Estimate annual electricity cost for a cooling system based on capacity, SEER, run hours, and utility rate.
About this calculatorThis calculator estimates the annual electricity cost for operating a cooling system based on capacity, run hours, electrical rate, and system SEER. Use it during energy analysis or equipment ROI comparisons to understand the operating cost difference between efficiency levels. The result helps justify higher-efficiency equipment investments.
Use whenYou need to estimate the annual electricity cost for operating a cooling system.
CapacityCooling capacity in BTU/HrSEERSeasonal Energy Efficiency RatioHoursAnnual operating hoursRateElectricity rate in $/kWh
Cooling load in BTU per hour
Total run time in hours
Average electricity cost per kilowatt-hour
Seasonal Energy Efficiency Ratio of equipment
Cost ($)—
How is cooling energy cost calculated?
Annual cooling energy cost is calculated by dividing the cooling capacity by the system's SEER to determine electrical demand, then multiplying by operating hours and the electricity rate. The formula is: Cost = (BTU/hr × Hours × Rate) / (SEER × 1,000), where the division by 1,000 converts watts to kilowatts. This calculation enables side-by-side comparisons between equipment at different efficiency levels. For example, upgrading from SEER 14 to SEER 20 on a 5-ton (60,000 BTU/hr) system operating 1,500 hours per year at $0.12/kWh reduces annual cost from approximately $771 to $540—a savings of $231 per year. These comparisons help building owners evaluate simple payback on higher-efficiency equipment. Actual costs vary with climate, building load profile, and utility rate structure.
