Appliance Replacement Payback Calculator
This simple payback estimate compares the annual energy bill difference with the net purchase cost. It excludes repairs, disposal, rebates that were not entered, financing and energy-price changes.
How to use this calculator
- Enter old appliance annual use (kwh), replacement annual use (kwh), net replacement cost, electricity price per kwh using the same measurement window and units.
- Check the result and intermediate values, then change one input at a time when comparing scenarios.
- Keep the stated scope and assumptions attached to any result you share.
Formula and method
Annual savings = (old annual kWh − new annual kWh) × electricity price; payback years = net cost ÷ annual savings.
- Estimated savings are €99.20 per year and simple payback is about 5.65 years.
- A positive simple payback does not establish the best purchase or lifetime value. Verify energy labels, warranties, disposal cost and realistic usage.
Worked examples
Worked example
An old appliance uses 720 kWh/year, a replacement 410 kWh/year, net cost €560 and energy €0.32/kWh.
Estimated savings are €99.20 per year and simple payback is about 5.65 years.
Estimated savings are €99.20 per year and simple payback is about 5.65 years.
Understanding the result
Estimated savings are €99.20 per year and simple payback is about 5.65 years.
A positive simple payback does not establish the best purchase or lifetime value. Verify energy labels, warranties, disposal cost and realistic usage.
Important notes
A positive simple payback does not establish the best purchase or lifetime value. Verify energy labels, warranties, disposal cost and realistic usage.
Use measured inputs or documented assumptions, and validate important decisions with the appropriate source specifications or professional guidance.
Frequently asked questions
Does payback include repairs?
No. Enter only net upfront cost and compare energy use; repairs would need a separate scenario.
What if savings are zero?
The calculator reports no positive energy-cost payback because division by zero would be invalid.
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This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.