DECISION GUIDE 01

Keep an old refrigerator or replace it?

Replacement pays only when the avoided electricity cost recovers the relevant purchase cost within the years you expect to own the replacement. Age alone does not answer that question.

01 / COLLECT THE INPUTS

Start with model-specific energy use

For a new refrigerator, use annual kilowatt-hours from its yellow EnergyGuide label. The Federal Trade Commission requires the label to disclose tested annual energy information and a comparison range for similar models. Compare refrigerators of similar capacity and configuration; federal standards and ENERGY STAR criteria vary by product class and features.

For the existing refrigerator, use its original EnergyGuide value when available or a sufficiently long measurement that captures normal compressor cycling. A short observation, nameplate wattage, or age-based guess can misstate annual use.

02 / DEFINE THE DECISION

Optional replacement and required replacement use different costs

Working refrigerator

If replacement is optional, test the full net purchase, delivery, installation, and disposal cost, less confirmed rebates.

Replacement already required

If failure makes a purchase unavoidable, compare the incremental price of the efficient candidate with the alternative you would otherwise buy.

Ownership horizon

Reject an energy-only payback that occurs after the years you reasonably expect to keep the new refrigerator.

Repair risk, food loss, financing, resale value, disposal, warranty coverage, and non-energy differences may matter, but the calculator does not estimate them. Add them separately only when supported by evidence relevant to the household.

03 / WORKED EXAMPLE

The same appliance can cross the line in one state and miss it in another

This example is illustrative, not a claim about a typical refrigerator. Suppose a measured old unit uses 900 kWh per year, a comparable new model’s EnergyGuide label shows 400 kWh per year, and optional replacement costs $1,200 net. The annual energy difference is 500 kWh.

At the EIA 2026-05 national residential average of 18.44¢/kWh, estimated savings are $92.20 per year and simple payback is 13.0 years. At California’s 33.25¢ average, payback is 7.2 years; at Idaho’s 12.35¢ average, it is 19.4 years.

Run your refrigerator numbers →

04 / TEST UNCERTAINTY

Use a range before accepting the verdict

Run at least three scenarios: a low-saving case with lower old-unit consumption, a base case from the best available measurement, and a high-saving case. Repeat with the bill rate and plausible ownership periods. A replacement decision is more robust when payback remains inside the ownership horizon across the reasonable range.

Do not force a verdict when the products provide different storage capacity, freezer configuration, ice-making, temperature performance, or other required service. Electricity cost can be compared; product suitability cannot be inferred from kilowatt-hours alone.

05 / PRIMARY SOURCES

Check the underlying records

Method reviewed July 29, 2026. This guide provides a planning framework, not engineering, repair, product-selection, or financial advice.