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Utility bills are the monthly charges for the essential services that keep your home running. Electricity, water, gas, trash collection, internet and phone service are all common household utilities, although exactly what counts as a utility can vary depending on your location and housing arrangement.
Because utility costs depend on where you live, the size of your home, seasonal weather, and how much you use, monthly bills can vary significantly. Understanding what’s included in these bills can help you budget more accurately and identify opportunities to reduce your monthly expenses.
Key Points
• Utility bills are monthly invoices for essential services that keep a household running, such as electricity, water, and internet.
• Tracking your utility bills is an effective way to improve your budgeting and identify ways to lower monthly expenses.
• Factors such as your location, home size, and seasonal weather patterns significantly influence how much you pay each month.
• Minor home improvements like fixing leaks, upgrading to energy-efficient appliances, and adjusting your thermostat can lead to substantial savings.
• Contacting your service providers early is a critical first step if you have difficulty paying your bills to discuss payment plans or assistance programs.
What Is a Utility Bill?
A utility bill is a statement showing how much you owe for essential household services. Depending on your home and service providers, utility bills may include:
• Electricity
• Natural gas or heating oil
• Water
• Sewer
• Trash and recycling collection
• Internet service
• Phone service
• Cable (sometimes)
Understanding your utility bills can make budgeting for basic living expenses easier and help you anticipate monthly household costs.
What Does a Utility Bill Include?
Although every provider formats bills differently, utility statements generally contain the same basic information. Typically, you’ll find:
• Your account number
• Service address
• Billing period
• Payment due date
• Current and previous meter readings (if applicable)
• Total usage during the billing period
• Itemized charges, taxes, and fees
• Total amount due
Many providers also include graphs or charts comparing your current usage with previous months, making it easier to spot seasonal changes or unusually high consumption.
Reviewing your bill regularly can help you catch billing errors, monitor your usage, and identify opportunities to lower your monthly costs. Any money you save on utilities can then be redirected toward your financial goals, such as building an emergency fund or contributing to a high-yield savings account.
Below are examples of what you might see on different types of utility bills.
Electricity and Gas Bills
Electricity and natural gas bills typically provide the most detailed breakdown of your energy usage. Along with your account information and billing dates, you’ll usually see:
• Energy used during the billing period (measured in kilowatt-hours or therms)
• Cost per unit
• Delivery and service charges
• Taxes and other fees
• Total amount due
Many providers also include comparisons showing how your energy use stacks up against previous months or similar households in your area. You’ll also typically find payment information, including options to pay your bill online, enroll in automatic payments, or mail a payment.
Water, Sewer, and Trash Services
Water, sewer, and trash bills generally contain similar account and billing information, along with an itemized breakdown of charges.
Water bills often show the number of gallons used during the billing period and may compare your consumption with previous months. Trash service bills may also include notices about holiday pickup schedules, service changes, or optional service upgrades.
Are Internet and Cell Phone Bills Considered Utilities?
Today, many people consider internet and phone service to be utilities because they play an essential role in everyday life. Households rely on them for work, school, banking, healthcare, shopping, and communication, and many smart-home devices require an internet connection to function.
Whether they’re officially classified as utilities depends on the provider or organization but they’re commonly included when discussing monthly household utility expenses.
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Average Utility Costs in 2026
Utility costs vary based on your location, household size, climate, and usage habits. However, the national average provides a useful starting point for budgeting.
Average monthly U.S. utility costs include:
| Utility | Average Monthly Cost |
|---|---|
| Electricity | $141 |
| Natural gas | $90 |
| Water | $48 |
| Sewer | $67 |
| Trash collection | $62.50 |
| Internet | $62 |
| Phone | $58 |
Knowing your typical utility expenses can help you calculate the percentage of income that goes toward rent and utilities, create a more realistic monthly budget, and determine whether your housing costs fit comfortably into your overall finances.
7 Smart Ways to Lower Your Monthly Utility Bills
Reducing your utility costs doesn’t necessarily require a major home renovation. Small changes can add up to significant savings over time.
• Schedule a home energy audit: Many utility companies and state energy offices offer energy audits that identify areas where your home is losing efficiency. Improvements such as sealing air leaks or upgrading insulation can reduce heating and cooling costs.
• Adjust your thermostat: During colder months, lowering your thermostat when you’re asleep or away from home can cut heating costs. A programmable or smart thermostat can make these adjustments automatically.
• Lower your water heater temperature: Setting your water heater to 120°F can reduce everyday energy use while still providing sufficient hot water for most households.
• Upgrade to energy-efficient appliances: When replacing old appliances, look for Energy Star-certified models, which can significantly lower your energy bills.
• Fix plumbing leaks promptly: A dripping faucet or running toilet can waste significant amounts of water over time, increasing your monthly bill.
• Negotiate your internet and cable plans: If you’re paying for services you rarely use, consider switching to a lower-cost plan or asking your provider about available promotions or discounts.
• Choose the right trash service level: Some waste management companies offer different container sizes or pickup schedules. Selecting a smaller bin or less frequent service could reduce your monthly costs.
What to Do If You Cannot Pay Your Utility Bills
If you’re having trouble paying a utility bill, contact your provider as soon as possible. Many companies offer payment plans, temporary extensions, or other hardship programs that may help you avoid service disruptions.
If you rely on electricity or heat for essential medical equipment or other critical needs, let your provider know. Additional protections or assistance programs may be available.
You can also explore government assistance programs, such as the federal Low Income Home Energy Assistance Program (LIHEAP), or check with your state’s social services agency to see whether you qualify for local assistance.
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The Takeaway
Utility bills cover the essential services that keep your household running, from electricity and water to internet and trash collection. Understanding what’s included in these bills — and reviewing them regularly — can help you build a more accurate budget, spot unexpected increases in usage, and identify opportunities to reduce your monthly expenses. Even small savings on utilities can free up money for other financial goals like building an emergency fund, paying down debt, or saving for a significant purchase.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What is considered as a utility bill?
A utility bill is a monthly statement for essential household services. Common utility bills include electricity, natural gas, water, sewer, and trash collection. Many people also include internet and phone service when budgeting for utilities, although they are not always classified as utilities by every provider or landlord. Which bills you’re responsible for depends on where you live and the terms of your lease or service agreements.
What is included in a utility bill when renting an apartment?
It depends on your lease. Some landlords include services such as water, sewer, trash collection, or heat in the monthly rent, while tenants pay separately for electricity, gas, internet, or cable. In other rentals, tenants are responsible for all utilities. Before signing a lease, it’s a good idea to review which utilities are included and ask about average monthly costs so you can budget accurately.
Are streaming services considered utility bills?
No. Streaming services are generally considered discretionary entertainment expenses rather than utilities. Utility bills typically cover essential services needed to operate and maintain a home, such as electricity, water, natural gas, sewer, and trash collection. While internet service is often included in household utility budgets, streaming subscriptions are usually categorized separately.
How can you accurately estimate your future utility costs?
Start by reviewing your past utility bills to identify seasonal patterns and average monthly costs. If you’re moving, ask the previous homeowner, landlord, or utility providers for average bills at the property. Also consider factors such as your home’s size, local climate, household size, and whether you use electric, natural gas, or oil heating, since all can affect your monthly costs.
Will unpaid utility bills affect your credit score?
Missing a utility payment doesn’t usually affect your credit score immediately because most utility companies don’t regularly report payments to the major credit bureaus. However, if an overdue bill is sent to a collection agency, the collection account may appear on your credit reports and could negatively affect your credit. Paying bills on time or contacting your provider if you’re experiencing financial hardship can help you avoid collections.
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