Home energy · Appliance decisions
What does an appliance cost per year?
Spread purchase, install, repairs and electricity, less resale value, over the years you own it to get one cost per year and per month.
Inputs
Starting values are illustrative, not current prices or specifications. Replace each with your own.
Result
Answer
Cost of ownership per year is purchase and install price, less resale value, plus repairs and running costs, divided by the years you keep the appliance. For the example appliance it is $175.00 a year, or $14.58 a month, over 10 years.
Worked example
Purchase $900 + install $100 − resale $100 = $900. Repairs $250. Electricity 400 kWh × $0.15 = $60.00 a year, × 10 years = $600.00. Total $1,750.00 ÷ 10 years = $175.00 a year, or $14.58 a month.
Formulas and notes
- Total = (price + install − resale) + total repairs + (yearly electricity + other yearly cost) × years. Per year = total ÷ years. Electricity per year = yearly kWh × price per kWh (DOE).
- Prices are held flat and not discounted. Financing cost, taxes and the value of your time are not included unless you add them to the price or other-cost fields.
- Starting values are illustrations. Use your receipt, repair history and EnergyGuide label or meter reading.
Planning estimate only, not professional advice. Sources, checked 2026-10-08: U.S. Department of Energy, Estimating Appliance and Home Electronic Energy Use (archived copy, 2024-12-31)
FAQ
How do I work out what an appliance costs per year?
Add the purchase and install price, subtract what you expect to get back on resale, add repairs and the energy and other running costs for the years you keep it, then divide by the years.
Does a longer life lower the cost per year?
Usually the up-front price spreads over more years, but repairs and electricity keep adding. Try different years of ownership to see the effect.
Where do I get the yearly kWh?
From the EnergyGuide label, a plug-in meter, or the watts times hours formula in the DOE guide.
Is resale value realistic?
It is your guess. Set it to 0 if you expect to scrap the appliance.
Can I use this to compare two models?
Yes. Run each model with its own price, repairs and yearly kWh and compare the cost per year.