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Appliance Replacement Payback

Compare annual consumption savings with an added purchase cost.

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Local calculations. Results are estimates, not professional advice.

Annual bill saving

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Assumes constant annual consumption and electricity price. Payback includes energy savings only; maintenance, financing, resale and appliance lifetime are excluded.

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:

Methodology

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