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Energy Star Savings Calculator

Enter the energy use of both appliances and your electricity rate to estimate savings.

How it is calculated

The tool compares the yearly electricity use of two models of the same appliance and prices the difference:

kWh saved per year = standard kWh − efficient kWh
annual savings = kWh saved × rate
total savings = annual savings × years
reduction % = kWh saved ÷ standard kWh × 100

Use the annual kWh from each appliance's label or spec sheet, a rate in currency per kWh (for example 0.16, not 16 cents), and the number of years you expect to use it. Years must be above 0. The total is a simple multiple: it assumes a constant price and constant use every year, with no discounting or inflation, and it does not include the purchase price, so it is not a payback calculation. If the efficient model uses more energy, the savings come out negative.

Worked example

A standard model uses 600 kWh a year and the efficient one 400 kWh. Electricity costs 0.16 per kWh and you will keep it for 12 years. Energy saved: 600 − 400 = 200 kWh a year. Annual savings: 200 × 0.16 = $32.00. Over 12 years: 32 × 12 = $384.00. The reduction is 200 ÷ 600 = 33.33%. If the efficient model costs $150 more to buy, that extra price is recovered in about 4.7 years (150 ÷ 32), which you work out yourself from the annual figure.

Try this example →

Common mistakes

  • Entering the electricity rate in cents, such as 16. The rate is treated as a full currency unit, so 16 turns the $32.00 annual saving into $3,200.00. Use 0.16.
  • Swapping the two models. If the efficient appliance is typed first, the savings come out negative with the same size.
  • Entering the monthly kWh from a bill where the annual figure belongs. The fields expect kWh per year; multiply a monthly value by 12 first.
  • Ignoring the purchase price difference. Savings alone do not show whether the efficient model pays off; compare the extra cost with the annual savings.
  • Assuming the total will hold for the full life. Rates and your use change over the years, so treat the 12-year figure as an estimate rather than a guarantee.

About this calculator

This calculator subtracts the efficient appliance's annual kWh consumption from the standard model's, multiplies the difference by your electricity rate (the price of one kWh as a decimal amount, such as 0.15 rather than 15 cents), and multiplies again by the number of years you enter to project total savings — the same basic math behind the yellow EnergyGuide labels the U.S. FTC requires on new appliances and the ENERGY STAR program jointly run by the EPA and Department of Energy.

Homeowners comparing refrigerators, washers, dishwashers, or HVAC units before a purchase use it to see how much the lower electricity bills save each year and over the years entered. The tool does not take purchase prices, so to judge payback, divide the extra upfront price of the efficient model by the annual savings shown — since energy-use figures and local electricity rates vary, the payback period can range from under a year for lighting and small appliances to a decade or more for major HVAC upgrades.

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  • Editorial team

    Pick the rate carefully, because it drives every figure here. The number that matters is the price you save on each extra kWh you avoid: the energy charge plus any per-kWh delivery charges on your bill. Dividing the whole bill by total kWh blends in fixed monthly fees, which do not shrink when an appliance uses less, and that overstates your savings. If your plan has peak and off-peak prices, try both. What rate is on your latest bill, and which appliance are you weighing?

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