Insulation ROI Calculator

Payback period from energy savings and insulation cost.

Building component

Current R-value

New total R-value

Annual heating/cooling cost

Insulation project cost

Energy cost inflation

%/yr

Insulation lifespan

years

Tab to move between fields

Heat loss reduction

77.55%

Simple payback

5.8 years

First-year savings$521.00

Inflation-adjusted payback5.4 years

Lifetime gross savings$24,794.00

Lifetime net savings$21,794.00

Return on investment726%

How to Use This Calculator

Enter Building component, Attic / ceiling, and Walls.
Set Floor / crawl space, Basement walls, and Ductwork.
Adjust Current R-value, New total R-value as needed.
Review Heat loss reduction (%) and Simple payback (years).
Use First-year savings ($) and Inflation-adjusted payback (years) to inform your decision.

How the result changes with New total R-value

Building component: Part of the building being insulated. Determines fraction of energy bill affected.
Current R-value: Existing insulation R-value before upgrade.
New total R-value: Target total R-value after adding insulation.
Annual heating/cooling cost: Total annual heating and cooling energy bill.
Insulation project cost: Total cost of insulation upgrade (materials + labor).
Energy cost inflation: Expected annual increase in energy costs. Historical average is 2-4%.
Insulation lifespan: Expected useful life of insulation. Most types last 20-50 years.

Heat loss reduction: Percentage reduction in heat loss through this component.
First-year savings: Estimated energy cost savings in the first year.
Simple payback: Years to recoup investment at current energy prices.
Inflation-adjusted payback: Payback period accounting for rising energy costs.
Lifetime gross savings: Total energy savings over the insulation lifespan.
Lifetime net savings: Gross savings minus project cost.
Return on investment: Net savings as a percentage of project cost.

Identify Input Parameters
4 parameters
Building component = 0, Current R-value = 11, New total R-value = 49, Annual heating/cooling cost = 2400 = 7 input(s) provided
Calculate Heat loss reduction
Heat loss reduction = 1 - currentR / totalR
77.55 = 77.55%
Calculate Simple payback
5.8 = 5.8
Calculate First-year savings
First-year savings = annualEnergyCost * envelopeFraction * heatLossReduction
521 = $521
Calculate Inflation-adjusted payback
5.4 = 5.4