ROI & PAYBACK CALCULATOR

Investment Return Analysis

Calculate exact payback period and ROI for any energy upgrade with Indian electricity rates.

Net Investment₹3,000after subsidy
Annual Savings₹1,478estimated
Payback Period2.0 yrexcellent ROI
ROI Annual49.3%beats FD/MF avg
Cumulative Savings vs InvestmentDynamic 12-year projection
Calculated after input

How it compares to other investments

This is a simple comparison of annual return. Energy savings are not a financial product, but payback can beat many basic returns when usage is high.

How do you calculate the payback period of an energy-saving upgrade?

Short answer: Payback period (months) = upgrade cost ÷ monthly bill saving. Monthly saving = (old watts − new watts) × hours per day × 30 ÷ 1,000 × tariff. Example: replacing a 75 W fan with a 30 W BLDC fan used 12 hours a day saves 16.2 kWh a month; at 8 per kWh that is about 130 a month, so a 3,000 fan pays back in about 23 months.

Typical upgrade paybacks (India, ₹8/kWh)
UpgradeWatts savedTypical payback
Ceiling fan → BLDC fan (12 h/day)~45 W1.5–2.5 years
60 W bulb → 9 W LED (6 h/day)~51 W2–4 months
Old 1.5 ton AC → 5-star inverter (8 h/day)~400–600 W avg3–6 years
Electric geyser → solar water heater~1.5–2 kWh/day3–5 years

Tip: Rule of thumb: upgrades with a payback under 3 years are usually worth doing; above 5 years only if the old appliance also needs replacing.

Using this calculator outside India? Outside India? Pick your currency at the top of the page and enter the per-kWh rate printed on your bill. Typical residential averages: USA 18.3¢/kWh (EIA, July 2026; California 33.6¢, Texas 15.9¢), UK about £0.25/kWh, Germany about €0.38/kWh, UAE about AED 0.23–0.38/kWh, Canada about C$0.13–0.20/kWh and Australia about A$0.30–0.35/kWh. The kWh result is the same in every country; only the cost changes.

Frequently asked questions

What is a good payback period for energy-saving upgrades?
Under 2 years is excellent, 2–4 years is good, and above 5 years is only worthwhile when the old appliance is near the end of its life anyway.