HVAC and refrigeration
Cooling equipment efficiency payback
Compare entered annual kWh for two quoted cooling options.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
incremental price/((old kWh-new kWh)*rate-extra maintenance).
Annual energy values are supplied for equal delivered service and conditions. No cooling capacity sizing, certified forecast or refrigerant advice.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Additional installed investment (selected currency): Incremental installed cost above baseline option.
- Existing annual measured energy (kWh/year): Integrated energy meter/bill reading for the isolated stated scope and period. Do not multiply an integrated kWh reading by duty again.
- Proposed annual energy for equal service (kWh/year): Proposed annual kWh for equal delivered service/conditions; identify any modelled estimate.
- Electricity price per kWh (selected currency): Matching energy/volumetric tariff or bill component for electricity price per kwh, excluding fixed charges or other charges not modeled.
- Additional annual maintenance (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for additional annual maintenance. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Annual net operating savings is $1,100.00 for the illustrative inputs below.
Example inputs
- Additional installed investment: $5,000.00
- Existing annual measured energy: 20,000.00 kWh/year
- Proposed annual energy for equal service: 12,000.00 kWh/year
- Electricity price per kWh: $0.15
- Additional annual maintenance: $100.00
- Annual net operating savings
- $1,100.00
- Simple payback
- 4.55 years
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Compare entered annual kWh for two quoted cooling options.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.