Energy Tariff Switch Savings
Calculator
Results
- Break-even (years)
- 0.254237 yr
- Net position at the horizon
- $1,600.11
- Total savings
- $1,660.11
- First-year saving
- $236.00
- First-year bill on the new tariff
- $1,122.00
Cumulative cash flow crossing zero at break-even
- Cumulative cash flow
- Cumulative cost of doing nothing
- Cumulative cost with the upgrade
Year-by-year cash flow until break-even
| 1 | 236.00 | 236.00 | 176.00 | 1,358.00 | 1,182.00 |
| 2 | 294.90 | 530.90 | 470.90 | 2,774.90 | 2,304.00 |
| 3 | 356.75 | 887.65 | 827.65 | 4,253.65 | 3,426.00 |
| 4 | 376.08 | 1,263.73 | 1,203.73 | 5,797.33 | 4,593.60 |
| 5 | 396.39 | 1,660.11 | 1,600.11 | 7,409.19 | 5,809.08 |
Comparison
| Scenario | Total cost over the horizon | Cumulative energy cost | Net position at the horizon |
|---|---|---|---|
| Do nothing | 7,409.19 | 7,409.19 | 0.00 |
| With the upgrade | 5,809.08 | 5,809.08 | 1,600.11 |
Formula
saving(n) = kWh × (p_old(1+g)^(n−1) − p_new(n)) + Δstanding charge= 0.25
Note
This is a simplified cash-flow model. It projects the prices, escalation rate and equipment costs you entered with a single geometric escalation and no discounting, no inflation adjustment, no financing costs and no tax treatment; savings are assumed to accrue evenly within each year, which is what the fractional break-even interpolates. Real energy prices, tariff structures, grants, weather, occupancy and equipment performance vary widely and change over time. A break-even of zero means the cumulative cash flow never crosses into positive territory within the horizon you chose. Get a professional energy assessment and a written quotation before committing to any of these measures.
More in Energy payback
See all →Frequently asked questions
What exactly does the calculator compare between my current and new tariff?+
It compares your total annual cost under each tariff structure, applying your actual usage pattern (including time-of-use if relevant) to each plan's rates, standing charges, and any tiered pricing thresholds. A cheap per-unit rate with a high standing charge can lose to a slightly higher rate with no standing charge if your usage is low, so the total annual cost is what matters, not the headline rate.
Why does my usage pattern matter for time-of-use or variable tariffs?+
Time-of-use tariffs charge different rates by hour or season, so the savings depend entirely on what fraction of your usage falls into cheap versus expensive windows, not just your total kWh. A household that runs the dishwasher, EV charger, and laundry overnight benefits far more from a time-of-use switch than one that uses most electricity during peak evening hours.
Does the calculator account for exit fees or contract termination penalties?+
It should subtract any early termination fee from your current contract from the first year's savings, since that fee is a real, one-time cost of switching. Ignoring it can make a switch look worthwhile when the exit fee actually erases most or all of the first year's gain.
Why might a switch show savings on paper but not materialize in practice?+
The estimate assumes your usage pattern stays constant, but tariffs with different structures can change your incentives — for example, a time-of-use plan might increase your total kWh if you shift usage into 'cheap' hours without also reducing overall consumption. Also check whether the new tariff's advertised rate is a promotional rate that reverts to a higher standard rate after a fixed period.
How often should I re-run this comparison?+
Re-check whenever your utility announces a rate change, when a fixed-rate contract is nearing its end date, or at least annually, since energy markets and available tariffs shift often enough that last year's best deal is rarely still the best one. Many regulators require utilities to notify you before a promotional rate expires — that notice is a good trigger to re-run the comparison.