LED vs. Incandescent Bulbs: Annual Savings, Payback, and Whole-House Switch
October 29, 2026
Lighting energy equals watts × hours ÷ 1,000 = kWh. A 60 W incandescent bulb gives roughly 800 lumens, the same as a 9 W LED. The difference of 51 W adds up: at 3 hours of use a day, 51 × 3 × 365 ÷ 1,000 = 55.8 kWh a year. At $0.16 per kWh, that is $8.93 a year saved per bulb.
An LED costing $2 pays for itself in $2 ÷ ($8.93 ÷ 12) = 2.7 months. Over its rated life of 25,000 hours (about 23 years at 3 hours a day), the LED saves roughly $200 compared with the incandescent, including the cost of replacing the 25 incandescent bulbs that last only 1,000 hours.
Skip the math and get your answer instantly:
Open the Unit Converter →Comparison Table for 800-Lumen Bulbs
Typical equivalents: 60 W incandescent (about 1,000 hours life), 43 W halogen (about 1,000 to 2,000 hours), 13 W CFL (8,000 hours), and 9 W LED (25,000 hours). Annual energy at 3 hours a day (1,095 hours): incandescent 65.7 kWh ($10.51), halogen 47.1 kWh ($7.54), CFL 14.2 kWh ($2.28), LED 9.9 kWh ($1.58). The LED saves $8.93 compared to incandescent. Bulbs that run longer have a bigger saving: a kitchen light on 6 hours a day saves $17.86 a year per bulb.
Incandescent bulbs also produce heat, which adds to cooling costs in summer but helps with heating in winter, and the net effect usually favors LEDs overall.
| Bulb type (800 lumens) | Watts | kWh per year (3 h/day) | Cost per year at $0.16 | Rated life (hours) |
|---|---|---|---|---|
| Incandescent | 60 | 65.7 | $10.51 | 1,000 |
| Halogen | 43 | 47.1 | $7.54 | 1,000-2,000 |
| CFL | 13 | 14.2 | $2.28 | 8,000 |
| LED | 9 | 9.9 | $1.58 | 25,000 |
Whole-House Example
A house with 30 bulbs averaging 3 hours a day saves 30 × $8.93 = $268 a year by replacing incandescents with LEDs. At $2 per bulb, the whole upgrade costs $60 and pays back in under 3 months. For 24 hours-a-day security lighting the savings are far greater. Dimmable and specialty LEDs cost more, $5 to $15 each, but payback is still within a year for frequently used fixtures.
Choosing Good LEDs
Match the lumens, not the watts; choose the color temperature (2,700 K is warm white, 5,000 K is daylight); check the CRI (90+ for good color); look for ENERGY STAR labels and the dimmable rating if used on dimmers. Cheap LEDs may fail early or flicker. Dispose of CFLs properly because they contain mercury.
Beyond the Bulbs
Use motion sensors and timers in places that are often left on, and take advantage of daylight. Utility rebates can reduce the price of LEDs even further. Lighting is typically 5% to 10% of household electricity, so after the swap, focus on larger loads such as heating, cooling, and water heating.
Frequently Asked Questions
How much does an LED save compared with a 60 W incandescent?
About $8.93 a year at 3 hours a day and $0.16 per kWh.
How quickly does an LED pay back?
In the example, in under 3 months.
How long do LEDs last?
Around 25,000 hours.
Should I compare watts or lumens?
Lumens.
Do incandescent bulbs help heat the house?
A little, but the net effect still favors LEDs.