How it's worked out
Cooling load per year (BTU) = tons × 12,000 BTU per hour × full-load cooling hours.
Cooling kWh per year = cooling load ÷ (rating × 1,000). A SEER or SEER2 rating is BTU of cooling per watt-hour, so dividing by the rating gives watt-hours, and dividing by 1,000 gives kWh.
Cost per year = kWh × your price per kWh. Savings per year = current cost − new cost. Savings over the years = savings per year × years, at today's power price (no rate increases, no discounting). Simple payback = price difference ÷ savings per year.
Worked example
With the example numbers above (all placeholders, not typical hours, prices, or ratings):
- Cooling load: 3 tons × 12,000 × 1,500 hours = 54,000,000 BTU a year.
- Current 10 SEER unit: 54,000,000 ÷ 10,000 = 5,400 kWh × $0.15 = $810 a year.
- New 16 SEER2 unit: 54,000,000 ÷ 16,000 = 3,375 kWh × $0.15 = about $506 a year.
- Savings: 2,025 kWh, about $304 a year, or about $4,556 over 15 years.
- Payback: $2,500 ÷ $303.75 = about 8.2 years.
- Table: 15 SEER2 saves about $270 a year, 17 SEER2 about $334, and 19 SEER2 about $384.
SEER vs SEER2: why we don't convert
SEER2 ratings come from a newer Department of Energy test procedure than the older SEER ratings, so the same equipment can carry different numbers under each. You'll see rules of thumb for converting one to the other online, but we couldn't confirm a single official conversion factor from DOE for every kind of system, so this calculator doesn't apply one. If the old unit is rated in SEER, the result mixes the two tests and the page flags it. For the most honest comparison, compare SEER2 with SEER2 (the AHRI certificate for the matched system lists the ratings).
What this leaves out
This is an estimate, not a promise. Real savings depend on the home's actual cooling load, how the thermostat is set, how many hours the system really runs, duct leakage and duct losses, refrigerant charge and airflow on install day, and how the old unit has aged. Say so when you show it.
- Heating. This covers cooling only. Heat pump heating savings (HSPF2) are not included.
- Sizing. Old and new use the same tonnage here. If the new system is sized from a load calculation and comes out smaller or larger, the numbers change.
- Power price changes. The lifetime figure uses today's price per kWh.
- Rebates and tax credits. Anything that lowers the price difference shortens the payback. Check current programs yourself; we don't quote them here.
We don't quote "typical" cooling hours or electricity prices, because they vary by area and change over time. Use the homeowner's own bill and hours that fit your climate.
Related tools
Quoting three options? Put them on one printable page with the HVAC good / better / best proposal builder, and show the monthly payment for each with the HVAC financing payment calculator. Setting the prices for each tier? The HVAC install job pricing calculator builds a replacement price from equipment, labor, and overhead.