Formula
kWh/yr = (tons × 12000 × hrs) / SEER / 1000 · $/yr = kWh × rateSEER2 (2023+) runs ~4.5% lower than the old SEER number for the same equipment. Use the rating from the AHRI directory.
Current annual cooling cost
$494
3086 kWh/yr
Compare upgrade
Annual savings
$110
New cost: $384 / yr (2400 kWh)
Simple payback
59.2yrs
Ignores rate inflation, rebates, and financing
Typical cooling hours/yr
- Northern US: 600–900
- Mid-Atlantic / Midwest: 1000–1400
- Southeast / Texas: 1800–2400
- South Florida / Phoenix: 2500–3500
How to use this calculator
Estimate annual cooling cost and the payback of upgrading to a higher SEER2 system.
- Enter system capacity in tons and existing SEER or SEER2 rating.
- Enter annual cooling hours for your climate.
- Enter the electricity rate in dollars per kWh.
- Compare annual cost against a higher-rated system and read simple payback.
Frequently asked questions
- How do I calculate annual cooling cost?
- Annual kWh = (capacity in BTU/h × cooling hours) ÷ (SEER × 1,000). Multiply by the electricity rate for annual dollars.
- What is the difference between SEER and SEER2?
- SEER2 uses higher external static pressure in testing, so SEER2 numbers run roughly 4.5% lower than the old SEER rating for the same equipment.
- Is upgrading from 14 to 18 SEER worth it?
- It cuts cooling energy by about 22%, so payback depends on run hours and rates — quick in hot climates with expensive power, slow in mild ones.