Free calculator
How long will an efficiency upgrade take to pay back?
Divide the additional purchase and installation cost by realistic annual savings to estimate a simple payback period.
Efficiency upgrade payback
Estimate how long it takes energy savings to recover a higher replacement cost.
Moderate payback
Estimated payback: 5 years. The efficiency upgrade may be worth comparing closely.
Use the upgrade premium
Enter only the amount paid above the standard replacement you would otherwise buy, including installation differences.
Use realistic savings
Base annual savings on your climate, utility rates, usage, and the efficiency difference between the old and new equipment.
Check incentives separately
Rebates and tax credits can shorten payback, but confirm current eligibility before treating them as guaranteed savings.
For efficiency references and current program information, consult Energy Saver and ENERGY STAR.