How to Lower Your Energy Bill: No-Cost, Low-Cost and Big Upgrades
Ways to lower your energy bill, ranked from free habit changes to low-cost fixes and big upgrades, with official savings figures and where to find help.
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Find out how much you save each year by swapping old bulbs for LEDs, and how many months it takes for the new bulbs to pay for themselves.
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Swapping 15 bulbs saves about $151 a year and pays for the LEDs in about 4 months.
Estimate only. Uses the assumptions explained below.
| Yearly lighting cost | |
|---|---|
| Old bulbs | $177 |
| LEDs | $27 |
| Year | Running total |
|---|---|
| 0 | −$45 |
| 1 | $106 |
| 2 | $257 |
| 3 | $407 |
| 4 | $558 |
| 5 | $709 |
| 6 | $860 |
| 7 | $1,010 |
| 8 | $1,161 |
| 9 | $1,312 |
| 10 | $1,463 |
| Year | Energy savings | Net cash flow | Running total |
|---|---|---|---|
| 0 (Up-front cost) | — | −$45 | −$45 |
| 1 | $151 | $151 | $106 |
| 2 | $151 | $151 | $257 |
| 3 | $151 | $151 | $407 |
| 4 | $151 | $151 | $558 |
| 5 | $151 | $151 | $709 |
| 6 | $151 | $151 | $860 |
| 7 | $151 | $151 | $1,010 |
| 8 | $151 | $151 | $1,161 |
| 9 | $151 | $151 | $1,312 |
| 10 | $151 | $151 | $1,463 |
| Total | $1,508 | $1,508 | $1,463 |
Save up to 3 scenarios (for example, with and without a rebate) and compare them side by side.
LED bulbs make the same light as old incandescent bulbs with a fraction of the electricity. The savings per bulb are small, but across a whole house, and over years, they are one of the quickest paybacks in home energy. This calculator shows how quickly yours pay off.
The calculator finds the watts you save per bulb, multiplies by how long the lights are on, and turns that into kWh and dollars.
Watts saved = old bulb watts − LED watts
kWh saved per year = bulbs × watts saved × hours per day × 365 ÷ 1,000
Savings per year = kWh saved × electricity price ($/kWh)
Cost of new bulbs = bulbs × price per LED
Payback (months) = cost of new bulbs ÷ savings per year × 12
The default electricity price is $0.18 per kWh, from the US average residential price of 18.31 cents per kWh in July 2026 (EIA, Table 5.6.A). The default LED is 9 watts, a common draw for a bulb that matches a 60-watt incandescent (about 800 lumens, per University of Maryland Extension). The $3 bulb price is a placeholder; use what you actually pay.
The calculator assumes each light is on the same number of hours every day of the year, and that the LED gives similar light. It does not count the cost of old bulbs you would otherwise buy.
The default inputs: 15 bulbs, old bulbs at 60 watts, LEDs at 9 watts, on 3 hours a day, at $0.18 per kWh, with LEDs at $3 each.
Say you have 8 old 100-watt bulbs in a kitchen and family room that are on 5 hours a day. You replace them with 15-watt LEDs at $5 each, and pay $0.16 per kWh. The calculator shows 1,241 kWh saved, about $199 a year, $40 for the bulbs and a payback of about 2 months.
Compare that with a closet or guest room: 15 bulbs on only half an hour a day, with the other defaults unchanged, save just 140 kWh and about $25 a year, with a payback of about 21 months. Same bulbs, very different value.
The yearly savings figure repeats every year the LED keeps working. University of Maryland Extension says LEDs typically last 15,000 to 25,000 hours, so a bulb used 3 hours a day can keep saving for well over a decade.
This table uses the calculator’s defaults (15 bulbs, 60 W to 9 W, $0.18 per kWh, $3 per LED) and changes only the hours per day.
| Hours on per day | kWh saved per year | Savings per year | Payback |
|---|---|---|---|
| 0.5 | 140 kWh | about $25 | about 21 months |
| 1 | 279 kWh | about $50 | about 11 months |
| 3 (default) | 838 kWh | about $151 | about 4 months |
| 6 | 1,675 kWh | about $302 | about 2 months |
If your old bulbs are not 60-watt incandescents, enter the wattage printed on the bulb. For example, swapping 15 bulbs of 43 watts for 9-watt LEDs, with the other defaults, saves about 558 kWh and $101 a year, with a payback of about 5 months.
Federal lighting rules. The Department of Energy requires general service bulbs to meet a minimum of 45 lumens per watt and has said it will pursue penalties for bulbs that do not (DOE guidance, October 2022). University of Maryland Extension notes that this effectively ended sales of most incandescent and halogen bulbs, with enforcement beginning in 2023. So this calculator is mostly about the old bulbs still in your sockets.
ENERGY STAR labels on bulbs. University of Maryland Extension reports that EPA ended ENERGY STAR certification for most lamps and fixtures at the end of 2024, because LEDs had become the norm. Many bulbs will no longer carry the label. Use the FTC Lighting Facts label on the box to compare lumens, watts, life and yearly cost.
Your electricity rate. At the July 2026 averages from EIA, the default 838 kWh saved is worth much more in a high-price state like California (33.61 cents per kWh) than in a lower-price state like Louisiana (12.72 cents). Enter your own rate.
Utility programs. Some utilities still offer discounted bulbs or free kits. If energy costs are a strain, our guide to help paying energy bills lists programs that can help. Search DSIRE or your utility’s site. For a ranked list of other low-cost fixes, see our guide on how to lower your energy bill.
The calculator assumes constant daily use and a flat electricity rate. It does not include the small effect of bulb heat on heating and cooling, the cost of replacement bulbs you avoid buying, or differences in light quality between bulbs. Real LED wattage varies by product.
It gives an educational estimate, not a quote or advice. If you are doing a broader check of where your home’s electricity goes, a home energy audit and the phantom load calculator help find the rest.
It depends mostly on how many hours the lights are on. With the default inputs, replacing 15 bulbs of 60 watts with 9-watt LEDs used 3 hours a day saves about 838 kWh and $151 a year at 18 cents per kWh. The same 15 bulbs used only 1 hour a day save about $50 a year. Lights that are on many hours, such as kitchens, living rooms and porch lights, save the most.
Shop by brightness in lumens, not by watts. University of Maryland Extension notes that about 800 lumens matches an old 60-watt bulb, 1,100 lumens matches a 75-watt bulb and 1,600 lumens matches a 100-watt bulb. An 800-lumen LED typically uses about 9 to 12 watts. The FTC Lighting Facts label on the box lists lumens, watts, life and estimated yearly cost, so you can compare bulbs directly.
Mostly no, at least not for everyday lamps. A Department of Energy rule requires everyday general service bulbs to reach at least 45 lumens per watt, and DOE has said it will pursue penalties for bulbs that fall short. That level effectively rules out standard incandescent and most halogen bulbs. Many homes still have old bulbs in sockets, so the savings from replacing them are real until the last one is swapped.
University of Maryland Extension says LEDs typically last 15,000 to 25,000 hours. ENERGY STAR explains that LEDs do not usually burn out suddenly; their rated life is the point where light output drops by 30 percent. At 3 hours a day, 15,000 hours is more than 13 years. Heat shortens LED life, so use bulbs rated for enclosed fixtures where needed.
The savings are smaller because a CFL already uses far less power than an incandescent bulb. Enter the CFL's actual wattage as the old bulb watts to see the result. Many people replace CFLs as they fail. CFLs contain a small amount of mercury, so recycle them where your community allows rather than throwing them in the trash.
A little. Old incandescent bulbs turn most of their power into heat. In summer, that heat adds to air conditioning load, so LEDs help slightly. In winter, your heating system makes up a small part of the heat the old bulbs used to give off. This calculator counts only the lighting electricity, which is the main effect for most homes.
Possibly, through your utility. Some utilities offer discounted LEDs or free energy-saving kits, while others have dropped lighting offers now that LEDs are the standard bulb. There is no federal tax credit for light bulbs. Check your utility's website or the DSIRE database at dsireusa.org, run by NC State University, for programs in your area. Even without a rebate, the default example pays back in about 4 months.
This calculator gives educational estimates, not quotes, tax advice or an eligibility decision. Results depend on the inputs and assumptions shown above. How we research
Ways to lower your energy bill, ranked from free habit changes to low-cost fixes and big upgrades, with official savings figures and where to find help.
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