Appliance Replacement Payback
Compare annual consumption savings with an added purchase cost.
Your numbers
Annual bill saving
Assumes constant annual consumption and electricity price. Payback includes energy savings only; maintenance, financing, resale and appliance lifetime are excluded.
Scenario comparison
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Formula
Use S = (Eₒ−Eₙ)p. Eₒ and Eₙ are old and new annual energy use in kWh, and p is price per kWh. S is annual bill saving; simple payback divides net replacement cost by a positive saving.
Compare annual consumption savings with an added purchase cost.
Worked example
- Old annual consumption (kWh)
- 500
- New annual consumption (kWh)
- 300
- Electricity price per kWh
- 0.25
- Net replacement cost
- 400
- Annual bill saving
- 50
- Simple payback
- 8 years
Scope and limitations
Assumes constant annual consumption and electricity price. Payback includes energy savings only; maintenance, financing, resale and appliance lifetime are excluded.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.
Formula version: cae68ba4fadb · Example checked: