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LED Payback Calculator


This calculator gives payback time, the annual and life-time energy AND maintenance savings when you upgrade your lighting to LEDs.  Enter the wattage and life for both the old and new fixture and the billing rate per kilowatt-hour.  Be sure to include all costs, i.e. labor, parts, inventory, etc.

Start with Tab key, fill in the shaded cells and/or step forward with Tab key.  (Shift Tab to step backward.)

1. Compute the total power (kilowatts, kW) saved by upgrading conventional lighting technology to LED technology.
Original Fixture
Wattage + Ballast
  LED
Wattage
  Watts Saved
per Fixture
  # of Fixtures
to Replace
   Power
Saved
W -  W =  W × = Label W
Label  kW
2. Compute the total energy (kilowatt hours, kWh) saved annually.
Total Kilowatts
Saved
Hours of Use
per Day
Days of Use
per Week
Weeks of Use
per Year
Total kWh
Saved per Year
Label kW × × × = Label
 
3. Compute the total energy cost savings per year.
Total kWh
Saved per Year
  Your Energy Cost
per kWh (typ. $0.10)
  Energy Cost Savings
per Year
Label kWh/yr × $ = $Label 
 
4. Compute energy cost savings over the life of the LED.
Replacement
LED Life (hours)
  Hours per Year
Usage
  LED Est. Life   Energy Cost Savings
per Year
  Lifetime Energy
Cost Savings
 Hr  ÷  Label hr/yr  =  Label  Years  ×  $Label  =  $Label
5. Compute payback from energy cost savings.
NOTE:  "LED cost" is the amount amortized in payback calculations.  It should include installation costs. 
It should be the difference between LED and the fixture it replaces (new installation).  Or, it may be the direct cost (retrofit).
Payback From
Energy Savings
= LED Cost, or, Difference between LED & Original = $ × Label Units = Label Years
Energy Cost Savings per Year $Label
 
Return on Investment
(ROI)
Based upon 100% =
repayment in year #1
= 100 = 100 = Label% 
Simple Payback Label 
 
6. Compute maintenance savings over the life of the LED.   Include labor, equipment, fuel, parts, inventory, etc.
LED
Life (hours)
  Original Fixture
Life (hours)
  # of
Fixtures
  Maintenance Labor
Original Fixture
  Maintenance Parts
Original Fixture
  Lifetime Savings
in Maintenance
Label ÷ × Label × ( $  + $  ) = $Label
7. Compute the amortized changeout cost savings per year.
Total Lifetime Replacement Cost Savings Lifetime of Replacement Fixture Total Amortized
Savings per Year
$Label ÷ Label Years  = $Label
 
Simple Payback on
Energy Consumption
And Maintenance Costs
=

Initial Cost of Upgrade =

Label × # of Fixtures =

 Label
  Years
Energy + Maintenance
Cost Savings
Label
 
Return on Investment
(ROI)
= 100 = 100 =  Label%
Simple Payback  Label

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LED Payback Calculator