calcfig
USUKAU

Is a New Fridge Worth It for the Electricity Saving?

An old fridge averaging 114 W replaced by one averaging 40 W saves about 648 kWh and $214.83 a year at 33.14 cents per kWh. At $1,000 the saving alone pays for it in about 4.7 years.

Try your own numbers

W

On the label or the bulb. Example values: a 50 W halogen and a 7 W LED.

W
h
$

Your own price. The starting figure is only a placeholder.

¢/kWh

Change the area above or type your own rate from your bill.

Saving per year$214.83
Payback4.7 years
Energy saved per year648 kWh
Net after 10 years$1,148.27

1 × (114 W − 40 W) × 24 h × 365 days ÷ 1,000 = 648.2 kWh a year. × 33.14¢/kWh = $214.83 a year. $1,000.00 ÷ $214.83 = 4.7 years.

Ignores price changes, bulb or appliance life and the time value of money. Heat from the old item may have been useful in winter.

Fig. 1 One fridge, 114 W to 40 W average draw, all day.

Every formula is tested against worked examples. How we check

Hours a daySaving per yearPayback
1 h$8.95111.7 years
2 h$17.9055.9 years
4 h$35.8027.9 years
8 h$71.6114 years
24 h$214.834.7 years

Fig. 2 The same upgrade used for more or fewer hours.

Last checked 10/11/2026. Sources: Australian Energy Regulator: The Default Market Offer (tariff caps 2026-27); Essential Services Commission (Victoria): Victorian Default Offer price review 2026-27.

How the saving is worked out

A fridge cycles on and off, so use its average draw. 114 W is about 1,000 kWh a year and 40 W about 350 kWh. The difference is 74 W running 24 hours on 365 days: 74 × 24 × 365 ÷ 1,000 = 648 kWh. At 33.14 cents that is $214.83 a year. $1,000 ÷ $214.83 is 4.7 years, and the net after 10 years is $1,148.27.

What is assumed. The rate is the Ausgrid usage rate from the AER Default Market Offer. The old unit is assumed to be a typical older model. Measure yours with a plug-in power meter for a day or two to find the real average. The wattages and the price of the new item are examples. Use the figures on your own bulbs, appliance label and receipt.

When the answer changes

If the old fridge is only slightly worse the payback gets much longer. If you were replacing it anyway, enter only the extra cost of the efficient model. A second fridge in the garage often runs hotter than you expect.

Common questions

What about the Energy Rating label?

It gives kWh a year. Divide by 8.76 to get average watts, then enter that.

Is the old fridge worth keeping as a second fridge?

The calculator shows what it costs to run. Enter its average draw as the old watts and 0 W for the new one to see the yearly cost.

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