Replace an old refrigerator: does the saving pay off?
A smaller electricity bill still has to cover the purchase.
A more efficient refrigerator can reduce running costs. Whether replacing one saves money also depends on the purchase price and how long you use it. Start the comparison today: keeping the current appliance versus buying another. Its original purchase price has already been paid.
Collect comparable inputs
The FTC explains that EnergyGuide gives energy-use information for comparing similar appliances. Its estimated dollar cost uses assumptions about use and energy prices, so it is not a prediction of your bill. Use the annual kWh figure with your own electricity rate. [1]
- A: enter zero upfront if keeping your appliance requires no new expense.
- B: include the complete purchase price, delivery and required one-off costs.
- Use annual kWh for each alternative and your variable rate in cents per kWh.
- Choose a period that makes sense for both appliances; it is not a lifespan guarantee.
Worked example: keep or replace
Invented inputs: A uses 400 kWh per year. B costs $600 and uses 150 kWh. Electricity costs 20 cents per kWh. These are not measured appliance averages or current offers. The annual electricity saving is $50. Recovering the extra purchase price takes 144 full months in this simplified model. Amounts outside the calculator are rounded.
| Period | A: keep | B: replace |
|---|---|---|
| 3 years | $240 | $690 |
| 5 years | $400 | $750 |
| 10 years | $800 | $900 |
| 15 years | $1,200 | $1,050 |
What the model leaves out
Repair may offer another option. Get a quote and consider the appliance’s condition. You can include an upcoming one-off repair in A’s upfront cost. Recurring repairs, financing and resale values are outside this model. A lower long-term total does not mean you can afford the purchase today.
This is a money comparison, not an environmental assessment. It does not measure production, transport or disposal. Do not count on the calculated electricity saving if you keep the old refrigerator running as an extra appliance.
For a measurement, start with appliance electricity use. Comparing two new models? Read when an efficiency premium pays off. Replace the example inputs in the appliance cost calculator.
Cost difference over 10 years
$100.00Appliance A costs less over the selected period.
| Cost | A | B |
|---|---|---|
| Upfront cost from today | $0.00 | $600.00 |
| Electricity per year | $80.00 | $30.00 |
| Electricity over 10 years | $800.00 | $300.00 |
| Total cost | $800.00 | $900.00 |
- Annual electricity saving with B
- $50.00
- B’s premium recovered after
- 144 months
Electricity savings do not recover the premium within your selected period.
Assumptions behind this calculation
- Unchanged electricity rate and annual use throughout the selected period. Annual costs are rounded to cents. Excludes repairs, financing, price changes, resale value and environmental impacts. Payback spreads annual savings evenly and rounds up to whole months. An assumed period is not a lifespan guarantee.
The full calculator with an example, the method and sources: Appliance Cost Calculator: Buy and Run
What you can do about it
-
Check inputs
Use your electricity consumption and rate.
-
Compare alternatives
Include purchase and running costs over the same period.
-
Check your budget
Plan with money that is actually available.
Frequently asked
Do I count the original purchase price?
Not when deciding today between keeping and replacing an appliance. Count costs from today; the original purchase has already been paid.
Does a new refrigerator always save money?
No. Electricity savings must cover its upfront cost within a useful period. Capacity, repairs and your budget also matter.
Is this an environmental assessment?
No. Manufacturing, transport, refrigerants and disposal are not part of this cost calculation.
Sources
- How To Use the EnergyGuide Label To Shop for Home Appliances, Federal Trade Commission, retrieved October 3, 2026.
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