SEER Savings Calculator

SEER (Seasonal Energy Efficiency Ratio) measures cooling output in BTU divided by electrical input in watt-hours over a typical cooling season:

SEER = Total Cooling Output (BTU) ÷ Total Electrical Input (Wh)

What SEER Numbers Mean:

Efficiency Comparison: Each SEER point improvement reduces energy consumption by approximately 6-8%:

The Key Insight: A SEER 20 unit uses half the electricity of a SEER 10 unit to provide the same cooling.

In January 2023, the Department of Energy introduced new efficiency standards with updated testing procedures:

New Regional Minimums:

SEER vs. SEER2: SEER2 uses a higher external static pressure (ESP) in testing, simulating more realistic ductwork conditions:

Example Conversions:

What This Means:

• New units display SEER2 ratings
• SEER2 ratings are ~5% lower than SEER for same equipment
• Efficiency requirements effectively increased
• Real-world performance better predicted by SEER2

Your climate zone determines how many hours your AC runs annually—the key variable in savings calculations:

Annual Cooling Hours by Climate:

Cooling Degree Days (CDD) Reference:

Impact on Savings: The same SEER upgrade produces vastly different savings by climate:

Hot climates justify higher-efficiency upgrades because the equipment runs more hours.

Follow this step-by-step process to calculate your exact savings:

Step 1: Determine Annual Cooling BTU

Annual BTU = Tonnage × 12,000 BTU/ton × Cooling Hours
Example: 3-ton system, 1,500 cooling hours
= 3 × 12,000 × 1,500 = 54,000,000 BTU/year

Step 2: Calculate Energy Use at Each SEER

kWh = Annual BTU ÷ (SEER × 1,000)

Current (SEER 10): 54,000,000 ÷ 10,000 = 5,400 kWh
New (SEER 16): 54,000,000 ÷ 16,000 = 3,375 kWh

Step 3: Calculate Annual Savings

kWh Saved = Current kWh - New kWh
= 5,400 - 3,375 = 2,025 kWh saved

Dollar Savings = kWh Saved × Electricity Rate
= 2,025 × $0.14 = $283.50/year

Quick Estimation Table (3-ton system, 1,500 hours):

Electricity Rate Impact:

The payback period tells you how long until energy savings offset the higher upfront cost:

Payback Formula:

Payback (years) = Additional Cost ÷ Annual Savings

2026 AC Equipment Costs by SEER:

Payback Example:

Upgrading from minimum (SEER 15, $5,500) to high-efficiency (SEER 20, $9,000)
Cost difference: $9,000 - $5,500 = $3,500
Annual savings: $275 (hot climate)
Payback: $3,500 ÷ $275 = 12.7 years

Payback by Climate and SEER Upgrade:

Key Insight: In cool climates, the payback often exceeds equipment lifespan, making mid-efficiency units (SEER 16-18) the smart choice. In hot climates, high-efficiency units (SEER 20+) often pay back within 10-12 years.

Looking at total cost of ownership over equipment lifespan gives the complete picture:

AC Equipment Lifespan:

15-Year Total Cost Comparison:

*Assumes 3-ton, 1,200 cooling hours, $0.15/kWh

When High-Efficiency Wins: With higher electricity rates and more cooling hours:

**2,000 cooling hours, $0.20/kWh

The Sweet Spot: In most scenarios, SEER 16-18 offers the best total cost of ownership—enough efficiency improvement to matter, without the premium price of ultra-high-efficiency units.

Premium AC units use variable-speed compressors that improve both efficiency and comfort:

How Variable-Speed Works:

Why Variable-Speed Achieves Higher SEER:

• Runs longer at lower capacity (more efficient operating point)
• Reduces cycling losses (startup uses extra energy)
• Matches output to actual cooling load
• Removes more humidity at lower speeds

SEER vs. Real-World Efficiency:

Variable-speed units perform closer to rated SEER because they operate at optimal efficiency more often.

2026 Price Premium for Variable-Speed:

Humidity Control: In humid climates, variable-speed units excel at dehumidification:

• Run longer at low speed = more moisture removal
• Maintain 45-50% RH vs. 55-65% with single-stage
• Improved comfort at higher thermostat settings

Timing your AC replacement strategically maximizes value:

Upgrade Triggers:

R-22 Phase-Out Impact: R-22 refrigerant (Freon) production ended in 2020:

If your system uses R-22, replacement is often more economical than recharging.

Emergency vs. Planned Replacement:

Pre-Upgrade Checklist:

1. Get Manual J load calculation (right sizing)
2. Inspect and seal ductwork
3. Check insulation levels
4. Address air sealing
5. Consider whole-home approach (AC + furnace)

Reducing Load Before Upgrading: Improving insulation and sealing may allow a smaller, less expensive AC while improving comfort.

Heat pumps provide both cooling and heating with superior efficiency:

Heat Pump Efficiency:

Heat Pump Types:

2026 Cost Comparison (3-ton):

Heat Pump Tax Credits (2026):

When Heat Pump Makes Sense:

• Replacing both AC and furnace
• Electric heat currently (heat pump is 3× more efficient)
• Mild to moderate climates (Zone 3-5)
• Goal to reduce natural gas use
• Taking advantage of tax credits

Incentives can significantly reduce the net cost of high-efficiency equipment:

Federal Tax Credits (2026):

Note: The AC tax credit expired; only heat pumps qualify.

Utility Rebates (vary by provider):

How to Find Rebates:

1. Check your utility`s website
2. Search DSIRE database (dsireusa.org)
3. Ask HVAC contractors about current offers
4. Check manufacturer promotions

Example Net Cost:

SEER 20 Heat Pump: $10,000 installed
- Utility rebate: -$800
- Federal tax credit (30%): -$3,000
Net cost: $6,200

Comparable SEER 16 AC: $6,000 installed
- No credits available
Net cost: $6,000

Heat pump is only $200 more with credits!

Timing for Best Incentives:

• Utility rebates often change quarterly
• Federal credits are annual limits (reset January 1)
• Manufacturers offer spring/fall promotions
• Some programs have limited funding (first-come)