Ongoing ownership costs
Utilities, explained
Utilities are services that help your home work, such as electricity, gas or heating fuel, water, sewer, trash pickup, and internet. You usually pay for them again and again. A setup fee or deposit that you pay only once is not a monthly utility cost. Put that under Other one-time costs.
Published and maintained by Kevin Song for Your Home Cost. Last reviewed: . How guides are reviewed.
3 cited sources
Why it changes your estimate
Utilities are usually outside the mortgage payment but still use part of the household's monthly budget. Their cost can change greatly by season, so leaving them out can make a home appear more affordable than day-to-day life will feel.
What to enter
Add the average monthly cost of every recurring utility you want included. When possible, total 12 months of bills and divide by 12 so hot and cold seasons are represented. Ask the seller for past bills, then adjust for differences in household size, comfort settings, work-from-home use, and personal habits.
Good to know
The Energy Information Administration (EIA) benchmark is state-level electricity only: the app divides annual residential electricity revenue by the number of residential customers and then by 12. It is not a bill for a particular city, rate plan, home, or usage level. The Bureau of Labor Statistics (BLS) benchmark is different: it is a national mean expenditure for homeowner consumer units, or a dated all-consumer-unit fallback if the newer homeowner series cannot be loaded. It adds electricity, natural gas, other household fuel, and water and other public services; phone and internet are excluded. Do not add the EIA and BLS figures together because the broader BLS amount already includes electricity. Home size, climate, insulation, appliances, fuel, rates, and occupants still matter, and a utility included in homeowners association dues should not be counted again.
Build an address-specific twelve-month utility picture
Ask the seller for 12 consecutive months of bills or request an address-based usage history from each provider when available. Record usage and dollars separately so a recent rate change does not hide an inefficient season. Identify the heating fuel, cooling system, water and sewer billing method, trash arrangement, internet options, and any shared or association-paid service. Do not assume a nearby home's bill applies when size, insulation, equipment, or occupants differ.
Calculate both an annual monthly average and a high-season amount. The average belongs in the calculator, while the peak helps test cash-flow resilience. Adjust the history for known differences such as an electric vehicle, pool, irrigation, remote work, household size, thermostat preferences, or planned equipment replacement. Treat deposits and connection charges as one-time costs rather than inflating the monthly estimate.
- Collect a full year of address-level bills and identify every service provider.
- Separate usage changes from rate changes and note the highest seasonal month.
- Remove services included in association dues and move deposits to upfront costs.
Worked example
If one year of electricity, gas, water, sewer, trash, and internet totals $3,600, the average is $300 per month. A separate $150 utility activation deposit belongs under Other one-time costs instead.
Sources and citations
These references support the definitions, planning guidance, and program rules above. A citation does not mean its publisher endorses this guide.
Original planning exercise
Build a twelve-month budget from seasonal bills
Suppose a property's combined electric and gas bills total $2,400 for 12 months. Water and trash add $600 a year, and internet is $70 a month. The most expensive electric-and-gas month is $340.
Illustrative assumptions, not quotes or forecasts. Calculations by Your Home Cost; mortgage payment examples use the calculator's shared fixed-rate formula.
| Option or step | Calculation | Planning result |
|---|---|---|
| Annual operating budget | $2,400 + $600 + ($70 × 12) | $3,840/year |
| Monthly average | $3,840 ÷ 12 | $320/month |
| High-use month | $340 + $50 average water/trash + $70 internet | $460 illustrative monthly cash need |
What the comparison tells you
The $320 average funds a full-year budget but does not mean every bill will be $320. The high-use month requires $140 more than the average. Water and trash billing frequency may create another timing difference, even if the annual total is unchanged.
Evidence to collect
Use a full year of bills where possible and note occupancy, thermostat settings, electric vehicles, pool equipment and any rate-plan changes. Previous occupants' usage is useful evidence, not a guarantee for your household.
Apply it in the calculator
Enter the annual average in Utilities. Keep setup deposits in Other one-time costs and remove any services already included in HOA dues.
Original planning exercise added . Source-review dates above are maintained separately.