The bright yellow EnergyGuide label you see on refrigerators, washers, water heaters and other appliances in U.S. stores is required by the Federal Trade Commission. Used well, it tells you what an appliance will really cost to run, often a bigger number over its lifetime than the price difference between models.
What’s on the label
- Estimated yearly energy cost: the large dollar figure, based on a national average energy price and typical use.
- Cost range: a bar showing where this model falls compared with similar models.
- Estimated yearly electricity use: in kilowatt-hours (or therms for gas appliances).
- Key features and model details that define the comparison group.
- ENERGY STAR logo, if the model meets that program’s efficiency criteria.
Use the kWh number, not just the dollars
The dollar figure uses an average price, which may be far from what you pay. For a more accurate estimate, multiply the yearly kWh by the rate on your own bill:
your yearly cost = yearly kWh on the label × your rate per kWh
Example: 600 kWh × $0.20 = $120 per yearHow to compare two models
- Make sure they’re in the same category and size class; a label only compares similar appliances.
- Find the difference in yearly kWh and multiply by your rate.
- Multiply that yearly saving by how many years you expect to keep the appliance.
- Compare the total with the difference in purchase price.
A model that costs more upfront can be the cheaper choice over ten years, or not; the math tells you.
Appliances without a label
Smaller devices often only list watts. Estimate their cost from wattage and hours of use with our Electricity Cost Calculator, and read Watts, Kilowatt-Hours and Your Bill to understand the numbers.
