ENERGY STAR Appliance Savings Calculator: Running Cost, Payback and Lifetime Savings
Compare an ENERGY STAR appliance with a standard model: yearly electricity and water cost, payback on the price premium after rebates, lifetime and present-value savings with rising power prices, life-cycle cost and CO₂ avoided. Uses the kWh from the EnergyGuide label or a percentage saving.
How it works
Running cost = yearly kWh × rate · Annual saving = standard cost − ENERGY STAR cost (+ water saved × water price) · Premium = extra cost − rebates · Payback = premium ÷ annual saving · Lifetime net = Σ yearly savings over the life − premium (yearly saving × (1 + price rise)ʸ⁻¹ when prices rise) · Present value = Σ saving ÷ (1 + discount rate)ʸ − premium · CO₂ = kWh saved × 0.672 kg/kWh
An ENERGY STAR appliance usually costs a little more to buy and less to run, so the question is whether the running-cost saving repays the price premium within the appliance’s life. Multiplying each model’s yearly kilowatt-hours by your electricity rate turns the EnergyGuide label into money; dividing the premium (after any rebate) by the yearly saving gives the payback time. If you only know that the efficient model uses a certain percentage less, choose “% saving”. ENERGY STAR states that certified refrigerators are about 9% more efficient than the federal minimum, clothes washers use about 20% less energy and 30% less water, and heat-pump dryers about 70% less energy than conventional dryers. Replacing a refrigerator that is more than 15 years old usually saves much more than replacing a recent standard one. Under More options you can let electricity prices rise each year, which shortens the payback, and set a discount rate to see the present value of the savings, which accounts for money now being worth more than money later. Washers and dishwashers can also save water; enter both models’ yearly water use and your combined water and sewer price. The CO₂ figure uses the EPA’s national factor for electricity reduced (0.672 kg per kWh, eGRID 2022 data). The default rate of $0.18 per kWh is close to the US average EIA expects for 2026; your own bill gives a better figure.
Worked example
A standard refrigerator using 700 kWh a year against an ENERGY STAR one at 500 kWh, at $0.18 per kWh, costs $126.00 against $90.00 to run, a $36.00 yearly saving. A $120 price premium pays back in 120 ÷ 36 = 3.3 years, and over a 12-year life the efficient model nets 36 × 12 − 120 = $312. It also avoids 200 × 0.672 = 134 kg (296 lb) of CO₂ a year.
Sources: ENERGY STAR: refrigerators key product facts · ENERGY STAR: clothes washers · ENERGY STAR: clothes dryers · EIA Short-Term Energy Outlook: electricity prices · EPA: Greenhouse Gas Equivalencies Calculator, calculations and references · Penn State EGEE 102: life cycle cost analysis
Frequently asked questions
Is it worth paying more for an ENERGY STAR appliance?
Usually, for appliances that run all the time or use a lot of energy, such as refrigerators, freezers, washers and dryers, where the yearly saving repays the premium in a few years. For an appliance you rarely use, the payback can outlast the product, so check the numbers with your own rate and use.
Where do I find an appliance’s yearly kWh?
The yellow EnergyGuide label required on most US appliances shows estimated yearly electricity use in kWh and an estimated yearly operating cost. The same figures are in the ENERGY STAR product finder and on manufacturers’ spec sheets.
How much does an ENERGY STAR refrigerator save?
ENERGY STAR says certified refrigerators are about 9% more efficient than models meeting the federal minimum. The bigger saving comes from replacing an old one: a refrigerator over 15 years old can cost about $95 more a year to run, according to ENERGY STAR.
Do rebates change the math?
Yes. Utility and government rebates on efficient appliances reduce or erase the price premium and shorten the payback. Enter them under “Rebates and tax credits”; if they exceed the premium, the efficient model pays for itself immediately.
Why does the payback change when electricity prices rise?
Every kWh you avoid is worth more when the rate goes up, so the yearly saving grows and the premium is recovered sooner. Set the yearly price increase under More options to test a rising-price scenario.
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Savings are estimates based on the figures you enter; real use, local rates and appliance condition change the result.