LED Savings Calculator

Compare the electricity cost of an old bulb with an LED bulb and see how fast the upgrade pays back.

This is handy for home lighting upgrades, office retrofits, and quick payback checks before buying new bulbs.

Savings Result

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Annual savings: --
Payback time: --
Old annual cost: --
LED annual cost: --

Run the calculation to see the savings breakdown.

Quick Answer

LED savings come from using fewer watts for the same lighting hours. The bigger the watt gap and the higher the electricity rate, the faster the payback.

How to Calculate LED Savings

  1. Enter the wattage of the old bulb and the LED bulb.
  2. Add your daily usage and electricity rate.
  3. Compare the annual operating cost for each bulb.
  4. Divide the extra upfront cost by the yearly savings to estimate payback.

Formula

Annual cost = (watts / 1000) x hours per day x days per year x electricity rate

Annual savings = old annual cost - LED annual cost

Payback time = (LED price - old bulb price) / daily savings

Worked Examples

Example 1: A 60 W bulb replaced by a 9 W LED for 5 hours per day at $0.18/kWh saves about $16.54 per year.

Example 2: A 75 W bulb replaced by a 10 W LED used 8 hours per day pays back faster because the energy gap is larger.

Example 3: A frequently used kitchen light often saves more than a rarely used closet bulb.

How to Interpret Your Results

Output Meaning Action
Higher savingsThe LED uses much less power or runs many hours each day.LED replacement is usually worth it.
Long paybackThe bulb is rarely used or the price gap is large.Focus on lights with longer run times first.
Negative savingsThe LED costs more to run, which should be rare.Check the wattage and electricity rate inputs.

Frequently Asked Questions

They produce the same light with much less electricity, so the annual operating cost is lower even if the bulb costs more upfront.

Use the rate from your bill or a reasonable local average. Small changes in the rate change the savings estimate, but the relative comparison still helps.

Yes. The payback calculation compares the extra upfront cost of the LED against the money saved on electricity over time.

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References