A refrigerator that uses half the electricity: is it worth replacing yours?

A refrigerator that uses half as much electricity can still cost more than keeping the one you own. When a breakdown means you already need to buy, a modest premium for efficiency may be easier to recover.

First decide which question you face: keep the working appliance, or choose between two replacements. In the fictional five-year examples below, replacing a working refrigerator costs $550 more, while choosing the efficient model when buying anyway costs $50 less. Start with what you will spend from today, including the purchase.

• Still working: keep it or replace it?
• After a breakdown: which new model?

Put each cost in the right place

• What you paid before: money already spent. Today's choice does not change it, so leave it out of this comparison.
• What you would pay now: the new appliance plus delivery, installation, and removal where applicable.
• What you pay while using it: electricity and other relevant costs through the same end date.

If your appliance still works, keeping it is an option. If it has broken, a repair quote can add a third option. The second example below starts after you have decided to replace rather than repair.

Still working: include the full replacement cost

These fictional refrigerator examples are for the United States, in US dollars (USD). The prices and energy use are chosen for illustration. Assume electricity costs $0.20/kWh, usage and the rate stay constant for five years, and either appliance remains usable throughout. The table includes the purchase price, delivery and installation, haul-away, and electricity. All amounts include any assumed applicable tax.

In this example, replacing it costs $550 more over five years. Electricity savings of $90 a year add up to $450, while buying and setting up the replacement and removing the old appliance cost $1,000. Leave out what you originally paid for the current appliance: that past expense does not change with today's decision.

Dividing the $1,000 upfront cost by $90 in annual savings gives a simple payback of about 11.11 years. That assumes the same savings continue, so the cost is not recovered within five years. Payback is a calculation, not a prediction of appliance life.

After a breakdown: compare the efficiency premium

If you have decided replacement is needed rather than repair, compare two new models. This is another fictional US/USD example with the same five-year period, constant $0.20/kWh rate and usage, and assumption that both appliances remain usable. It includes the same costs.

In this example, the more efficient model costs $50 less over five years. Its $200 premium is offset by $50 in annual electricity savings, or $250 over five years. Simple payback is 4.00 years. An additional fee could reverse that small advantage.

The amount to recover is the $200 difference, rather than the efficient model's whole $1,000 price: you would also pay to buy the standard model. When calculating total cost, include each model's own purchase price.

Compare everyday usefulness alongside cost

Start with models that meet your capacity and feature needs. Then compare details such as shelf layout, door clearance, and how easy the interior is to clean. Putting those benefits beside the cost difference helps you decide what is worth paying for.

The basic calculation is annual kWh multiplied by your electricity price per kWh. For each option, add the upfront costs to electricity costs over the same period. On a US refrigerator, the yellow EnergyGuide label helps you compare energy use with similar appliances. Its dollar estimate uses typical usage and a national average energy price; your cost depends on how you use the appliance and your local rate [1]. Use your utility's applicable usage rate, including time-of-use differences where relevant, rather than assuming the label's dollar estimate is your bill. A fixed utility charge that stays the same whichever appliance you choose does not contribute to the savings.

What the calculation leaves out

The tables exclude consumables, repairs, additional delivery or building work, water and gas, financing costs, rebates or other subsidies, trade-in proceeds, and resale value at the end of the period. Add or subtract relevant amounts for each option. An excluded cost is not necessarily zero or the same for both. Inflation and the time value of money are not modeled. Sales tax varies by location; the fictional amounts here already include any assumed applicable tax.

If an appliance fails during the period, include the repair or replacement cost and revised electricity use through the same end date. Add repair as another option if it is practical. Without information such as remaining life, these examples cannot establish which option will actually cost you less.

Simple payback is the extra upfront cost divided by annual savings. With a positive upfront premium, zero savings cannot repay it, and negative savings mean electricity costs rise, so there is no positive payback period. If the upfront difference is zero, there is no premium to recover; still compare the costs that follow.

Source and assumptions

Official source rechecked October 11, 2026 (UTC). All numerical inputs were chosen for these US examples; they are not current product prices, a national electricity-rate estimate, or a currency conversion of the Japanese edition. Dollar amounts are shown in whole dollars; payback is rounded to two decimal places.

1. Federal Trade Commission: How To Use the EnergyGuide Label To Shop for Home Appliances. Explains comparisons between similar appliances and why the label's estimated operating cost can differ from your own.

Your next step: Choose two options and a comparison period. Gather the purchase price including sales tax, delivery and installation, haul-away, annual kWh, and your electricity rate. Compare totals for models that meet your needs. If the difference is small, check whether one additional fee would change the result.