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LED Lighting ROI Calculator

Compare electricity costs and purchase-cost payback for an LED upgrade. Use measured fixture watts and your current electricity tariff for a useful estimate.

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

Use the energy rate from your electricity bill.

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

Prefer a website form? Contact Tonghua Lighting

Send your fixture list, quantities, and project location for a quote.

UNDERSTAND THE RESULT

Method, example & assumptions

Maintained by Tonghua Lighting · Updated

Annual electricity savings come from the difference in fixture watts, multiplied by fixture count, operating hours and electricity price. Payback here covers the LED purchase price only.

Calculation method

  1. Annual kWh saved = (old watts − LED watts) × count × hours/day × 365 ÷ 1,000
  2. Annual savings = annual kWh saved × price per kWh
  3. Payback (months) = LED unit price × count ÷ annual savings × 12

Worked example

Fifty fixtures changing from 60 W to 20 W, used for 12 hours/day at $0.15/kWh, save 8,760 kWh and $1,314/year. At $15 per new fixture, the $750 purchase cost pays back in about 6.8 months.

Further reading

FAQ

LED ROI Calculator FAQ

How do you calculate LED lighting ROI?

Annual electricity savings = (current watts − LED watts) × fixture count × hours/day × 365 ÷ 1,000 × price/kWh. This tool’s payback in months is LED purchase cost ÷ annual savings × 12. Installation, maintenance, incentives and financing are excluded.

What is a good payback period for LED lighting?

There is no single good payback period. Compare the estimate with your investment criteria and include installation costs, maintenance, and confirmed incentives.

How much CO2 does LED lighting save?

The tool multiplies saved kWh by 0.707 kg CO2/kWh as an illustrative factor. Use your location’s reporting factor for a formal carbon calculation.

Does this ROI calculator work for commercial projects?

Yes. This calculator works 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.

A practical next step

Compare the fixture cost behind your estimate.

Send the current and proposed fixture wattage, quantity, operating hours, and destination. Ask for model pricing to refine your payback estimate.