Commercial LED Savings Calculator
Our free done-for-you led light savings calculator tool is designed to help contractors and facility managers easily estimate energy costs, cost reductions, and kWh savings when transitioning from legacy lighting systems to LEDs.
With just a few inputs, this tool provides immediate calculations of the energy savings you can expect when upgrading your existing fixtures.
Why convert to LEDs? It is one of the most cost-effective investments in energy efficiency for commercial and industrial facilities. When replacing traditional lighting options such as standard incandescent bulbs, fluorescent, or metal halides with LEDs, your energy cost typically will be reduced by at least 50%.
Even replacing older LEDs will decrease your electricity bill, as since 2010, average LED efficacy has improved by 6 to 8 lumens/Watt (lm/W) year over year.
How To Use LED Lighting Supply's Free Commercial LED Savings Calculator
Input the wattage of the LED fixture you plan to install. This information is available on the fixture specification sheet or product label. Avoid assuming based on legacy wattage equivalency since LED fixtures consume significantly fewer watts than traditional lighting. Our Product Specialists can recommend the appropriate LED wattage based on your current fixtures and application requirements.
Input the wattage of your existing light fixtures. This data is found on the fixture label, lamp specification, or facility lighting audit documentation. Only input the base wattage, if applicable, the additional draw from a ballast is accounted for in Step 6.
Enter the number of light fixtures you are replacing. Our calculator can handle any volume and provides instant results based on the exact fixture quantity. For comprehensive facility upgrades, conduct a fixture count by area or zone.
Need help determining how many lights need to be replaced? Request a free lighting plan and initial consultation. Our Product Specialists will design a custom-tailored lighting layout plan ahead of purchase with accurate fixture counts.
Input your average daily usage in hours. This varies significantly by project type. To get the most accurate savings and return on investment from our Commercial LED Savings Calculator, we recommend estimating your daily lighting hours as precisely as possible.
Here are three ways to calculate or estimate this input based on how your facility operates:
Option 1: Using Automation or Controls, if Available
If your building uses lighting controls like motion sensors, timers, or a building automation system, you may already have access to real usage data. This is often the most accurate method if controls are in place.
- Locate System Logs or Control Panel Data: Look for system logs that track run-time or occupancy hours in areas where you are replacing fixtures.
- Export Usage Reports: Download the report for the last 30 days (or your preferred period).
- Calculate Your Average Daily Usage: Use the formula below to calculate average daily usage. Total the daily usage hours and divide by the number of days tracked to get your average.
Average Daily Electricity Consumption Formula Using Automation or Controls
- Average Daily Hours = Total Hours Lights Were ON ÷ Number of Days Tracked
Option 2: Determining Average Daily Lighting Hours Based on Manual Tracking Method
This method is commonly used by facilities without automated lighting systems.
- Identify Zones: List out each distinct area where you are planning to replace light fixtures, such as warehouse, production floor, and office.
- Observe or Record Usage: Track when the lights are turned ON and OFF in each zone for at least one full week. This provides a baseline for usage patterns.
- Calculate Daily Usage: Use the formula below to calculate daily usage:
- Daily Usage Hours = Time OFF – Time ON
- Average Your Data: Use the formula below to calculate average daily usage.
- Average Daily Hours = Total Hours Lights Were ON ÷ Number of Days Tracked
Option 3: Estimating Average Daily Lighting Hours Based on Facility
If you can’t measure lighting hours directly, make an estimate for each section of your facility you plan on replacing fixtures based on your facility’s work schedule:
- Estimate Hours Based on Work Schedule
- Office Building Example: 8:00 AM – 6:00 PM = 10 hours/day
This estimate assumes the lights are on throughout the full workday.
- Warehouse or Industrial Facility Example: 3 shifts at 8 hours each = up to 24 hours/day
Adjust this estimate if lighting is only used in active zones or specific shifts. Be sure to account for weekends, holidays, and reduced operating hours if applicable.
Estimate the number of days per year your facility uses the lights. Most commercial facilities operate 250-365 days annually, depending on business type, while manufacturing facilities often operate year-round. Enter a realistic number based on your business calendar to maximize calculator accuracy.
Here are three ways to calculate or estimate this input based on how your facility operates:
Option 1: Use Fixed Schedules or Facility Calendars
For facilities that follow consistent weekly schedules or calendar-based operations, use work calendars to determine how many days per year your lights operate.
Office Building Example:
- If your business runs Monday through Friday:
- 5 days/week × 52 weeks = 260 days
- Subtract downtime or holidays (e.g., 10 days)
- Estimated Usage = 250 days/year
Warehouses or 24/7 Facility Example: Many industrial operations run daily. Estimated Usage = 365 days/year
Seasonal or Academic Facilities Example: Adjust for your specific calendar (e.g., schools may operate only 180 days/year)
Option 2: Manual Tracking Light Usage Per Year
Ideal for businesses with varying operations, flexible schedules, or seasonality.
- Create a list of spaces where you anticipate replacing fixtures, such as warehouses, production areas, offices, and outdoor lots.
- Observe or log lighting activity in each zone over a sample period (e.g., 30 days). Each day, record whether lights were ON at any point. Repeat this process across all applicable zones.
- Estimate Annual Usage: Use the formula below to calculate how often your lights are used over a full year.
- Average Annual Usage = (Days Used) ÷ (Sample Period) × 365
Considerations: Estimating Without Logs or Calendars
If tracking isn’t practical, use your best estimate based on:
- Known business hours
- Production shift schedules
- Staffing or occupancy patterns
- Industry benchmarks
Our Experts have provided a few general guidelines for average light usage per year based on facility type:
- Standard business office: approximately 250 days per year, or 2,500 hours per year
- School: ~180 days per year, or 1,800 hours per year
- 24/7 operation: 365 days per year, or 8,760 hours per year
This approach is helpful when planning or budgeting a retrofit before operations are fully underway.
Traditional light fixtures, such as metal halide (MH), high-pressure sodium (HPS), and fluorescent lamps (including both linear fluorescent tubes and compact fluorescent lamp bulbs), all require a ballast to operate.
What is a ballast? Ballasts regulate electrical current. A major setback of these legacy lighting fixtures is that they consume 15% more wattage than the lamp’s rated wattage.
Identifying whether your current fixtures use one of these technologies helps ensure the most accurate savings estimate in our instant, done-for-you LED light savings calculator. Forgetting this step can significantly understate your actual energy usage and underestimate your potential savings.
Not sure what kind of lighting you’re currently using? Here are a few ways how to check:
- Look at the Fixture
Metal halide and HPS bulbs are typically long, tube-shaped, or elliptical with a screw base and a ceramic arc tube inside. Fluorescents are often long tubes (T8, T12) or compact spirals (CFLs). If you see these, your fixture likely uses a ballast. - Listen for Noise or Check for Warm-Up Time
Ballast-driven fixtures often make a humming sound or take time to reach full brightness. LEDs, in contrast, turn on instantly and operate silently. If your lights flicker or delay on startup, they’re likely metal halide (MH), high-pressure sodium (HPS), or fluorescent fixtures. - Check the Label or Sticker Inside the Fixture
Open the fixture housing (after safely turning off power) and look for a label or data plate. It often lists the lamp type (e.g., "MH 400W", "HPS 250W", "F32T8", etc.). If the label includes any of these terms, your fixture uses ballast-driven lamps. - Locate the Ballast Box
In many fixtures, the ballast is a separate metal box mounted inside or on top of the fixture housing. It will have its own label and input wattage. If you see one, your system is ballast-based. - Ask one of our Lighting Experts
Our Product Specialists at LED Lighting Supply can help you identify your existing fixtures and recommend energy-efficient LED replacements to maximize energy efficiency.
Frequently Asked Questions
How Much Money Will We Save by Switching to LED Lighting?
This is one of the most common questions we receive. Savings vary by the light fixture type being replaced, usage hours, and local energy cost. On average, our customers have saved 50%–75% on energy costs by investing in LED fixtures. Speak to one of our Product Specialists who can do a calculation and estimate exact savings for your facility.
When comparing different light bulb types, incandescent bulbs are the least energy efficient and have the shortest lifespan, while CFL bulbs offer better efficiency and a longer life but contain small amounts of mercury. LED light bulbs are the most energy efficient and long-lasting options, with a lower environmental impact than other bulb types.
LED light bulbs can last up to 50,000 hours, significantly outpacing the lifespan of traditional lighting options. Although the initial price of LED bulbs can be higher than traditional light bulbs, the cost is decreasing over time and is offset by significant energy savings and reduced replacement needs.
What is the Payback Period for an LED Lighting Upgrade?
Our customers have reported that their commercial and industrial LED upgrades pay for themselves within 1 to 3 years. This number will vary depending on usage, light fixture cost, and available rebates. After that, the benefits of continued energy savings contribute directly to your bottom line.
Should I Include Ballast Wattage in My Current Fixture Consumption?
No, even though traditional ballasted fixtures consume significantly more wattage than energy efficient LED fixtures, the calculator automatically accounts for ballast consumption when you select the appropriate fixture type.
How Do I Determine Operating Hours for Facilities with Variable Schedules?
Calculate weighted averages based on seasonal variations and operational patterns. For example, if your facility operates 14 hours daily during peak season (4 months) and 8 hours during off-season (8 months), use 10 hours as your average.
Our Product Specialists can help analyze your specific operating patterns to ensure accurate projections.
Or, you can use the formula below to calculate:
- Weighted Average Hours = ((Peak Season Hours x Peak Season Months) + (Off-Season Hours x Off-Season Months)) / Total Months
How Will LED Lighting Impact Our Facility’s Energy Usage and Carbon Footprint?
Our Product Specialists have helped thousands of facilities retrofit LEDs. We have found with our commercial and industrial customers that upgrading to LEDs reduces wattage use by half or more, significantly lowering total energy consumption and cost.
LED lights produce less CO2 compared to traditional fixtures, making them an environmentally friendly choice.
Are Utility Rebates Available? How Do They Affect Total Project Cost?
Yes, every light fixture in our stock is rebate-eligible. These incentives can cover up to 20%–50% of project costs. If you’re looking to reduce investment costs and maximize ROI, Our Product Specialists can help you navigate available rebates specific to your project.
How Do LEDs Affect My Ongoing Energy Cost?
Contractors we work with prefer LED fixtures due to their energy efficiency, elongated service life, and reduced maintenance over traditional lighting types. In turn, this results in lower energy costs and operating expenses. The long lifespan of LEDs reduces the need for frequent replacements, mitigating additional maintenance costs.
How Many Fixtures Will We Need? What is my Expected Total Project Cost?
In our 15+ years of lighting experience, we have found that the fixture count and up front investment depends on the layout of the project, project type (commercial, industrial, or sports-related projects), and desired light levels.
Request a free lighting plan to determine the proper fixture count and layout configuration. A Product Specialist can help break down expected project costs based on the light fixture type, fixture count, and available rebates.
Start Your LED Lighting Upgrade Project With LED Lighting Supply
Ready to get your project started? Speak with one of our Product Specialists to discuss your specific requirements. You can also explore our commercial LED case studies to see real-world results from similar facilities, or listen to our podcast for additional energy savings strategies.
