The difference between a 14 SEER2 and an 18 SEER2 air conditioner saves a typical homeowner $120–$300 per year in electricity costs, depending on climate, system size, and local rates. Use the calculator below to see exactly how much you'll save by choosing a higher-efficiency unit, and how long it takes for the energy savings to pay back the higher purchase price.
Enter your details and compare up to three SEER2 ratings side by side to make a data-driven purchasing decision.
SEER2 Savings Calculator
How to Use This Calculator
System Size (Tons): Your AC's cooling capacity. Common residential sizes are 1.5 to 5 tons. If you're unsure, check your current outdoor unit's data plate or use 1 ton per 500-600 sq ft as a rough estimate. Most homes use 2.5-3.5 tons.
Electricity Rate ($/kWh): Your cost per kilowatt-hour. Find this on your electric bill or use the U.S. average of $0.16/kWh. Rates range from $0.08/kWh in Louisiana to $0.36/kWh in Hawaii.
Annual Cooling Hours: How many hours your AC runs per year. This varies dramatically by climate: 600-1,000 hours in the North, 1,200-2,000 in mixed climates, 2,000-3,000+ in the South and Southwest.
SEER2 Ratings to Compare: Enter two or three SEER2 values. For example, compare the federal minimum for your region against a mid-range and premium option.
Reference Data: Inputs for Your Area
Average Electricity Rates by State (2024-2026)
Estimated Annual Cooling Hours by Region
Pre-Calculated Savings Tables
If you prefer a quick reference, here are savings for common scenarios:
Scenario 1: 3-Ton AC, $0.16/kWh, 1,500 Cooling Hours
Scenario 2: 3-Ton AC, $0.16/kWh, 2,500 Cooling Hours (Hot Climate)
Scenario 3: 2.5-Ton AC, $0.13/kWh, 1,000 Cooling Hours (Northern)
Notice the diminishing returns. In the hot climate scenario, going from 14.3 to 18 SEER2 saves $207/year. Going from 18 to 22 SEER2 (same 4-point jump) saves only $145/year more. The biggest efficiency gains come from moving away from the minimum. Each additional SEER2 point saves less than the one before it.
Payback Period Analysis
The payback period tells you when energy savings offset the higher upfront cost. Use this formula:
Simple Payback (years) = Added Cost / Annual Savings
Typical Payback Periods
These payback periods improve significantly in three situations:
- Hot climates (2,500+ cooling hours): paybacks drop by 40-50%
- High electricity rates ($0.20+/kWh): paybacks drop by 25-40%
- Tax credits applied: the $600 AC or $2,000 heat pump credit cuts payback by 2-6 years
In Miami at $0.16/kWh with a $600 tax credit, the payback for 14.3 to 18 SEER2 drops from 12-20 years to just 5-10 years.
Accounting for Electricity Price Increases
Electricity prices have risen an average of 2-3% per year over the past two decades. This accelerates payback for high-efficiency units because your savings grow each year while the upfront cost is fixed.
At a 3% annual increase, the 15-year savings jump from $1,860 to $2,310 — a 24% increase in total savings compared to the flat-rate estimate.
Factors the Calculator Doesn't Capture
While this calculator gives you a reliable estimate of direct electricity savings, several factors aren't included:
Maintenance costs. Higher-SEER2 variable-speed systems may have higher maintenance costs due to more complex electronics and controls. Budget $150-$300/year for professional maintenance regardless of SEER2 level.
Repair probability. Variable-speed compressors and inverter boards can be expensive to replace ($1,500-$3,500). Single-stage systems have fewer failure points. Extended warranties help mitigate this risk.
Comfort value. Variable-speed systems (18+ SEER2) offer better humidity control, more even temperatures, and quieter operation. These comfort benefits have real value that doesn't show up in energy savings alone.
Resale value. A high-efficiency HVAC system can increase home resale value, though the premium varies by market and is difficult to quantify precisely.
Rebates and incentives. Beyond the federal tax credit, many utilities offer $200-$500 rebates for high-efficiency installations. Check dsireusa.org for your area.
Key Takeaways
- The biggest savings come from avoiding the minimum. Jumping from 14.3 to 16-18 SEER2 saves $64-$124/year in a typical scenario.
- Hot climates see the fastest payback — 2,500+ cooling hours can cut payback periods nearly in half.
- Electricity rates above $0.15/kWh make high-SEER2 upgrades significantly more attractive.
- Diminishing returns kick in above 18-20 SEER2 unless you're in a very hot climate or have high electricity rates.
- Factor in tax credits — the $600 AC credit or $2,000 heat pump credit can reduce payback by 2-6 years.
- Rising electricity prices (2-3% annually) increase your lifetime savings by 15-25% over flat-rate estimates.
- For most homeowners, 16-18 SEER2 provides the best return on investment when balancing upfront cost, energy savings, and system lifespan.
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