Appliance replacement payback
See how long electricity savings could take to cover an extra purchase cost.
Reference: Ofgem GB average Direct Debit rate, 1 October–31 December 2026: 26.32p/kWh. Checked 8 November 2026. Use your own bill; regional and payment-method rates differ, and Northern Ireland has a separate market. Annual costs hold the entered rate constant; they are not a forecast. Standing charges are excluded. For time-of-use tariffs, calculate each rate's consumption separately and add the costs.
Your replacement estimate
220.0 kWh per year · 26.32p per kWh
£73.70 annual saving · 4.1 years to recover the extra cost.
Simple payback excludes repairs, financing, disposal and future tariff changes.
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Home Cost Wise - User-entered estimate, not a bill or product test. Rates and usage can change. Source and method: www.homecostwise.co.uk/methodology/
Worked example: Recovering an extra purchase cost
These fixed teaching inputs are separate from the editable calculator above and are not current tariff or product claims.
- Inputs
- Existing: 500kWh/year; replacement: 200kWh/year; extra installed purchase cost: £300.
- The working
- (500 − 200) × £0.25 = £75/year saved. £300 ÷ £75/year = four years.
- The result
- £75.00 annual electricity saving and 4 years of simple payback. No future tariff, repair or lifetime is guaranteed.
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How this calculator works
Annual saving = (old annual kWh − new annual kWh) × tariff in pence ÷ 100. Simple payback = extra upfront cost ÷ annual saving. If the saving is zero or negative there is no positive payback. Compare equivalent capacity and service.
Cost in pounds = energy in kWh × electricity rate in pence ÷ 100. Monthly costs are annual costs divided by 12; daily costs are divided by 365. These are averages over a year. Calculations retain precision until display rounding.
Get a more useful estimate
Read our step-by-step guide to measuring appliance electricity before treating a nameplate rating as a measured average.
Start with the rate on your bill and energy information for your exact model. A plug-in energy monitor can help measure suitable plug-in appliances; follow its safety instructions and power limits. Do not apply full-power wattage for 24 hours to a cycling fridge or freezer.
What is excluded?
The day/night comparison includes the standing charges you enter; appliance-only tools exclude them. Gas, water, detergent, maintenance, discounts and purchase costs are excluded unless the tool explicitly asks for a purchase premium. Usage and tariffs can change. The reference tariff covers Great Britain and does not represent Northern Ireland or every contract.
Read our sources and assumptions →Common questions
How is appliance replacement payback calculated?
Calculate the annual electricity saving, then divide the extra upfront cost by that saving. If an appliance saves 300kWh a year at 25p/kWh, the saving is £75 a year. A £300 extra cost would take four years to recover if those assumptions stay constant.
Should I enter the full purchase price or just the price difference?
For two options you already intend to buy, enter the additional installed cost of the more expensive option. To compare replacing a working appliance with keeping it, enter the full additional replacement cost. Simple payback excludes financing, repairs, disposal and future tariff changes.