How to Calculate Bills

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Household expenses, planned and unplanned, represent an important part of any budget. Expenses reduce the amount of disposable income available to the household which effects the ability to purchase everyday necessities and luxury items. Budgeting, an important concept in financial responsibility, requires households to take inventory of their current financial situation in order to map out a plan for controlling expenses and saving for future goals. Proper budgeting and planning requires an accurate tally of household bills and expenses.

Gather and organize the most recent statements for all of your bills and expenses. Statements help provide an accurate calculation.

Calculate fixed expenses by tallying these expenses. Examples of fixed expenses include car payments, mortgage payments and insurance premiums. Fixed expenses represent expenses which remain constant each month.

Calculate variable expenses. Variable expenses fluctuate over time and include electric bills, telephone bills and other utility bills. Use statements covering three billing cycles to estimate the average expense for utilities.

Take into account fixed quarterly and yearly expenses. These expenses can include car insurance and homeowners insurance. Convert quarterly and yearly expenses to monthly amounts by dividing the total amount due by the number of months in the billing cycle. For instance, to calculate the monthly expense of an insurance policy covering a one year period, take the total amount due and divide by 12.

Combine fixed and variable expenses. Calculate your household bills by combining your total fixed expenses and your total variable expenses. This represents the portion of your income required to meet monthly financial obligations.


  • Use a budget worksheet to help track expenses.


About the Author

Nicole Long is a freelance writer based in Cincinnati, Ohio. With experience in management and customer service, business is a primary focus of her writing. Long also has education and experience in the fields of sports medicine, first aid and coaching. She earned her Bachelor of Arts degree in economics from the University of Cincinnati.

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  • piggy bank image by Svetlana Privezentseva from