Home energy · Lighting

How fast does an LED pay back?

Months to recover the price of LED bulbs from the energy saved, plus the old bulbs you stop buying, using your own watts, hours and rate.

Advertisement

Inputs

Starting values are illustrative, not current prices or specifications. Replace each with your own.

Enter the price on your bill, in your own currency.
Low end of the InterNACHI range for each type. Guidelines only.
InterNACHI gives 30,000 to 50,000+ hours; the low end is used.

Result

Answer

An LED saves the difference in watts times the hours it is on, at your price per kWh, plus the old bulbs you stop buying. For a 60 W bulb replaced by a 9 W LED on 3 hours a day at $0.15 per kWh, the saving is $9.47 a year and a $3 LED pays back in 3.8 months.

Worked example

Energy saved = (60 − 9) W × 3 h × 365 ÷ 1,000 = 55.8 kWh a year, × $0.15 = $8.38. The old bulb lasts 1,000 hours, so at 1,095 hours a year you buy 1.095 bulbs a year, $1 each = $1.09. Total $9.47 a year. A $3 LED pays back in $3 ÷ $9.47 = 3.8 months. At 30,000 hours the LED lasts 27.4 years, for a net saving of $256.50.

Formulas and notes

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) · InterNACHI, Standard Estimated Life Expectancy Chart for Homes

FAQ

How long does an LED bulb take to pay for itself?

Divide the LED price by the yearly saving from lower watts and from not buying old bulbs. In the example it is 3.8 months.

How long do LED bulbs last compared with incandescent?

InterNACHI lists LED bulbs at 30,000 to 50,000+ hours and incandescent at 1,000 to 2,000+ hours, as guidelines only.

Does this account for the old bulb I would have bought?

Yes. The avoided purchase is the yearly hours divided by the old bulb's life, times its price.

What if I use the light only a little?

Lower the hours per day. Payback gets longer because less energy is saved, but the LED also lasts more years.

How do I know my LED watts?

It is printed on the bulb or the package.

Advertisement
Advertisement