See how long a more efficient replacement takes to pay back through lower energy bills and avoided repairs.
A failed water heater is one of the most common emergency calls, and the decision between a like-for-like swap and a more efficient model is often made in a hurry. This calculator shows how long the extra upfront cost of a better unit takes to pay for itself.
How it works: net cost = installed cost minus rebates. Each year you save the amount you enter, growing by the yearly increase if you expect energy prices to rise. Payback is the point where the running total of savings equals the net cost. Net savings over the period is total savings minus net cost.
Worked example (illustrative numbers): a $2,400 installed unit with a $300 rebate has a net cost of $2,100. At $220 of yearly savings growing 2 percent a year, savings add up to roughly $2,100 in a little under ten years. If you keep the unit for 12 years, the net savings figure shows what remains after payback.
The savings figure is your own estimate. Compare it with the cost of a like-for-like replacement by entering only the extra cost of the efficient model as the installed cost. Check the federal ENERGY STAR and Department of Energy sites and your utility for current rebates, because incentives change often. The calculator ignores financing costs, installation surprises such as venting or code upgrades, and the value of your time.
Costs and Comparison
How to decide between repairing and replacing a failed water heater, what drives the installed price, and how to avoid rushed decisions on an emergency call.
