Smart Building ROI Calculator
Building IoT system payback from energy and maintenance savings.
Inputs
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Results
Annual savings ($)
$40,563.00
≈ 4 years of state college
Implementation cost ($)$250,000.00
Payback period (years)6.2
5-year ROI (%)-19
Energy reduction (%)16.8
Energy savings ($/yr)$29,313.00
How to Use This Calculator
- Enter building size in sq ft and current annual energy cost per sq ft.
- Set HVAC and lighting energy shares as percentages of total energy.
- Enter implementation cost per sq ft and expected HVAC and lighting savings percentages.
- Input annual maintenance cost to capture O&M savings.
- Review Annual savings ($), Payback period (years), and 5-year ROI (%) to evaluate the upgrade.
How the result changes with Building size (sq ft)
| Building size (sq ft) | Annual savings ($) |
|---|---|
| 1,000,090 | $597,553.00 |
| 3,500,065 | $2,063,163.00 |
| 6,500,035 | $3,821,896.00 |
| 9,000,010 | $5,287,506.00 |
What each input means
- Building size (sq ft)
- Total conditioned floor area in square feet.
- Energy cost ($/sq ft/yr)
- Annual energy cost per square foot. US avg office: $2.50-$4.50/sq ft.
- HVAC energy share (%)
- HVAC as percentage of total energy. Offices: 35-45%, warehouses: 15-25%.
- Lighting energy share (%)
- Lighting as percentage of total energy. Offices: 20-30%.
- Annual maintenance ($)
- Total annual building maintenance budget.
- Implementation ($/sq ft)
- Smart building upgrade cost per sq ft. Retrofit: $3-8, new construction: $1-5.
- HVAC savings (%)
- Expected HVAC energy reduction. Typical: 15-30% with occupancy + weather optimization.
- Lighting savings (%)
- Expected lighting energy reduction. Typical: 30-50% with occupancy + daylight harvesting.
What each result means
- Annual savings ($)
- Total annual savings from energy + maintenance reductions.
- Implementation cost ($)
- Total one-time cost for smart building upgrade.
- Payback period (years)
- Simple payback period. -1 = no payback.
- 5-year ROI (%)
- Return on investment over a 5-year period.
- Energy reduction (%)
- Overall energy cost reduction percentage.
- Energy savings ($/yr)
- Annual energy cost savings from HVAC + lighting optimization.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersBuilding size (sq ft) = 50000, Energy cost ($/sq ft/yr) = 3.5, HVAC energy share (%) = 40, Lighting energy share (%) = 25 = 8 input(s) provided
- Calculate Annual savingsAnnual savings = totalEnergySavings + maintenanceSavings40563 = $40,563
- Calculate Implementation costImplementation cost = buildingSqFt * implementationCostPerSqFt250000 = $250,000
- Calculate Payback period6.2 = 6.2
Engine last updated .
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