Electrical power is measured in watts and refers to the rate at which electrical energy flows through a circuit. Electrical energy purchased is measured in kilowatt-hours, which is the amount of power used over time. The formula for calculating power is Power (watts) equals Voltage (volts) multiplied by Current (amps). For example, a coffee maker that uses 1050 watts for 1 hour per day and electricity costs 14 cents per kilowatt-hour would cost around $4.41 per month to run.