This document describes the design of a digital energy meter with a cost indicator. It has three main parts: a power sensing unit, a power and cost calculation unit, and a display unit using LCD. It measures power consumption and calculates the energy used in kW/h and the corresponding cost based on the tariff rates stored in the microcontroller. The values are displayed on the LCD. It is designed using components like a PIC microcontroller, current and potential transformers, and an LCD for display. The circuit uses a power supply unit consisting of a step-down transformer, rectifier, filters and regulators to provide the necessary power.