Abstract: The miniaturization of sensor devices combined with advances in networking and communication technologies have given rise to Internet of Things (IoT) paradigm. Another contemporary technology is cloud computing which facilitates availability of computing platforms, databases and applications on-demand. In this paper, we present the development of a smart home system that uses IOT and cloud computing paradigms to predict household energy consumption and electricity costs. The proposed system collects a variety of data – such as electricity consumption, indoor temperature, humidity, outdoor weather information and uses cloud computing infrastructure for the data storage and prediction of energy consumption using timeseries forecasting methods. Users can monitor energy consumption, costs and predicted usage in real time through the dashboard application connected to cloud platform. We developed DHT11 and Arduino ESP8266 based IoT sensor to measure indoor temperature. We also wrote several services and functions in Google Cloud Platform (GCP) to collect and store sensor data and for the prediction energy consumption data.