calcfig
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Is a New Refrigerator Worth It for the Electricity Saving?

An old refrigerator averaging 114 W replaced by one averaging 40 W saves about 648 kWh and $117.72 a year at 18.16 cents per kWh. At $900 the saving alone takes about 7.6 years to pay for it.

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$117.72
Payback7.6 years
Energy saved per year648 kWh
Net after 10 years$277.20

1 × (114 W − 40 W) × 24 h × 365 days ÷ 1,000 = 648.2 kWh a year. × 18.16¢/kWh = $117.72 a year. $900.00 ÷ $117.72 = 7.6 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 refrigerator, 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$4.91183.5 years
2 h$9.8191.7 years
4 h$19.6245.9 years
8 h$39.2422.9 years
24 h$117.727.6 years

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

Last checked 11/10/2026. Sources: U.S. Energy Information Administration: Electric Power Monthly, Table 5.6.A.

How the saving is worked out

A refrigerator cycles on and off, so use its average draw, not the number on the plate. 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 18.16 cents that is $117.72 a year. $900 ÷ $117.72 is 7.6 years, and the net after 10 years is $277.20.

What is assumed. The rate is the US average residential price from the EIA. The old unit is assumed to be a typical model from the 1990s. To find the real figure, measure it with a plug-in power meter for a day or two. 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 your old refrigerator is only a little less efficient, the saving shrinks and the payback passes the life of the new one. If you were going to replace it anyway, only the extra cost of the efficient model matters; enter that as the cost.

Common questions

Should I replace a working refrigerator?

The calculator only counts electricity. Disposal, a trade-in and what the old one would cost to repair are not included, so treat the result as one input.

Where do I get the average draw?

Use an energy label in kWh a year divided by 8.76, or measure it with a plug-in power meter. 1,000 kWh a year is about 114 W.

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