SEER Upgrade Savings Calculator

The savings estimate compares the yearly electric cost of the two units. Upgrading a 3-ton system from SEER 10 to 16 saves about $202 a year, with the new one costing about $338 to operate. Compare that with the installed cost to find the payback, which is often long unless the old unit is failing.

Rebates and tax credits can shorten it. An upgrade also improves comfort, and the biggest savings come from replacing very old, low-SEER equipment.

SEER Upgrade Savings Calculator: inputs

Calculated result
Estimated annual savings$203
New system annual operating cost$338

Electricity rate and estimated annual savings

SEER Upgrade Savings Calculator: Electricity rate and Estimated annual savings5 calculations vary the “Electricity rate” input while holding the other entered inputs constant.$0.12$162$0.14$189$0.15$203$0.17$230$0.18$243

Enter the cooling capacity in BTU per hour, the annual full-load operating hours for your climate, the SEER ratings of the old and new systems and your electricity rate per kilowatt-hour. Use equivalent full-load cooling hours derived from the building’s cooling load and equipment capacity; clock hours with the fan running are not equivalent full-load hours. SEER, the seasonal energy efficiency ratio, is the cooling delivered per watt-hour of electricity.

Find the old rating on the nameplate, and note that newer ratings use SEER2, a more realistic test standard.

Use efficiency ratings on the same test basis. SEER and SEER2 are different procedures and the calculator does not supply a universal conversion between them. Equivalent full-load hours are an assumption, not raw thermostat-on hours.

Actual loads, ducts, controls and installation affect costs. This model excludes installed price, heating energy and any current incentive eligibility.

Estimated annual savings from cooling capacity

Cooling capacity36,000
Annual full-load hours1,000
Old system SEER10
New system SEER16
Electricity rate$0.15
Estimated annual savings$203
New system annual operating cost$338

Common error: Counting on the full saving from a rating alone. Duct leaks, poor installation and an incorrectly sized unit can waste much of the gain.

SEER Upgrade Savings: formula

Annual kWh = capacity × full-load hours ÷ (SEER × 1000); cost = kWh × electricity rate

ASHRAE Handbook; Fundamentals · DOE: Central AC and heat-pump test procedure

SEER Upgrade Savings: changing Electricity rate

Estimated annual savings: assumed Electricity rate scenarios.
Electricity rateEstimated annual savingsNew system annual operating cost
$0.12$162$270
$0.14$189$315
$0.15 (example)$203$338
$0.17$230$383
$0.18$243$405

SEER Upgrade Savings: compare input ranges

SEER Upgrade Savings Calculator: Estimated annual savings with each input moved on its own, every other input held at the worked-example value.
InputTested fromToEstimated annual savings: low inputEstimated annual savings: high inputSwing
Old system SEER911$263$153$109 (54%)
New system SEER1418$154$240$86 (42%)
Cooling capacity32,40039,600$182$223$41 (20%)
Annual full-load hours9001,100$182$223$41 (20%)
Electricity rate$0.14$0.17$189$230$41 (20%)

SEER Upgrade Savings: individual input comparisons

SEER Upgrade Savings Calculator: change one input at a time; other values remain at the stated example.
InputValueEstimated annual savingsNew system annual operating cost
Cooling capacity28,800$162$270
32,400$182$304
36,000$203$338
39,600$223$371
43,200$243$405
Annual full-load hours800$162$270
900$182$304
1,000$203$338
1,100$223$371
1,200$243$405
Old system SEER8$338$338
9$263$338
10$203$338
11$153$338
12$113$338
New system SEER13$125$415
14$154$386
16$203$338
18$240$300
19$256$284
Electricity rate$0.12$162$270
$0.14$189$315
$0.15$203$338
$0.17$230$383
$0.18$243$405

Estimated annual savings: Electricity rate against Cooling capacity

SEER Upgrade Savings: Estimated annual savings at combined Electricity rate and Cooling capacity settings.
Electricity rate / Cooling capacity28,80036,00043,200
$0.12$130$162$194
$0.14$151$189$227
$0.15$162$203$243
$0.17$184$230$275
$0.18$194$243$292

SEER Upgrade Savings: values and definitions

Worked-example inputs and the results they produce for the SEER Upgrade Savings Calculator.
Quantity and definitionValue used
Cooling capacity — Rated cooling capacity, in BTU per hour.36,000
Annual full-load hours — Estimated equivalent full-load cooling hours per year.1,000
Old system SEER — SEER rating of the existing system.10
New system SEER — SEER rating of the replacement system.16
Electricity rate — Cost per kilowatt-hour of electricity.$0.15
Estimated annual savings$203
New system annual operating cost$338

The SEER rating measures cooling output per unit of electricity, so a higher rating uses less power for the same cooling. A 3-ton system running 1,000 full-load hours a year uses about 3,600 kilowatt-hours at SEER 10 and about 2,250 at SEER 16. At 15 cents a unit, that is a saving of about $203 a year, with the new system costing about $338 a year to run.

The saving rises with hotter climates, longer cooling seasons and higher electricity prices.

Use your own full-load hours and your electricity rate, and compare the yearly saving with the installed cost. The payback is often longer than the saving suggests.

Size the system on the HVAC tonnage calculator, check ducts on the duct sizing and static pressure pages and see local climate on the degree days calculator. The energy and power converters change units, and the loan calculators compare financing costs.

What produces $202.50 annual savings?

At 36,000 Btu/h and 1,000 equivalent full-load hours, SEER 10 uses 3,600 kWh and SEER 16 uses 2,250 kWh. At $0.15/kWh, the difference is $202.50.

Can an old SEER number be compared directly with a SEER2 number?

They use different testing procedures. Obtain ratings on a comparable basis or an appropriate model-specific comparison before treating the ratio as energy savings.

Does the result establish an economical replacement?

No. The calculation excludes installed cost, maintenance, remaining service life, financing and the actual future electricity tariff.