Calculator Inputs
Use the responsive grid below. Large screens show three columns, smaller screens show two, and phones show one.
Example Data Table
| Item | Example Value |
|---|---|
| Baseline equipment load | 120 kW |
| Improved equipment load | 90 kW |
| Number of units | 2 |
| Operating hours per day | 10 hours |
| Operating days per year | 300 days |
| Electricity rate | $0.14 per kWh |
| Demand charge rate | $12.00 per kW-month |
| Coincidence factor | 0.85 |
| Baseline maintenance per year | $4,200 |
| Improved maintenance per year | $2,600 |
| Implementation cost | $22,000 |
| Rebate | $3,000 |
| Analysis period | 7 years |
Formula Used
Annual Hours = Operating Hours per Day × Operating Days per Year
Annual Energy Saved = (Baseline kW − Improved kW) × Quantity × Annual Hours
Energy Cost Savings = Annual Energy Saved × Electricity Rate
Demand Savings = kW Saved × Coincidence Factor × Demand Charge × 12
Maintenance Savings = Baseline Maintenance − Improved Maintenance
Year 1 Total Savings = Energy Cost Savings + Demand Savings + Maintenance Savings
Net Project Cost = Implementation Cost − Rebate
Simple Payback = Net Project Cost ÷ Year 1 Total Savings
NPV = Discounted Multi-Year Savings − Net Project Cost
ROI = (Life-Cycle Net Savings ÷ Net Project Cost) × 100
How to Use This Calculator
- Enter the baseline connected load for the current system.
- Enter the improved load for the proposed upgrade.
- Add unit count, operating schedule, and utility rates.
- Include demand charges, maintenance costs, and incentives.
- Set the study horizon, escalation values, and discount rate.
- Submit the form to view savings above the calculator.
- Use CSV or PDF export for proposals and audits.
Frequently Asked Questions
1. What does this calculator estimate?
It estimates annual energy savings, demand reduction value, maintenance savings, payback, net present value, return on investment, and carbon reduction from equipment upgrades.
2. Why do demand charges matter?
Many facilities pay for peak demand, not only energy use. Lower connected load can reduce monthly demand charges and improve total project economics.
3. What is the coincidence factor?
It reflects how much of the saved load actually affects billed peak demand. A factor of 1 means full peak impact. Lower values mean partial impact.
4. Can this calculator compare multiple units?
Yes. Enter the unit quantity to model grouped equipment upgrades, such as pumps, fans, compressors, or production assets operating under similar schedules.
5. What does NPV show?
NPV discounts future savings into present-value terms. A positive result means the upgrade creates value after considering project cost and the chosen discount rate.
6. How is ROI different from payback?
Payback shows how quickly the project recovers cost. ROI shows overall gain across the full study period after subtracting the net project investment.
7. Should I include rebates and incentives?
Yes. Incentives reduce net project cost and often improve payback. Include any verified utility rebate, grant support, or internal capital contribution.
8. Can this tool support project proposals?
Yes. The summary metrics, savings schedule, and export options help support engineering reviews, internal approvals, capital requests, and client-facing proposal documents.