How to Calculate LED Savings
The calculator compares the electricity used by your old incandescent bulbs with the electricity used by the LED replacements. It keeps kWh visible, but turns the result into the money questions most people need: monthly savings, annual savings, payback, 10-year savings, and lifetime net savings.
- Choose a brightness target in lumens, then pick the incandescent and LED wattages that match your bulbs.
- Enter how many bulbs are being replaced and how long they run.
- Use a tariff preset or enter your own electricity price in currency units per kWh.
- Add bulb prices and lifetimes if you want payback and lifetime net savings.
Variables
Winc is the old incandescent watts, WLED is the replacement LED watts, n is bulb count, h is hours per day, d is days per year, and p is electricity price per kWh.
Core formulas
kWh before = Winc x h x d x n / 1000kWh after = WLED x h x d x n / 1000kWh saved = kWh before - kWh afterAnnual savings = kWh saved x pMonthly savings = annual savings / 12
Payback and lifetime formulas
Percent reduction = kWh saved / kWh before x 100LED purchase cost = LED bulb price x nPayback years = LED purchase cost / net annual savingsLifetime net = lifetime energy savings + avoided incandescent bulb cost - LED purchase cost
Worked example: one 60W incandescent replaced by a 9W LED for 3 hours per day saves
(60 - 9) x 3 x 365 / 1000 = 55.8 kWh/year. At 26.11 p/kWh, that is about
GBP 14.58 per year, or GBP 1.22 per month, before bulb replacement savings.
Assumptions and sources
Last reviewed: 30 June 2026. Defaults are estimates; your bill, taxes, fixture heat, and product quality can change the result.
- U.S. Department of Energy LED lighting guidance: residential LEDs use much less energy than incandescent lighting and quality LEDs last much longer.
- U.S. Department of Energy lumens guidance: common replacements are about 450, 800, 1100, and 1600 lumens for 40W, 60W, 75W, and 100W incandescent bulbs.
- U.S. EIA Electric Power Monthly: U.S. residential average electricity price, April 2026.
- Ofgem price cap unit rates: Great Britain direct debit electricity unit rate for 1 July to 30 September 2026.
- Eurostat electricity price statistics: EU household electricity average for the second half of 2025.
