AC Savings Calculator

How much can you save per year by upgrading to a high-efficiency SEER2 air conditioner?
Use this calculator to get an instant, personalized estimate based on your current system’s age and efficiency.
💵 Real Savings Data
🇨🇦 Canadian Electricity Rates
📊 Payback Period Included
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New Air Conditioner Savings Calculator
How much can you save by upgrading your air conditioner? Get an instant estimate of your potential annual electricity cost savings.
What is the size of your home?
How would you rate your home’s insulation & windows?
How many months per year do you use your AC?
Hours per day you run your AC (on average)
How old is your current central air conditioner?
The SEER rating of older units is used to calculate your current running costs.
What type of new AC are you considering?
What is your average electricity rate? ($/kWh)
Check your electricity bill. Average is $0.12–$0.15/kWh.
$0.13/kWh
0.07/kWh0.3/kWh
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💚 Savings Calculated
Your Potential AC Savings
Annual Savings
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Payback Period
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Current Annual Cost
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New Annual Cost
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How Much Can I Save by Upgrading My Air Conditioner?

The savings from upgrading to a high-efficiency AC depend on how old and inefficient your current unit is see our full central air conditioner buying guide for how to choose the right size and efficiency tier. An older 10 SEER AC (pre-2006) upgraded to a 20 SEER2 model can reduce your cooling electricity costs by 45–50%, and often signals it’s time to replace your AC rather than keep repairing it. Even upgrading from a 13 SEER to a 18 SEER2 system delivers meaningful savings — roughly 25–28% less electricity for cooling each year.
Old AC (SEER)New AC (SEER2)Annual Savings
(on $500/yr cooling bill)		10-Year Savings
8 SEER (pre-2000)18 SEER2~$278/yr~$2,780
10 SEER (2000s)18 SEER2~$222/yr~$2,220
13 SEER (2010s)18 SEER2~$139/yr~$1,390
13.4 SEER2 (2023)20 SEER2~$83/yr~$830
*Based on $500/year cooling electricity cost. Actual savings vary by home size, climate, and local electricity rates.

Understanding SEER vs SEER2

The US DOE introduced SEER2 in 2023, a stricter test that better reflects real-world ductwork conditions. Canadian AC units typically follow the same rating since most equipment is shared with the US market. A SEER2 of 13.4 is roughly equal to SEER 14 under the old standard. SEER2 units also tend to have better variable-speed compressors, so real-world savings often beat what the rating alone suggests.

Heat Pump vs. Central AC: The Savings Comparison

If you’re replacing your AC and your gas furnace is also aging, a heat pump vs. furnace comparison can help you decide which route makes sense for year-round comfort. In BC, Ontario, and Quebec — where electricity prices are moderate and gas prices are high switching to a heat pump for year-round heating and cooling can save $400–$1,200/year compared to separate gas furnace + AC systems. Our savings calculator can model both scenario or explore heat pumps in Canada in more depth first.

Understanding Your Payback Period

The payback period is how long it takes your energy savings to offset the upgrade cost see typical central air conditioner cost ranges to budget your upgrade. For example, if upgrading from a 10 SEER to 20 SEER2 AC saves $250/year and the upgrade (after rebates) costs $3,500, the payback period is 14 years. Since modern ACs last 15–20 years, that’s still financially positive that’s still financially positive, provided you keep up with basic AC maintenance to protect that lifespan and electricity prices are likely to rise over that period, improving your actual payback.
💰 Rebates Improve Payback
Federal and provincial rebates can reduce your net upgrade cost by $1,000–$5,000 for qualifying heat pump systems, dramatically improving the payback timeline.
📈 Rising Electricity Prices
Electricity prices in Ontario and BC have risen historically. Future price increases mean your savings grow over time, improving the real ROI of upgrading now.
🏡 Home Resale Value
A new high-efficiency AC or heat pump typically adds $2,000–$5,000 to your home’s resale value see our benefits of buying a new air conditioner for the full list in Canadian markets where cooling is expected by buyers.
🌡️ Climate Change
Canada’s summers are getting hotter. More cooling degree days means more AC runtime each year means more AC runtime each year pair your upgrade with our AC efficiency tips to keep costs down further. making efficiency improvements more valuable over a system’s lifetime.

💡 Rebates & Incentives

Up to $7,500 for cold-climate
air-source heat pumps, up to $12,000 for ground-source systems,
via Enbridge Gas and Save on Energy.
Up to $6,000 for qualifying heat pump
upgrades from electric heat.
Check local utility and municipal programs for current offers.
Rebate amounts and eligibility change often confirm details on the official program site before budgeting.

Common Questions About AC Savings Calculator

Is upgrading from 13 SEER2 to 18 SEER2 worth it?

Yes most homeowners save $80–$160/year, with payback in 5–12 years. If your unit is showing signs it needs repair rather than replacement, that changes the math.

Check the EnerGuide label on your outdoor unit, your owner’s manual, or look up your model in the [AHRI Directory]. If your AC isn’t cooling properly, a technician visit can confirm the rating and diagnose the issue at once.

Spring (April–May) before cooling season hits, prices are lower, and contractors have more availability. before cooling season hits. Compare central AC vs. ductless options now so you’re ready to move fast when the weather turns.

Rebates Available
Canadian homeowners may qualify for up to
$5,000
in federal and provincial rebates on qualifying systems.
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