ROI Calculator

This calculator will determine the annual energy cost savings and life-time energy cost savings when you upgrade to a newer LED type bulbs. You can also calculate the savings due to the longer bulb life. Use this sheet for each bulb type upgraded. It requires the wattage and bulb life for both the old and new bulb and the local cost per kilowatt-hour (average of $0.10 though can be as low as $.04 or up to $0.14 in California). Additionally you'll need the cost to change a single light bulb and the cost of the initial install of the LED light bulb. You may want to include all of the costs of changing bulbs such as labor, inventory, warehousing and purchasing/accounting.

Fill in the highlighted cells and your savings will be calculated automatically.

 
1. Compute the total power savings in kilowatts (kW) after upgrading older Bulbs to energy saving LED bulbs
Original
Bulb Wattage		   Replacement
Bulb Wattage		   Watts Saved
per Bulb		   # of Bulbs
to Replace		   Total Watts
Saved		 Total Kilowatts
Saved
W   -  W   =  W   X  Bulbs   Label W / 1000 Label  kW
                   
2. Compute the total energy (kilowatt hours, kWh) saved annually by performing this upgrade
Total Kilowatts
Saved		   Hours of Use
per Day		   Days of Use
per Week		   Week of Use
per Year		   Total kWh
Saved per Year		  
Label kW   X  hrs/day  X   day/week X  wks/yr = Label kWh/yr  
                   
3. Compute the total energy cost savings per year
Total kWh
Saved per Year		   Your Energy Cost
per kWh (typically $0.10)		   Total Energy Cost
Savings per Year		          
Label kWh/yr  X  $  =  $Label           
                   
4. Compute the lifetime energy cost savings 
Replacement
Bulb Life (hours)		   Hours per Year
Usage		   Total Energy Cost
Savings per Year		   Lifetime Energy
Cost Savings		      
 Hr  /  Label hr/yr  X   $Label  =  $Label      
                   
Simple Payback on = Initial Cost of LED Light Bulb = $  X Label Bulbs = Label years   
Energy Consumption   Total Energy Cost Savings per Year   $Label      
                   
Return on Investment = 100     = 100 = Label%   
(ROI)   Simple Payback       Label       
                   
5. Compute the lifetime labor/inventory/acquisition costs savings from upgrading to longer life LED replacements
Replacement
Bulb Life (hours)		   Original
Bulb Life (hours)		   Labor Cost to
Change Original Bulb		   Cost of
Original Bulb		   # of Bulbs
to Replace		   Cost to Install
Replacement
LED Bulb		   Total Lifetime
Bulb Changing
Cost Savings
Label Hr  /  Hr  X ($ + $) X Label Bulbs  - $ = $Label
                   
6. Compute the amortized bulb changing cost savings per year
Total Lifetime Replacement Cost Savings Total Lifetime of Replacement Bulb Total Amortized Replacement
Cost Savings per Year
$Label / Label years  = $Label  
                   
Simple Payback on = Initial Cost of Lighting Upgrade = Label = Label Years
Energy Consumption
Plus Replacement Costs		 Total Energy +
Replacement Cost Savings per year		 Label
                   
Return on Investment = 100 = 100 = Label%
(ROI) Simple Payback Label