Check your electricity bill to find out what you're paying per kWh of electricity. Multiply the price (in $/kWh) with the big, bold number that indicates kWh per year on the EnerGuide label. The result will tell you how much it will cost every year to operate the appliance.
What Is a Kilowatt Hour?Your power utility measures electricity use in kilowatt hours, which is calculated by multiplying the wattage of a product by the number of hours it's in use. For example:
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A Higher Standard: ENERGY STAR®
Make the same calculations for other models that interest you and compare costs. Look for ENERGY STAR® qualified appliances, which are the most energy efficient in their class. The savings generated by these appliances can really add up because the savings compound every year for the life of the appliance.
You can also use the EnerGuide label's large kWh number to compare operating costs between the same type and size categories. You'll want to make sure you choose the most energy-efficient model available, and you'll also want to choose a size and type of appliance that corresponds to your needs.
The Appliance's "Second Price Tag"
Everyone is familiar with an appliance's first price tag: the sticker price, or the cost of buying an appliance. The second price tag is the appliance's long-term operating cost.
Some energy-efficient appliances cost slightly more than conventional equipment. But when you calculate the second price tag, these appliances save you money by dramatically reducing your energy costs over their lifetime. And because they use less energy, they help reduce greenhouse gas emissions that contribute to climate change.
Calculating the second price tag is easy. Simply multiply the appliance's estimated annual energy consumption (the large number on the EnerGuide label) by your local cost of electricity – which is on your utility bill – to estimate quickly how much it will cost to operate the appliance for one year:
×
Local electricity costs ($/kWh)
=
Annual electricity cost
Now multiply your annual electricity cost by the estimated life expectancy of your appliance
Annual electricity cost ($/year)
Appliance life (years)
=
Lifetime electricity cost
Let's refer to a sample EnerGuide label, to calculate differences in operating costs. Assume this label is affixed to clothes washer Model X. The label indicates that Model X uses 582 kWh per year. The most efficient standard model uses 136 kWh per year, and the least efficient washer uses significantly more energy – 1032 kWh per year.
Here are the second-price-tag calculations for all three washers, based on an average electricity cost of 10 cents per kWh:
| Most Efficient | Model X | Least Efficient |
|---|---|---|
|
Annual electricity cost calculation:
136kWh × 0.10 |
Annual electricity cost calculation:
582 kWh × 0.10 |
Annual electricity cost calculation:
1032 kWh × 0.10 |
The energy-wise and environmentally conscious choice may also be the most economical, as the most energy-efficient washer will cost you $624.40 less than Model X to operate over the life of the appliance. And remember, when the cost of electricity rises, so will your savings.
Use our Energy Cost Calculator for New Applances to make your calculations and compare models.