LED Lighting Savings Calculator

Turn old bulbs into measurable monthly savings fast. Enter your usage and rates for clarity. See payback, cash flow, and greener comfort every year.

Calculator
Large screens show three columns. Smaller screens show two, then one.
Total fixtures you will convert to LED
Example: 60W incandescent or 14W CFL
Match brightness using lumens, not watts
Average daily runtime
Use 260 for weekdays only
Check your bill for the blended rate
Replacement purchase price
Upfront LED purchase price
Incandescent often ~1,000 hours
Common ratings: 10,000–25,000 hours
Optional labor or contractor fee
Utility incentives or coupons
How long you want to compare costs
Optional forecast of rising energy prices
Used for NPV; set 0 to ignore discounting
Reset
How to use this calculator
  1. Enter how many bulbs you plan to switch to LED.
  2. Add current and LED wattage for similar brightness levels.
  3. Set daily hours, yearly days, and your electricity rate.
  4. Include bulb prices, lifespans, and any install cost.
  5. Add rebates, time horizon, and optional escalation/discount.
  6. Press Calculate to view savings, NPV, and payback above.
Formula used
Yearly energy (kWh)
kWh = (Wattage ÷ 1000) × Hours per day × Days per year × Number of bulbs
Year 1 energy cost
Cost = kWh × Electricity rate
Estimated replacements over the analysis period
Replacements ≈ ceil((Hours per year × Years) ÷ Lifespan hours) − 1
Upfront cost
Upfront = (LED bulb cost × Bulb count) + Install cost − Rebates
NPV
NPV = Σ(Yearly savings ÷ (1 + Discount rate)year) − Upfront
Example data table
Sample inputs and a typical output snapshot.
Example input Value Example output Value
Bulbs20 Annual kWh saved~1,489.60
Old vs LED wattage60W → 9W Year 1 energy savings~$238.34
Usage4 hours/day, 365 days Simple payback~1–2 years
Rate$0.16/kWh NPV (5 years, 0% discount)Positive in many cases
Your results will vary based on usage patterns, rates, and bulb prices.
Notes and assumptions

Annual energy use comparison

Lighting energy is driven by wattage, run time, and bulb count. A 60‑watt lamp used four hours daily consumes about 87.6 kWh yearly. Swapping to a 9‑watt LED drops that to roughly 13.1 kWh. Across twenty bulbs, the annual reduction is near 1,489.6 kWh, which is a meaningful load cut for most homes and small offices.

Cost impact at common rates

Electricity prices convert kWh into dollars. At $0.16 per kWh, saving 1,489.6 kWh equals about $238 in year‑one energy savings. If your blended rate is $0.10, the same reduction is about $149. If your rate is $0.25, savings rise to about $372. This sensitivity is why the calculator asks for your exact tariff.

Replacement cycles and maintenance

Rated lifespans influence replacement spending and downtime. A 1,000‑hour incandescent may require several replacements over a multi‑year horizon, while a 15,000‑hour LED can run many years with minimal changes. When bulbs are hard to access, fewer replacements can also reduce labor time and disruption, which the install‑cost field can approximate.

Payback and multi‑year value

Upfront cost is typically LED purchase price plus any installation, minus rebates. Simple payback is reached when cumulative yearly savings exceed that upfront amount. Over five to ten years, escalating electricity prices can increase the savings stream, while discounting can translate future savings into present‑value terms through NPV. Small upgrades often deliver reliable savings with low risk.

Using results for decisions

Use the year‑by‑year table to validate assumptions and spot break‑even timing. Compare old versus LED total costs to see whether savings come primarily from energy or from avoided replacements. For budgeting, focus on total savings, NPV, and payback together, and consider updating inputs when rates, hours, or bulb prices change.

FAQs

Q: Does the calculator include bulb replacement costs?

Yes. It estimates replacements from total operating hours and each bulb’s rated lifespan, then spreads that cost across the analysis period to keep yearly totals readable.

Q: What if my LED is brighter or dimmer than the old bulb?

Match by lumens, not watts. If the LED is brighter than needed, choose a lower‑watt model or reduce bulb count to reflect the same light level.

Q: How are rebates handled?

Rebates reduce the upfront cost. Enter utility incentives, coupons, or bulk discounts as a total amount so payback and NPV reflect your net out‑of‑pocket expense.

Q: Why is there an electricity escalation rate?

Rates often change over time. Escalation increases projected energy and replacement costs each year, so long‑term savings can be higher than year‑one savings.

Q: What does NPV tell me here?

NPV converts future yearly savings into today’s dollars using your discount rate, then subtracts upfront cost. A positive NPV means the upgrade creates value at that discount rate.

Q: Can I use this for commercial facilities?

Yes. Increase bulb count and hours/day to match your site. For large buildings, consider segmenting by bulb type or zone and running separate scenarios for higher accuracy.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.