Efficiency Savings Payback Calculator

Estimate simple payback when a replacement would reduce an ongoing operating cost.

Estimate simple payback when a replacement would reduce an ongoing operating cost.

Efficiency Savings Payback Calculator

Enter your assumptions
Simple payback
Payback months
Five-year gross savings

Formula

Simple payback years = incremental replacement cost ÷ annual operating savings

How to use the result

Verify energy or operating-cost assumptions for the actual model and usage. Simple payback ignores financing, future price changes and time value of money.

What the calculator does not know

This site does not diagnose faults or provide repair instructions. Stop using items that may be unsafe, recalled, electrically hazardous, fire-damaged, structurally compromised, leaking dangerous substances or otherwise safety-critical, and follow manufacturer, recall-authority and qualified service-professional guidance.

Improve the estimate

Keep the inputs used for the decision and compare the estimate with actual results. A simple calculator is most useful when it makes the assumptions visible enough to learn from the difference.