About the Appliance Replacement Payback Calculator
This appliance replacement payback calculator tells you whether replacing an old refrigerator, freezer, washer, dryer, dehumidifier or air conditioner with an efficient model is worth it on energy savings alone. Enter how many kWh a year the old and new appliances use, your electricity rate and the price of the new one, and it works out the yearly savings, the payback period and the net benefit over the new appliance’s life.
If the old appliance is failing and you would buy a new one anyway, switch on “replacing anyway” and enter the price of a standard model: then only the extra cost of the efficient model has to be paid back, which is the fair comparison. Add rebates from your utility and any water or gas savings (dishwashers and front-load washers save water too).
Yearly kWh for a new appliance is printed on the yellow EnergyGuide label in the US. For an old one, measure it with a plug-in watt meter over a few days, or look up its model number; refrigerators from the 1990s and early 2000s commonly use 1,000–1,500 kWh a year versus 350–600 kWh for a new ENERGY STAR model.
With the default inputs, the payback period is 9.9 years. Change any value above to recalculate instantly.
How to use the appliance replacement payback calculator
- 1Enter the yearly kWh of the old appliance (measured or looked up) and the new one.
- 2Enter your electricity rate and expected yearly price increase.
- 3Enter the installed price of the new appliance and any rebates.
- 4Turn on “replacing anyway” if the old unit is failing and enter a standard model’s price.
- 5Read the payback period and net benefit over the appliance’s lifespan.
Formula and method
Yearly energy saved is the difference between the old and new appliance’s annual kWh. It is valued at your electricity rate, which grows by the yearly price increase, and any water or gas savings are added. The cost to recover is the new appliance’s price minus rebates — or, if you would replace the old one anyway, only the premium over a standard model.
The payback period is the point where cumulative savings equal that cost, interpolated within the year. Net benefit is total savings over the expected lifespan minus the cost. The calculation ignores disposal fees, financing and the time value of money, and assumes the old appliance would otherwise keep running with its current energy use.
- kWh_old
- Yearly energy use of the existing appliance
- kWh_new
- Yearly energy use of the replacement (EnergyGuide label)
- e
- Yearly electricity price increase
- other
- Other yearly savings such as water or gas
Worked examples
Replacing a working 2000s fridge
The old fridge uses 1,100 kWh a year and the new one 450, saving 650 kWh or $110.50 in year one. With rates rising 2% a year, the $1,200 fridge pays back in about 10 years and nets roughly $565 over a 14-year life.
Old fridge is failing — pay back only the premium
If you must buy a new fridge anyway, only the $300 premium over a $900 standard model counts, minus a $50 rebate. At $110.50+ a year in savings, that $250 is recovered in about 2.2 years.
Front-load washer with water savings
Saving 340 kWh at $0.20/kWh is worth $68 a year, plus $45 of water, for $113. The $950 washer pays back in about 8.4 years and nets $293 over an 11-year life.
Frequently asked questions
Is it worth replacing an old refrigerator that still works?+
Often only if it is very old or large. A fridge from the 1990s can use over 1,000 kWh a year versus 400–500 for a new ENERGY STAR model, saving around $100 a year at $0.17/kWh. At $1,200 that is roughly a 10-year payback, so many people wait until it fails.
How do I find how much energy my old appliance uses?+
Plug it into an inexpensive watt meter for several days and scale the kWh to a year, or look up the model number in the manufacturer’s specifications or the ENERGY STAR database. The yellow EnergyGuide label shows yearly kWh for new appliances.
Should I count the full price of the new appliance?+
Only if you would otherwise keep the old one running. If it is failing and you would buy something anyway, compare the efficient model with a standard one and pay back only the price difference; that usually gives a much shorter payback.
Which appliances give the fastest payback?+
Appliances that run constantly or use a lot of power: old second fridges and freezers, window air conditioners, dehumidifiers and electric water heaters (heat pump water heaters especially). Items used briefly, such as microwaves, rarely pay back on energy.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.