HVAC
HVAC Replacement ROI Calculator
Compare the cost of replacing a system against the running cost saving, so the decision rests on the customer's own numbers.
Result
Savings are modelled on the SEER ratio alone. Real results also depend on ductwork, insulation, thermostat behaviour, local energy prices and how the system is sized, so present this as an estimate, never a guarantee.
See lead follow-upWhat moves the number
- Actual running cost today, from bills rather than from assumptions.
- Installed cost including any electrical, duct or venting work the change requires.
- Remaining life of the existing system, which is the real alternative being compared against.
Where this one goes wrong
Presenting replacement as the obvious answer. A working system with life left in it is a legitimate option, and a comparison that only models replacement is a sales document rather than an analysis. Show what repairing and keeping it looks like too.
Questions
About this calculator
Does this tell me whether to replace?
No. It shows what the energy saving is worth against the cost so the customer can weigh it. Comfort, reliability, refrigerant availability and how long they intend to stay all matter and none of them are in the arithmetic.
What is usually left out of a replacement price?
Electrical work, duct modifications, venting changes on a higher efficiency appliance, permits and disposal. Any of them can be significant and all of them belong in the comparison.
How should the existing system be valued?
By its remaining life and its likely repair spend. Replacing a system with years left is a different decision from replacing one that is failing, and the comparison should say which it is.
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Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Current system efficiency (SEER) (SEER). Systems from the 1990s and 2000s are often 8–12 SEER.
- New system efficiency (SEER) (SEER). Enter your own figure; the page starts at 17 SEER.
- Current annual cooling & heating cost ($). Enter your own figure; the page starts at $2,100.
- Installed cost of the new system ($). Enter your own figure; the page starts at $9,500.
- Rebates and tax credits ($). Enter your own figure; the page starts at $1,200.
- Expected system life (yrs). Enter your own figure; the page starts at 15 yrs.
The result updates as you type, so you can try a figure, see what it does to estimated annual energy saving, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Current system efficiency (SEER) | 10 SEER |
| New system efficiency (SEER) | 17 SEER |
| Current annual cooling & heating cost | $2,100 |
| Installed cost of the new system | $9,500 |
| Rebates and tax credits | $1,200 |
| Expected system life | 15 yrs |
What comes out
| Result | Value |
|---|---|
| Estimated annual energy saving main result | $864.71 |
| Payback period | 9.6 years |
| Net cost after rebates | $8,300 |
| Lifetime net benefit | $4,671 |
Going from 10 to 17 SEER saves roughly $864.71 a year, paying back the net cost in 9.6 years and returning $4,671 over 15 years.
How sensitive the answer is
Holding everything else steady and changing only current annual cooling & heating cost, this is what happens to estimated annual energy saving. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Current annual cooling & heating cost ($) | Estimated annual energy saving |
|---|---|
| $1,050 | $432.35 |
| $1,575 | $648.53 |
| $2,100 example above | $864.71 |
| $3,150 | $1,297 |
| $4,200 | $1,729 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Current system efficiency (SEER) (SEER)
- Systems from the 1990s and 2000s are often 8–12 SEER.
- New system efficiency (SEER) (SEER)
- Measured in SEER, between 5 and 40, starting at 17 SEER.
- Current annual cooling & heating cost ($)
- A money amount, starting at $2,100.
- Installed cost of the new system ($)
- A money amount, starting at $9,500.
- Rebates and tax credits ($)
- A money amount, starting at $1,200.
- Expected system life (yrs)
- Measured in yrs, between 1 and 40, starting at 15 yrs.
What the results tell you
| Result | What it is |
|---|---|
| Estimated annual energy saving | The headline result. A money figure. |
| Payback period | A number. |
| Net cost after rebates | A money figure. |
| Lifetime net benefit | A money figure. |
Before you rely on this number
Sizing, capacity and load figures here are planning estimates. A real installation depends on the manufacturer's data for the specific equipment, the duct system it is going into, and a proper load calculation for the building. Use this to sanity-check a number or price a job, not to select equipment.
Keep going
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