flat fee uses the entered dollar amount. A per-month fee is multiplied by the full months left on the contract.

exit fee = flat exit fee, or fee per remaining month * months remaining

monthly savings = current monthly cost - new monthly cost

net savings through contract end = monthly savings * months remaining - exit fee

Switch now is shown only when monthly savings and net savings through the contract end are both positive. If monthly savings are positive, recovery time is calculated as follows; otherwise, the fee cannot be recovered from monthly savings.

break-even months = exit fee / monthly savings

first full recovery month = round break-even months up to a whole month

Mini-example

Suppose use is 1,000 kWh per month, current charges are 18 cents per kWh plus $10 fixed, and new charges are 14 cents per kWh plus $5 fixed. The current estimate is $190 per month and the new estimate is $145 per month, so monthly savings are $45.

net savings = $45 * 12 months - $200 exit fee = $340

In this example, the $200 fee is recovered in about 4.44 months, so the first full month with the fee recovered is month 5.

Sources

  1. Electric Power Monthly - U.S. Energy Information Administration (EIA)