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.
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.
Adjust the inputs below — results update in real time. No sign-up required.
Enter your current fixtures and LED replacement details.
US commercial average is about $0.15/kWh.
Operating hours per day (e.g. offices 10, warehouses 16, retail 12).
Total number of fixtures to replace.
Watts per existing fixture (e.g. halogen, CFL, metal halide).
Watts per LED fixture delivering equivalent brightness.
Purchase price per LED fixture (installation excluded).
Get a custom quote from Tonghua Lighting — global B2B LED manufacturer. Response within 12 hours.
Transparent formulas based on standard energy and emissions factors. CO2 factor uses the US grid average of 0.707 kg CO2 per kWh.
Electricity cost per year for each fixture type.
Difference between current and LED annual cost.
Months needed to recover the LED purchase cost.
Annual emissions avoided by the wattage reduction.
Net savings over five years after subtracting the initial LED investment.
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.
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).
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.
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.
Get a free lighting layout design and product quote from our factory. B2B projects only.