Climate Action ROI Calculator

Cost-benefit of climate mitigation actions.

Investment cost ($)

CO2 reduction (tonnes/yr)

Energy savings ($/yr)

Project lifespan (years)

Discount rate (%)

Carbon price ($/tonne)

Tab to move between fields

Net present value ($)

$11,647.00

≈ 8 months of rent

Benefit-cost ratio2.16

Simple payback (years)6.9

Internal rate of return (%)13.4%

Annual benefit ($)$1,455.00

Total CO2 avoided (tonnes)100

Abatement cost ($/tonne)-140

NPV of benefits ($)$21,647.00

How to Use This Calculator

Enter investment cost ($) and estimated annual CO₂ reduction (tonnes/yr).
Set annual energy savings ($/yr), project lifespan (years), discount rate (%), and carbon price ($/tonne).
Review Net Present Value, Benefit-Cost Ratio, Simple Payback (years), and IRR (%).
A benefit-cost ratio above 1.0 means the climate investment pays for itself in present value terms.

How the result changes with Energy savings ($/yr)

Investment cost ($): Upfront cost of the climate action or efficiency project.
CO2 reduction (tonnes/yr): Estimated annual CO2 reduction in metric tonnes.
Energy savings ($/yr): Annual dollar savings from reduced energy consumption.
Project lifespan (years): Expected useful life of the project in years.
Discount rate (%): Annual discount rate for NPV calculations. EPA uses ~3%.
Carbon price ($/tonne): Social cost of carbon or market carbon credit price per tonne CO2.

Net present value ($): NPV of all benefits minus investment cost.
Benefit-cost ratio: Ratio of discounted benefits to investment cost. >1 means positive ROI.
Simple payback (years): Years to recover investment from annual savings.
Internal rate of return (%): Annualized rate of return on the climate investment.
Annual benefit ($): Combined annual energy savings and carbon value.
Total CO2 avoided (tonnes): Cumulative CO2 reduction over the project lifespan.
Abatement cost ($/tonne): Net cost per tonne of CO2 avoided after energy savings. Negative means net savings.
NPV of benefits ($): Present value of all future benefits discounted to today.

Identify Input Parameters
4 parameters
Investment cost ($) = 10000, CO2 reduction (tonnes/yr) = 5, Energy savings ($/yr) = 1200, Project lifespan (years) = 20 = 6 input(s) provided
Calculate Net present value
Net present value = npvBenefits - investmentCost
11647 = $11,647
Calculate Benefit-cost ratio
Benefit-cost ratio = npvBenefits / max(1, investmentCost)
2.16 = 2.16
Calculate Simple payback
Simple payback = Math
6.9 = 6.9