The formula
saving = (old wattage − LED wattage) ÷ 1,000 × hours × price per kWh
Where it comes from
An LED gives the same light as an incandescent bulb on about 87 % less power: 8 watts against 60. Since the bill is paid by the kilowatt hour, that difference turns straight into money, and the longer the bulb is on, the sooner it shows.
How to work it out by hand
- Subtract the LED's wattage from the old bulb's
- Divide by a thousand to get kilowatts
- Multiply by the hours of use a year and by the number of bulbs
- Multiply by the price of a kilowatt hour
What is worth knowing
What to look at when buying is not the watts but the lumens, which is the light it actually gives: around 800 lumens matches the old 60 W bulb. And colour temperature changes the feel of a room completely: 2700 K is warm light, like an incandescent; 4000 K is neutral, for kitchens and bathrooms; above 5000 K the light is cold and unpleasant in living rooms and bedrooms.