calc2save

Appliance energy cost and replacement payback calculator

Will a more efficient appliance pay for itself?

Compare yearly electricity use, your local rate, and the real upfront price. See operating costs, annual savings, simple payback, and whether the replacement leaves your household ahead over the years you expect to own it.

Electric appliances U.S. dollars Uses your local rate No signup

Your comparison

Enter the two appliances you are weighing

The starting figures are an editable example. Annual kWh often appears on the yellow EnergyGuide label; replace the electricity rate with the variable per-kWh rate on your bill.

What are you comparing?
kWh/year

Use annual electricity consumption, not the label’s dollar estimate.

kWh/year

Use a comparable model under similar household use.

¢/kWh

17.30¢ is the 2025 U.S. residential average, not a local 2026 rate.

Include tax, delivery, installation, and disposal.

Enter only credits you have verified and expect to receive.

years

Choose a realistic ownership period from 1 to 30 years.

Net savings after 10 years

$65.00 saved

The replacement lowers electricity cost by $86.50 a year and is $65.00 saved after 10 years compared with keeping the current appliance. Estimated energy-cost payback: 9 years 3 months.

Annual electricity savings $86.50 per year
Estimated payback 9 years 3 months

Calculation breakdown

Where the result comes from

Current appliance annual cost
$155.70
Replacement annual cost
$69.20
Electricity saved
500 kWh per year
Upfront cost difference
$800.00
Gross electricity savings
$865.00
Keep-current total
$1,557.00
Replacement total
$1,492.00
After 5 years

$367.50 more spent

After 10 years

$65.00 saved

Worked example

A lower power bill does not always mean an immediate saving

In the starting example, annual electricity cost falls from $155.70 to $69.20, a saving of $86.50 per year. The $800 replacement takes 111 months—9 years and 3 months—to recover through electricity savings. The household is $367.50 behind after five years but $65 ahead after ten.

This is an illustration, not a claim about a typical appliance. If replacement is already necessary, choose that option and compare the efficient model’s price with the model you would otherwise buy.

Build a trustworthy comparison

Guides for every number and decision behind the calculator

Start with the guide that matches the information you have. Each one shows how to prepare a defensible input, understand its limits, and bring the result back to this calculator.

How to read an EnergyGuide label

Find annual kWh, understand the comparison range, and recalculate the label at your rate.

Read the label guide →

Calculate what an appliance costs to run

Use annual kWh, measured kWh, or watts and runtime to estimate household electricity cost.

Calculate operating cost →

Find the right electricity rate on your bill

Separate variable charges from fixed fees and handle flat, tiered, or time-of-use pricing.

Choose a bill rate →

Measure an appliance’s actual electricity use

Choose a safe monitoring window for constant, cycling, standby, or seasonal loads.

Measure actual use →

Should you replace a working appliance?

Compare the full replacement cost with annual savings, payback, and your ownership horizon.

Test a working replacement →

Is a more efficient appliance worth the premium?

When replacement is unavoidable, compare only the efficient model’s extra purchase price.

Test the efficiency premium →

Transparent method

Formulas and assumptions

The equations used here

  • Annual operating cost = annual kWh × electricity rate.
  • Annual savings = current or comparison cost − replacement cost.
  • Net upfront difference = replacement price − rebates − comparison price.
  • Simple payback = upfront difference ÷ annual electricity savings.
  • Period savings = annual savings × years − upfront difference.

See the appliance electricity-cost guide for annual-kWh, measured-kWh, and watts-times-runtime examples.

What this calculator does not include

  • Water, natural gas, maintenance, repairs, financing, resale value, or fixed utility fees.
  • Future electricity-price changes, inflation, or discounted cash flow.
  • Differences in capacity, features, reliability, safety, fit, or actual remaining life.
  • Time-of-use rates or usage changes between the two appliances.

About the starting rate: The U.S. Energy Information Administration reports a 2025 residential average of 17.30¢ per kWh. Electricity prices vary substantially by locality, so the default is only a labeled example. Learn which electricity rate to use from your bill before relying on the result for a household decision.