Home energy · Appliance decisions
Will a newer appliance pay for itself?
Compare the yearly kWh on your old appliance with a new one, subtract rebates and trade-in, and see the payback in years.
Inputs
Starting values are illustrative, not current prices or specifications. Replace each with your own.
Result
Answer
Payback is the net price of the new appliance divided by the yearly energy it saves in money. With 700 kWh a year for the old unit, 400 for the new one, $0.15 per kWh and an $800 net outlay, the saving is $45.00 a year, so the payback is 17.8 years. Your labels and rate decide whether an upgrade repays itself.
Worked example
Energy saved = 700 − 400 = 300 kWh a year (43% less). 300 × $0.15 = $45.00 a year. Net outlay = $900 price − $100 rebate − $0 trade-in = $800. Payback = $800 ÷ $45.00 = 17.8 years. Over 12 years the savings total $540.00, which is -$260.00 against the outlay.
Formulas and notes
- Yearly saving = (old kWh − new kWh) × price per kWh + other yearly saving. Net outlay = new price − rebate − trade-in. Simple payback = net outlay ÷ yearly saving; with a yearly price rise the saving grows each year and payback is found year by year.
- Take the new unit's kWh from its EnergyGuide label. The ENERGY STAR dishwasher page points to the yellow EnergyGuide label for a model's energy use and annual operating cost. Take the old unit's kWh from a plug-in meter, old label or manual.
- Energy savings are one reason to replace; reliability and features are others. Starting values are illustrations. Planning estimate only.
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) · ENERGY STAR, Dishwashers
FAQ
How do I know if replacing an old appliance will pay off?
Compare yearly kWh for the old and new unit, multiply the difference by your price per kWh, and divide the net price of the new one by that saving. If the payback is longer than the new unit's life, energy savings alone do not justify it.
Where do I find an appliance's yearly kWh?
On the yellow EnergyGuide label for many new appliances. For an older unit, use a plug-in meter reading, its manual, or the DOE watts times hours method.
Does the result include water savings?
Only if you enter them in the other yearly saving field.
What if electricity prices rise?
Set a yearly price rise percentage. The savings grow each year and the payback shortens.
Is the new appliance certified ENERGY STAR?
Use the ENERGY STAR certified lookup to check a model number.