Use the part of your power bill that goes to cooling. The savings scale with the gap between the two ratings, so system size and hours are already inside the number you enter.
See full breakdown
SEER is the seasonal energy efficiency ratio of an AC or heat pump: cooling delivered over a season divided by the electricity used, so a higher number means a smaller power bill. Since January 2023, new units carry a SEER2 rating from a tougher test that reads about 4.5% lower for the same equipment. To work out your savings you need four things: the SEER on your old unit's yellow EnergyGuide label, its size (36,000 BTU is 3 tons), your power price in cents per kWh and how many hours a year it runs in your climate.
How to calculate SEER savings
Every SEER savings calculator runs the same short chain: capacity times hours gives the cooling a house needs, dividing by SEER turns that into electricity, and the power rate turns electricity into dollars. Do it for both units and the difference is your saving.
| Compare two systems from size, rating, rate and hours | Start from your cooling bill from what you pay now | |
|---|---|---|
| Power used | kWh a year = BTU/h × annual hours ÷ SEER ÷ 1,000, worked out for the old unit and the new one | Not needed: the bill already holds the old unit's power use |
| SEER2 rating | SEER2 ÷ 0.955 gives the old style SEER, so both units sit on one scale | Same conversion |
| Running cost | kWh a year × your rate in dollars per kWh | New cost = current cost × old SEER ÷ new SEER |
| Savings | Old running cost minus new running cost, then × years | Current cost minus new cost, then × years |
| Payback | Upgrade price ÷ yearly savings = years until the new unit has paid for itself in lower bills | |
Worked example: 3 ton AC, 10 SEER now, new 16 SEER2 unit, 18.31¢ per kWh, 1,320 hours a year
The 36,000 BTU/h comes from 3 tons × 12,000. The old unit's EER is roughly 9.2 and the new one's about 13.2, using EER = 1.12 × SEER minus 0.02 × SEER².
When to use this SEER calculator
Run it whenever an efficiency rating is about to turn into money, whether that is a purchase, a bill or a proposal.
- Comparing HVAC systems before buying: put two quotes side by side by entering each unit's SEER2. The gap in yearly running cost tells you whether the pricier unit earns its price back while you still own the house.
- Pricing an upgrade to a higher SEER unit: enter what the upgrade costs and read the payback in years.
- Budgeting household utility costs: the current unit's yearly cooling cost is a fair line to carry into a home budget, and the cooling bill tab works backward from the figure you already pay.
- Old unit, new rules: anything rated before 2023 is in SEER, anything after in SEER2, and this calculator converts between them.
- Benchmarking against efficiency standards: check a unit against the federal minimums for your region in the table below. A 10 SEER system put in before 2006 sits well under today's floor of 13.4 SEER2 in the North and 14.3 SEER2 in the South.
- HVAC service and maintenance proposals: show a member customer what their aging unit costs to run each summer.
- Heat pump replacements: the cooling side works the same way for a heat pump as for a central AC.
- Sales calls for HVAC contractors: use the SEER savings calculator on a tablet at the kitchen table. Print the result or copy the link into the proposal, so the homeowner sees the yearly savings and the payback for the exact unit you quoted.
What is the difference between SEER and SEER2?
Both divide a season's cooling by the electricity used. SEER2 took over on January 1, 2023 and tests units against higher external static pressure, closer to real ductwork, so the same unit scores about 4.5% lower on the new scale.
| Old SEER rating | About the same unit in SEER2 | EER, rough |
|---|---|---|
| 13 SEER | 12.4 SEER2 | 11.2 |
| 14 SEER | 13.4 SEER2 | 11.8 |
| 15 SEER | 14.3 SEER2 | 12.3 |
| 16 SEER | 15.3 SEER2 | 12.8 |
| 18 SEER | 17.2 SEER2 | 13.7 |
| 20 SEER | 19.1 SEER2 | 14.4 |
| 22 SEER | 21.0 SEER2 | 15.0 |
SEER2 = SEER × 0.955. EER from EER = 1.12 × SEER minus 0.02 × SEER², a quick conversion that drifts in very hot or very mild climates.
What is the minimum SEER2 rating allowed today?
Since January 1, 2023, a new split system AC must reach 13.4 SEER2 in the North and 14.3 SEER2 in the Southeast and Southwest. A unit you already own can keep running; the rule covers what contractors install.
| System type | North | Southeast | Southwest |
|---|---|---|---|
| Split AC under 45,000 BTU/h | 14 SEER / 13.4 SEER2 | 15 SEER / 14.3 SEER2 | 15 SEER / 14.3 SEER2 |
| Split AC 45,000 BTU/h and up | 14 SEER / 13.4 SEER2 | 14.5 SEER / 13.8 SEER2 | 14.5 SEER / 13.8 SEER2 |
| Split heat pump | 15 SEER / 14.3 SEER2 and 7.5 HSPF2, every region | ||
| Packaged AC | 14 SEER / 13.4 SEER2, every region | ||
| Packaged heat pump | 14 SEER / 13.4 SEER2 and 6.7 HSPF2, every region | ||
Southeast: Alabama, Arkansas, Delaware, Florida, Georgia, Hawaii, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and DC. Southwest: Arizona, California, Nevada and New Mexico. Every other state is North. In the Southwest a split AC also has to meet an EER2 floor of 9.8 to 11.7.
How much will a 16 SEER unit save me?
Swapping a 10 SEER AC for a 16 SEER2 unit cuts cooling electricity by about 40%. On a 3 ton system running 1,320 hours a year at the US average rate, that is $351 a year.
| New unit | Power a year | Cost a year | Saved a year | Less power | Saved in 15 years |
|---|---|---|---|---|---|
| Keep the 10 SEER | 4,752 kWh | $870 | $0 | 0% | $0 |
| 13.4 SEER2 | 3,387 kWh | $620 | $250 | 28.7% | $3,750 |
| 14.3 SEER2 | 3,174 kWh | $581 | $289 | 33.2% | $4,335 |
| 15.2 SEER2 | 2,986 kWh | $547 | $323 | 37.2% | $4,851 |
| 16 SEER2 | 2,836 kWh | $519 | $351 | 40.3% | $5,261 |
| 18 SEER2 | 2,521 kWh | $462 | $408 | 46.9% | $6,127 |
| 20 SEER2 | 2,269 kWh | $415 | $455 | 52.3% | $6,819 |
| 22 SEER2 | 2,063 kWh | $378 | $492 | 56.6% | $7,386 |
3 ton system, 1,320 cooling hours a year, 18.31¢ per kWh. Each step up saves less than the one before, because the savings follow 1 minus old SEER ÷ new SEER.
What do homes pay for electricity in each state?
The average US home paid 18.31¢ per kWh in July 2026. Every cent on your rate scales the savings by the same share, so the same upgrade is worth almost four times as much in Hawaii as in Louisiana.
Residential electricity rate by state, July 2026
| State | Cents per kWh | Saved a year, 10 SEER to 16 SEER2 |
|---|---|---|
| Alabama | 16.40¢ | $314 |
| Alaska | 28.83¢ | $552 |
| Arizona | 15.38¢ | $295 |
| Arkansas | 14.33¢ | $275 |
| California | 33.61¢ | $644 |
| Colorado | 17.00¢ | $326 |
| Connecticut | 24.16¢ | $463 |
| Delaware | 18.48¢ | $354 |
| District of Columbia | 25.21¢ | $483 |
| Florida | 15.03¢ | $288 |
| Georgia | 16.27¢ | $312 |
| Hawaii | 48.00¢ | $920 |
| Idaho | 13.73¢ | $263 |
| Illinois | 19.22¢ | $368 |
| Indiana | 16.73¢ | $320 |
| Iowa | 15.99¢ | $306 |
| Kansas | 15.27¢ | $293 |
| Kentucky | 13.81¢ | $265 |
| Louisiana | 12.72¢ | $244 |
| Maine | 32.41¢ | $621 |
| Maryland | 21.41¢ | $410 |
| Massachusetts | 30.49¢ | $584 |
| Michigan | 23.05¢ | $442 |
| Minnesota | 17.45¢ | $334 |
| Mississippi | 14.54¢ | $279 |
| Missouri | 16.09¢ | $308 |
| Montana | 14.99¢ | $287 |
| Nebraska | 13.78¢ | $264 |
| Nevada | 12.77¢ | $245 |
| New Hampshire | 26.60¢ | $510 |
| New Jersey | 25.19¢ | $483 |
| New Mexico | 16.09¢ | $308 |
| New York | 29.90¢ | $573 |
| North Carolina | 15.16¢ | $290 |
| North Dakota | 13.41¢ | $257 |
| Ohio | 19.45¢ | $373 |
| Oklahoma | 14.35¢ | $275 |
| Oregon | 15.97¢ | $306 |
| Pennsylvania | 21.72¢ | $416 |
| Rhode Island | 28.29¢ | $542 |
| South Carolina | 15.47¢ | $296 |
| South Dakota | 15.37¢ | $294 |
| Tennessee | 13.71¢ | $263 |
| Texas | 15.88¢ | $304 |
| Utah | 13.12¢ | $251 |
| Vermont | 23.75¢ | $455 |
| Virginia | 17.55¢ | $336 |
| Washington | 14.71¢ | $282 |
| West Virginia | 15.78¢ | $302 |
| Wisconsin | 19.06¢ | $365 |
| Wyoming | 14.36¢ | $275 |
Savings column: 3 ton system, 1,320 hours a year. Picking your state in the calculator fills in its rate, and you can type the rate from your own bill instead.
How many hours a year does an air conditioner run?
About 1,320 hours a year is the US average, but climate swings it from a few hundred in the Pacific Northwest to over 4,000 in South Florida. Hours count as much as the rating, so pick the nearest city in the calculator.
| City | Cooling hours a year | 3 ton, 10 SEER: cost a year | Saved with 16 SEER2 |
|---|---|---|---|
| United States average | 1,320 | $870 | $351 |
| Seattle, WA | 283 | $187 | $75 |
| Denver, CO | 716 | $472 | $190 |
| Minneapolis, MN | 823 | $542 | $219 |
| Boston, MA | 824 | $543 | $219 |
| Chicago, IL | 1,040 | $686 | $276 |
| New York, NY | 1,151 | $759 | $306 |
| Atlanta, GA | 1,715 | $1,130 | $456 |
| Dallas, TX | 2,116 | $1,395 | $562 |
| Houston, TX | 2,566 | $1,691 | $682 |
| Phoenix, AZ | 2,570 | $1,694 | $683 |
| Tampa, FL | 3,293 | $2,171 | $875 |
| Miami, FL | 4,259 | $2,807 | $1,132 |
Costs at the US average rate of 18.31¢ per kWh. The calculator holds hours for more than 60 cities across all 50 states.
What affects SEER energy savings the most?
The rating gap sets the share you save. Your power rate, your hours and the size of the system decide how many dollars that share is worth.
| Factor | What changes the savings | Typical effect |
|---|---|---|
| Rating gap | Savings follow 1 minus old SEER ÷ new SEER. The lower the old unit, the bigger the drop. | 10 to 16 SEER2: 40% less power |
| Electricity rate | Dollars saved rise in step with the rate. | 12.72¢ in Louisiana, 48.00¢ in Hawaii |
| Cooling hours | Climate and thermostat habits decide how long the unit runs. A long, hot season multiplies every kWh saved. | 283 hours in Seattle, 4,259 in Miami |
| System size | A bigger unit moves more heat and uses more power, so the same rating gap saves more dollars. | 5 tons saves 5 ÷ 3 of a 3 ton unit |
| SEER or SEER2 label | Comparing an old SEER number with a new SEER2 number without converting understates the new unit. | About 4.5% on the rating |
| Age of the old unit | The federal floor has risen over the years, so older units start from a lower rating. | 8 or 9 SEER is common on old equipment |
| Years kept | Savings stack every summer the new unit runs. Central ACs usually last 15 to 20 years. | $351 a year is $5,261 over 15 years |
What profit margin do HVAC contractors make on replacements?
A typical HVAC business keeps 30% to 40% gross and about 10% net. Well run shops aim for a gross margin of 50% to 55% or more, which works out to roughly 17% to 20% net.
| Margin | Well run shops | Industry average |
|---|---|---|
| Gross profit margin | 50% to 55%+ | 30% to 40% |
| Net profit margin | 17% to 20%+ | About 10% |
Gross margin is what is left of the job price after equipment and labor. Net margin is what stays after trucks, insurance, the office and your own pay, and when net margin drops below 10%, one slow season can wipe out the year. A clear payback figure gives the homeowner a reason to choose the higher efficiency unit, which carries a bigger ticket.
HVAC owners: the homeowner weighing 14 against 18 SEER2 buys from whoever picks up.
A family comparing efficiency upgrades usually calls two or three shops with the same question about payback, often in the evening after running the numbers. If your line rings out, the bigger ticket goes to the next contractor on the list. ServiceAgent answers every one of those calls, books the comfort visit on your calendar and keeps following up on the high efficiency quote by phone and text until the homeowner decides.
Book a free demoFrequently asked questions
Straight answers on SEER, SEER2 and what an efficiency upgrade really saves.
Book a free demoHow accurate is this SEER calculator?
It is accurate for comparing two units, because both are run through the same formula with the same rate and hours. The dollar figures are a planning estimate: how well the system is installed, the state of the ducts, your thermostat setting and a hot or mild summer all move the real bill.
What affects energy savings the most?
The gap between the old and new rating sets the share you save, and going from 10 SEER to 16 SEER2 cuts cooling power by about 40%. Your electricity rate, the hours the unit runs and the size of the system then decide how many dollars that share is worth.
Can I use this for both AC and heat pumps?
Yes for cooling. A heat pump cools exactly like a central AC and carries a SEER or SEER2 rating, so enter it the same way. Its heating efficiency is a separate HSPF2 rating that this calculator does not cover.
Is this SEER savings calculator useful for HVAC businesses?
Yes. Contractors use it during replacement visits to show the yearly savings and payback of the exact unit on the quote, then print the result or send the link with the proposal so the homeowner can check the numbers again later.
Can I customize electricity rates or BTUs?
Yes. Picking a state fills in its average residential rate, but you can type the rate from your own bill. Capacity can be entered in tons or BTU per hour, and the cooling hours can be set from a nearby city or typed in.
Does the estimate include installation or maintenance costs?
No. It works out energy use and running cost only. Enter the installed price of the upgrade in the optional field to see the payback, and budget for maintenance on its own.
Can this be used for both residential and commercial systems?
The math works for any unit with a SEER or SEER2 rating: enter its capacity in BTU per hour and the hours the building actually runs cooling. Check the nameplate first, because some larger commercial equipment is not rated in SEER.
What is better, 19 SEER or 22 SEER?
A 22 SEER unit uses about 13.6% less power than a 19 SEER unit for the same cooling. Whether that is worth the higher price depends on your hours and your rate, so run both ratings through the calculator with the price difference as the upgrade price.
What is the typical SEER rating for a 20 year old air conditioner?
Usually 10 to 13 SEER. Units installed from January 2006 had to reach at least 13 SEER, while those installed between 1992 and 2005 only needed 10. Older equipment often sits at 8 or 9 SEER.
How do I find my SEER rating?
Look for the yellow EnergyGuide label on the side of the outdoor unit. If it is missing or faded, check the air handler indoors, or search the model number from the nameplate to find the rating.
How does this fit into an HVAC company's workflow?
Run the comparison on site, print or link it into the proposal, and let the payback carry the conversation about a higher efficiency unit. ServiceAgent then answers the follow up calls and keeps chasing the open quote so the job does not go quiet.
Leads growth and product marketing for ServiceAgent at SaaS Labs, where he has worked in product marketing since 2020. Writes ServiceAgent's coverage of AI call answering, CRM and home services operations.
NATE certified Master HVAC Technician with 14 years in residential and light commercial HVAC. Former Senior Service Tech at Trane Austin, now reviews HVAC content for ServiceAgent.
Published by ServiceAgent, the AI front office for home service teams. Savings figures are estimates for planning and comparison. Real running costs depend on how well the system is installed and matched, the condition of the ducts, the thermostat setting and the weather in a given year, and they are not guaranteed.