How the Calculator Works
This calculator estimates how quickly an LED lighting upgrade pays for itself by comparing the wattage you save against the upfront cost of the new bulbs.
Annual kWh Saved = (Old Wattage − LED Wattage) × Bulb Count × Hours per Day × 365 / 1000Annual Cost Saved: Annual kWh Saved × Electricity Rate.
Upfront Cost: Bulb Count × LED Cost.
Payback Period: Upfront Cost ÷ (Annual Cost Saved ÷ 12), in months.
Worked Example
- 18 bulbs, 60W old vs. 9W LED: saves 51W per bulb.
- At 4 hours/day, that's about 1,340.3 kWh saved per year.
- At $0.20/kWh, annual savings are about $268.06.
- With an upfront cost of $72 (18 × $4), payback is about 3.2 months.
Interpretation Guide
| Payback Period | Meaning | Action |
|---|---|---|
| Under 12 months | Fast payback. | Excellent upgrade — proceed right away. |
| 12-24 months | Good payback. | Solid investment, worth doing. |
| 24-36 months | Moderate payback. | Reasonable, but review usage hours first. |
| 36+ months or never | Slow payback. | Look for cheaper bulbs or a higher-use fixture. |