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Home Energy Audit Savings Calculator

Enter your annual energy bill and expected savings to estimate your yearly savings.

How it is calculated

This is a simple percentage calculation on a yearly total. annual savings = annual bill × savings% / 100, five-year savings = annual savings × 5 and new bill = annual bill - annual savings. The bill is the sum of everything you spend on energy in twelve months (electricity, gas, heating oil), in dollars. The savings percentage is your own assumption of how much the recommended fixes will cut that bill. The five-year figure just multiplies one year by five: it assumes constant prices and consumption, ignores the cost of the audit and the repairs, and adds no interest. Both numbers must be greater than zero.

Worked example

A household spends $2,400 a year on energy and expects the audit's fixes to cut that by 15%. Annual savings: 2,400 × 15 / 100 = $360.00. New yearly bill: 2,400 - 360 = $2,040.00. Over five years: 360 × 5 = $1,800.00. If the fixes cost $1,800 to carry out, they would roughly pay for themselves in five years at this assumed rate.

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Common mistakes

  • Entering the monthly bill instead of the annual one, which understates the savings twelve-fold.
  • Typing the expected saving as a decimal (0.15) instead of a percent (15); the result is then 100 times too small.
  • Applying the percentage to only the heating bill but entering the total bill, or the reverse; the percentage must match the bill it refers to.
  • Treating the five-year figure as profit: it ignores what the audit and the upgrades cost, and a seasonal or price change would alter it.
  • Entering a savings percentage taken from a different home or climate without checking that the same fixes apply to yours.

About this calculator

A home energy audit (also called a home energy assessment) is a systematic inspection performed by a certified auditor — using a blower-door test, thermal imaging, and checks of insulation R-values, air sealing, and HVAC efficiency — to pinpoint exactly where a house wastes energy. Audits typically uncover savings of 5-30% on utility bills once the recommended fixes are made.

This calculator projects your annual savings from your current bill and an expected percentage reduction, so you can gauge whether an audit — and the improvements it recommends — will pay for itself. It's used by homeowners weighing the upfront cost of an audit, and by weatherization program administrators and utility companies running energy-efficiency rebate programs who need to estimate savings for participants.

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Comments (1)

  • Editorial team

    Savings estimates are uncertain, so run the tool twice, once with a cautious percentage and once with an optimistic one, and look at the range rather than a single number. Then divide the quote for the upgrades by the annual savings from each run to see a payback range in years. If the two paybacks are far apart, the audit's savings assumption deserves a second look. Which fixes did your audit recommend, and what saving did it estimate?

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