How Much do LED Lights Save? – Calculator

Last Updated on August 6, 2023 by The Tutor

How Much Do LED Lights Save?

how much do led lights save

LED, or light-emitting diode, is a semiconductor device that illuminates and produces visible light when an electric current passes through it. A diode is composed of two electrodes — anode and cathode — that allow electricity to flow in one direction. LED lights produce light more efficiently compared to standard incandescent light bulbs or compact fluorescent lamp (CFLs), making them less costly to use.

How Do LED Lights Work?

LED lights are directional light sources and can only emit light in a specific direction. For the current to flow, a light-emitting diode should have a voltage source connected with the positive side on the anode and the negative side on the cathode. This connection will produce light, known as the forward bias condition. Forward bias allows the electrical current to flow through the LED, emitting visible light.

If the positive end of the voltage source is connected to the cathode and the negative end is connected to the anode, the current would not flow. This condition is known as reverse bias, which prevents the electricity from flowing through the LED until it reaches a certain point where it is no longer able to keep the current flow, known as the peak inverse voltage. When this happens, the device will be damaged.

Because LED lights emit light in one direction, they are able to use light and energy more efficiently compared to other light products, such as incandescent lights and compact fluorescent lamps (CFL).

See Our List of Recommended LED Light Bulbs

Why Do LED Lights Cost Less to Operate? how much do LED lights save

Generally, LED lights cost less to operate because diode lights use energy more efficiently. LED lights don’t get hot like other traditional light bulbs. They are technically designed so that they prevent the flow of electricity when it’s not connected to the right ends of the voltage source, which means they don’t produce unnecessary heat that would only waste energy.

LED lights have a direct lighting capability, which means a lesser number of LED lights can provide the same amount of lighting as several traditional light bulbs. Meanwhile, while traditional light bulbs need a high amount of energy to provide a certain level of brightness, LED lights use lesser energy to provide the same level of brightness or lumens.

Read [Pros and Cons of LED Lights]

How Much Energy Do LED Lights Save?

The average LED light bulb that is used 5 hours per day will save $10-$20 dollars per year in energy costs versus an incandescent bulb.

LED lights are highly energy-efficient compared to other types of lighting products. Residential LED lighting products use at least 75% less energy than incandescent or CFL lighting products. In fact, most LED light bulbs only use between two to 17 watts of electricity, which is around 60% to 90% lesser than incandescent or CFL lighting.

When measuring how much energy you can save using LED lights, you also need to consider the lumens, which is the amount of light or the level of brightness lighting products can provide. For example, a 60-watt incandescent light bulb can emit up to 800 lumens of light. On the other hand, LED light bulbs can deliver the same amount of brightness using only 10 watts. The lesser your energy usage is, the lesser your cost will be.

Given these considerations, LED lights are generally more energy-efficient and cost-effective.

How Much Do LED Lights Save in Dollars?

To understand how much money you can save when using LED lights, you need to first understand how the kilowatt hours work. A kilowatt hour (kWh) refers to the unit of energy that is equal to 1000-watt hours. Most electric companies bill consumers based on the number of kilowatt hours used each month. Thus, your monthly electric cost will depend on how much kilowatt hours you have consumed in a month.

The number of kilowatt hours you consume in a month will be multiplied by a rate, which determines the cost of your energy usage. Because LED lights use lesser amount of energy compared to incandescent and CFL lights, people who switch to LED lighting products will see a significant decrease in their monthly electric bill.

Let’s compare a 10-watt LED light and a 60-watt incandescent light bulb, both of which can give off up to 800 lumens of light. Considering the average electricity rate of $13.31 per kWh , the following table shows the cost to run one LED light for eight hours per day compared to the cost of using one incandescent light for the same number of hours per day.


8.5-Watt LED Light (60W Equivalent 60-Watt Incandescent Light
Energy usage for 8 hours per day 68 Watts 480 Watts
Energy usage in kWh 68/1000 = .068 kWh 480/1000 = 0.48 kWh
Cost per day ($.1331 per kWh) $.009 $.06
Cost per month $.009 x 30 = $.27 $.06 x 30 = $1.91
Cost per year $.009 x 365 = $3.30 $.06 x 365 = $23.32

Given the above example, you can save up to $1.64 per month or $20.02 per year if you choose to use LED lighting instead of incandescent light bulbs. It’s important to note that the amount of money you can save may vary depending on how many lights you use, how many hours per day you use them, the State you live in, and the current rate electricity rate in your State.

LED Cost Savings Calculator

If you want to know how much LED lights save in your hoe, this perfect LED cost savings calculator which will allow you to do just that. You can see exactly how much you will save per month or per year when converting from an incandescent to an LED bulb.

Simply complete the blank spaces with the specs that apply to your scenario. For the cost per kilowatt hour, you can get that from your energy bill or type in the current national average of $.1319

Next, key in the actual watts that each bulb uses. This should be displayed on the box or in small print on the light bulb. The number of watts for an incandescent bulb and a comparable LED bulb should be different.

Finally, just key in the number of hours that the bulb is used on average every day. Input the same number of hours for both bulb types and see your results!

LED Cost Savings Calculator
Cost per KW Hour($) $
LED Bulb Incandescent Bulb
Watts per Bulb
Average hours per day used
Watts used per day 0.00 0.00
Energy use in Kilowatt Hours 0.00 0.00
Cost per day 0.00 0.00
Cost per month $0.00 $0.00
Cost per year $0.00 $0.00
Savings per month per bulb $0.00
Savings per year per bulb $0.00

How Do LED Lights Differ From Other Lighting Products?

LED lights differ from other lighting products such as incandescent lights, halogens, and CFLs in several ways. Here are a few things that make LED lights more preferable:

  • Direction: LED lights emit light in a specific direction, which means they are able to use light and energy more efficiently, especially when used as recessed downlights and task lighting. CFL and incandescent lights, however, emit light and heat in all directions.
  • Light Source: LED lights produce white light by combining different color LEDs (such as amber, red, green, and blue). Sometimes, LED lights are covered with a phosphor material that converts the color of the light white light. Incandescent light bulbs produce light using electricity to heat a metal filament until it becomes white hot. CFLs use electric current that flows between electrodes at each end of a tube containing gases, which produce ultraviolet (UV) light and heat.
  • Thermal management: LED lights use heat sinks to manage heat. These heat sinks absorb the heat and dissipate it into the surrounding environment, keeping the LED lights from overheating. On the other hand, CFLs and incandescent light bulbs release 80% to 90% of their energy as heat.

LED Lights vs. Incandescent vs. Halogen vs. CFLs

LEDs Incandescent Halogen CFLs
Lumens per Watt 72 15 25 60
Energy usage for 800 lumens 10W 60W 43W 14W
Heat emission 20% 90% 80% 30%
Lifespan Approximately 34 years 1.4 years 4.2 years 14 years

When compared to other lighting products, LED lights are technically proven to be the most cost-effective and safe to use. LED lights uses lesser energy to provide the same amount of brightness compared to incandescent lights, halogens, and CFLs. This means that LED lighting products use less electricity to illuminate a room, helping you to save on electricity cost.

Additionally, LED lights can last up to 25,000 hours, which means that you do not need to change your light bulbs for 34 years with proper care and maintenance. This can help you save money, because you don’t have to keep on changing your light bulbs every now and then. Incandescent and halogen lighting products can only last up one to four years, while CFLs can last up to 14 years.

Read more about how long LED lights last

Other Benefits of LED Lighting

Aside from being energy-efficient and cost-effective, there are other benefits you can get from switching to LED lighting, such as the following:

  • LED lights are long-lasting. Because LED lights manage heat more effectively, it prevents overheating and burning. This means LED lights have a longer life span and can typically last up to 40 times longer than standard incandescent bulbs.
  • LED lights are more environment-friendly. LED lights use lesser energy compared to CFLs and incandescent bulbs, making it a greener option.
  • LED lights are free from mercury. LED lights do not contain mercury, making it safe to use at home and for the environment.
  • LED lights do not cause heat build-up. Only 20% of a LED light’s energy is used to emit heat, making it generally cool to use. LED lights do not contribute to the heat build-up in a room, which helps reduce air conditioning costs.
  • LED lights provide instant illumination. While CFLs would take a few moments to warm up, LED lights provide full brightness from the moment you turn it on.
  • Directional lighting reduces energy usage. LED lights are designed to emit their light in one direction, helping to reduce energy consumption because no light is trapped within reflectors and diffusers.
  • LED lights provide high brightness and intensity. LED lights are capable of emitting highs level of brightness using lesser energy.
  • LED lights offer a wide range of colors. While incandescent bulbs use gels or filters to create different shades of light, LED lights provide a range of colors and temperatures using the actual diode or its phosphorus coating.

Why Choose LED Lights?

There are many reasons why you should consider switching to LED lighting products for your home and office lighting. While LED lights are more expensive compared to other types of light bulbs, they are generally more cost-effective, considering its long lifespan and the amount of energy it needs to provide a certain level of brightness. Further, LED lights are the best choice for your safety and for the safety of our environment.

Read [Are LED Lights Safe?]

Other Relevant Articles

Tips for Saving Energy Costs  – Learn a few tips on how to save energy in the home in other ways besides home lighting.

Solar Energy Objections – Although converting to solar is a popular way to save on your electric bill, there are some objections you should know about.