How Much Do LED Bulbs Save? Per Bulb, Per Year and Payback
Swapping one 60 W incandescent bulb for a 9 W LED saves about $9.49 a year if the light is on 3 hours a day and you pay 17¢ per kWh, because the LED uses 85% less energy for the same light. Across 20 bulbs that is $189.87 a year, and at $3.00 a bulb the LEDs pay for themselves in about 3.8 months. The LED bulb savings calculator works it out for your own bulbs, hours and price.
How to work out what an LED saves
- Find the watts saved per bulb: 60 W − 9 W = 51 W.
- Turn it into kWh a year: 51 W × 3 hours × 365 days ÷ 1,000 = 55.8 kWh.
- Multiply by your price per kWh: 55.8 kWh × $0.17 = $9.49 a year for one bulb.
- Multiply by the number of bulbs: 20 bulbs save 1,116.9 kWh, or $189.87 a year ($15.82 a month).
- Work out the payback: 20 LEDs at $3.00 cost $60.00; $60.00 ÷ $15.82 a month = 3.8 months.
The same bulb costs $11.17 a year to run as an incandescent and $1.68 as an LED. Your price per kWh is on your bill: use the total including delivery charges if they are listed separately.
Saving per bulb by brightness
Compare lumens, not watts. Brightness in lumens, the incandescent bulb it replaces and the range of LED watts in the US Department of Energy FEMP table. Saving per bulb per year at the calculator defaults (3 hours a day, 17 cents per kWh).
| Brightness | Old incandescent | LED watts | Saving per bulb per year |
|---|---|---|---|
| 450 lumens | 40 W | 4.5 to 7.0 W | $6.14 to $6.61 |
| 800 lumens | 60 W | 5.9 to 10.5 W | $9.21 to $10.07 |
| 1,100 lumens | 75 W | 9.5 to 14.0 W | $11.36 to $12.19 |
| 1,600 lumens | 100 W | 10.5 to 18.0 W | $15.26 to $16.66 |
So an LED that replaces a 60 W bulb is usually 5.9 to 10.5 W. Check the Lighting Facts label on the box for the lumens and the watts, and read how many lumens you need per room to choose the brightness.
Saving by hours a day
One 60 W bulb replaced by a 9 W LED at 17¢ per kWh, with the LED at $3.00. The hours matter more than anything else, so change the bulbs that are on longest first.
| Hours on | Energy saved per year | Saving per year | Payback |
|---|---|---|---|
| 1 h a day | 18.6 kWh | $3.16 | 11.4 months |
| 2 h a day | 37.2 kWh | $6.33 | 5.7 months |
| 3 h a day | 55.8 kWh | $9.49 | 3.8 months |
| 4 h a day | 74.5 kWh | $12.66 | 2.8 months |
| 6 h a day | 111.7 kWh | $18.99 | 1.9 months |
| 8 h a day | 148.9 kWh | $25.32 | 1.4 months |
| 12 h a day | 223.4 kWh | $37.97 | 0.9 months |
Saving by electricity price
20 bulbs changed from 60 W to 9 W, on 3 hours a day, with LEDs at $3.00 each.
| Price | Saving per year | Saving per month | Payback |
|---|---|---|---|
| 12¢ per kWh | $134.03 | $11.17 | 5.4 months |
| 15¢ per kWh | $167.54 | $13.96 | 4.3 months |
| 17¢ per kWh | $189.87 | $15.82 | 3.8 months |
| 20¢ per kWh | $223.38 | $18.62 | 3.2 months |
| 25¢ per kWh | $279.23 | $23.27 | 2.6 months |
| 30¢ per kWh | $335.07 | $27.92 | 2.1 months |
What changes the saving
- The old bulb. Halogen and CFL bulbs use fewer watts than an incandescent bulb for the same light, so the saving from replacing them is smaller. Enter the watts printed on the bulb you have.
- The hours. A bulb on 1 hour a day saves $3.16 a year and pays back in 11.4 months; a hall light that is rarely on can wait until it burns out.
- Heat. Old bulbs turn most of their energy into heat. In winter a little of the saving comes back as extra heating, and in summer an air conditioner has less heat to remove.
- Life. ENERGY STAR LED bulbs are required to last 10,000 hours or more, which is about 9 years at 3 hours a day, so you also buy fewer bulbs.
For other appliances see how much it costs to run common appliances, or work out holiday lights with the cost to run Christmas lights. Planning new fixtures? Read how many recessed lights you need.
Frequently asked questions
How much does one LED bulb save per year?
About $9.49 a year for a 9 W LED that replaces a 60 W incandescent bulb, on 3 hours a day at 17¢ per kWh. That is 55.8 kWh a year. On 6 hours a day it is $18.99.
How much does a 60 watt bulb cost to run compared to an LED?
At 3 hours a day and 17¢ per kWh, a 60 W bulb costs $11.17 a year and a 9 W LED $1.68.
How long do LED bulbs take to pay for themselves?
At $3.00 a bulb, 3 hours a day and 17¢ per kWh, about 3.8 months. A bulb on only 1 hour a day takes 11.4 months.
What LED wattage replaces a 60 watt bulb?
An LED of 5.9 to 10.5 W gives the same 800 lumens as a 60 W incandescent bulb, according to the US Department of Energy's FEMP buying guide. Match the lumens on the box.
Is it worth replacing incandescent bulbs that still work?
For bulbs that are on a few hours a day, yes: the LED pays for itself within 3.8 months at 3 hours and then keeps saving for years. For lights that are rarely on, the payback is slow, so replace them when they fail.
More guides
Estimates only. Quantities depend on your materials, site and supplier. Confirm important numbers before you order, and follow local building codes for anything structural.
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