Thoughtful purchases

How to compare two appliance energy costs

By NJN · Published October 11, 2026 · Practical editorial guide

When two appliances meet your needs, their electricity use can help you compare the cost of ownership. Start with the exact models and equivalent capacity. An energy estimate is useful only when you understand what it measures and which assumptions it uses.

Find the model's EnergyGuide information

The yellow U.S. EnergyGuide label for covered appliances provides comparison information such as estimated annual energy use or operating cost. The Federal Trade Commission explains that estimated costs are based on standardized assumptions; your use and local price of energy may differ.

Find the label on the appliance or the manufacturer's listing. Check that it belongs to the exact model, not a similar model pictured on the same page. Compare appliances that perform the same job at a suitable capacity for your household.

Use annual kWh when it is available

For an electricity comparison, put both models' annual kilowatt-hours in the same column. Multiplying annual kWh by an assumed price per kWh gives an illustrative energy cost. It does not include every fixed charge on a utility bill.

Suppose Model A is listed at 400 kWh per year and Model B at 500 kWh per year. At an illustrative electricity rate of $0.20 per kWh, the comparison is:

These are invented comparison numbers, not product ratings or a typical U.S. rate. Under these assumptions, the difference is $20 per year. Use your utility's applicable rate and the models' documented figures for your own comparison.

Compare the purchase-price difference too

If Model A costs $100 more to buy, dividing $100 by the example's $20 annual difference gives five years to recover the extra purchase cost through that assumed energy difference. This simple calculation ignores price changes, repairs, differences in use, and the appliance's lifetime. Treat it as one decision input rather than a forecast.

Do not substitute rated watts blindly

Rated power multiplied by time is a rough calculation for equipment drawing that power throughout the period. Appliances may cycle or use different modes, so a nameplate wattage alone can misrepresent annual electricity use. Prefer the documented, comparable annual figure when available.

Finally, check fit, ventilation clearances, required installation, warranty, and maintenance costs. A more efficient model that needs an unexpected installation change may not be the most suitable purchase.

Source: FTC: How to use the EnergyGuide label. This guide is a household comparison method, not a promise of savings.