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Lighting ROI Tool

LED Lighting ROI Calculator

Estimate the true return on your LED upgrade. Enter your current fixtures and LED replacement specs to instantly see annual energy savings, payback period, CO2 reduction, and 5-year net savings.

Annual Savings Payback Period CO2 Reduction 5-Year Savings
Free Tool

Calculate Your LED Upgrade Savings

Adjust the inputs below — results update in real time. No sign-up required.

Your Lighting Setup

Enter your current fixtures and LED replacement details.

$/kWh

US commercial average is about $0.15/kWh.

hrs/day

Operating hours per day (e.g. offices 10, warehouses 16, retail 12).

units

Total number of fixtures to replace.

W

Watts per existing fixture (e.g. halogen, CFL, metal halide).

W

Watts per LED fixture delivering equivalent brightness.

$/unit

Purchase price per LED fixture (installation excluded).

Annual Energy Savings
$0.00
Saved every year after switching to LED
Payback Period
months to recover investment
CO2 Reduction
0 kg/yr
emissions avoided per year
5-Year Net Savings
$0.00
after deducting initial cost
Annual Energy Cost Comparison
Current Fixtures $0.00
LED Replacement $0.00
Energy use down 0% Initial investment $0.00
Get LED Upgrade Quote

Get a custom quote from Tonghua Lighting — global B2B LED manufacturer. Response within 12 hours.

Methodology

How LED ROI Is Calculated

Transparent formulas based on standard energy and emissions factors. CO2 factor uses the US grid average of 0.707 kg CO2 per kWh.

Annual Energy Cost

Electricity cost per year for each fixture type.

(W × qty × hrs × 365 ÷ 1000) × $/kWh

Annual Savings

Difference between current and LED annual cost.

current annual cost − LED annual cost

Payback Period

Months needed to recover the LED purchase cost.

(LED price × qty) ÷ (annual savings ÷ 12)

CO2 Reduction

Annual emissions avoided by the wattage reduction.

(W diff × qty × hrs × 365 ÷ 1000) × 0.707 kg

5-Year Total Savings

Net savings over five years after subtracting the initial LED investment.

(annual savings × 5) − (LED price × qty)
FAQ

LED ROI Calculator FAQ

How do you calculate LED lighting ROI?

LED lighting ROI compares the annual electricity cost of your current fixtures against the LED replacement. Annual savings = ((current watts − LED watts) × quantity × hours per day × 365 ÷ 1000) × electricity rate. Payback period = total LED investment ÷ monthly savings. Our calculator runs all of this automatically as you type.

What is a good payback period for LED lighting?

A payback period of 1 to 3 years is typical for commercial LED upgrades. Industrial and warehouse projects with long daily operating hours often pay back in under 12 months. Anything under 24 months is considered an excellent investment, since LED fixtures typically last 50,000+ hours (well beyond the payback point).

How much CO2 does LED lighting save?

LED lighting reduces CO2 by approximately 0.707 kg per kWh saved (US grid average). For example, replacing 50 fixtures of 60W with 20W LEDs running 12 hours a day saves about 6,193 kg of CO2 per year — roughly equivalent to taking 1.3 passenger cars off the road annually.

Does this ROI calculator work for commercial projects?

Yes. This calculator is designed for both residential and commercial LED retrofits. Enter your fixture quantity, wattages, operating hours, electricity rate, and LED unit price to get savings, payback period, and CO2 reduction instantly. For large commercial projects, request a custom quote and our engineers can provide a detailed photometric layout and DIALux report.

Need Help with Your Lighting Project?

Get a free lighting layout design and product quote from our factory. B2B projects only.