Energy Savings Definition Our energy savings calculator will allow you to see just how much money you’d really be saving if you took advantage of cost-cutting energy measures. This calculator will work regardless of where your get your energy savings percentage from, whether it’s an estimate from a company or one you’ve calculated yourself. The math behind this calculator is relatively simple. You need just two things to be able to see your monthly, yearly and five-year energy savings estimates:
The total cost of your monthly energy bill
The percent you plan to save on your bill
The calculator then takes that percentage, converts it to a decimal value and multiplies it by your energy bill to arrive at your one-month energy savings amount. Your monthly energy savings is then multiplied by 12 and 5 to get your yearly and 5-year energy savings estimates respectively.
Uses of the Energy Savings Calculator The math behind our calculator isn’t the most complicated, but this calculator provides you with an easy way to see not just one, but three different estimates at once. This can be vital to comparing one company that gives you a percentage savings estimate and another that gives you a raw value in terms of a year. That means if one company gives you an estimate of 40% savings on your energy bill by having them install their system in your residence and another gives you an estimate of $1,500.00 a year, you can quickly decide which benefits you more. If you need to compare multiple savings estimates, you can calculate one and then click the back button on your results. Instead of entering all of your data again, you need only to change the savings percentage and click ‘Calculate’ once more. You can use this for more than just comparing company estimates. If you plan to install your own energy-saving measures and have calculated how much they should save, such as replacing standard incandescent light bulbs with high-efficiency compact fluorescent light bulbs, you can see almost immediately what the impact would be on your energy bill. One thing to be aware of is that this gives an estimate based on just one month’s energy bill. If your electricity cost varies, as it often does for most people from month to month, then it may not provide a perfectly accurate picture. To get around this, take the total you spent on your energy bill for the previous year’s period and divide it by 12, then take that value and use it as your monthly energy cost.
How to Calculate Energy Savings Let's be honest - sometimes the best energy savings calculator is the one that is easy to use and doesn't require us to even know what the energy savings formula is in the first place! But if you want to know the exact formula for calculating energy savings then please check out the "Formula" box above.