The useful answerAn EnergyGuide label helps compare similar appliances under stated assumptions. Its annual dollar amount is an estimate, and it may use a different electricity price or schedule from yours.

Make sure the labels describe comparable appliances

Start with the product type and exact model number. Check the size or capacity and other information used to define the comparison group. A low annual cost on a small appliance is not proof that it can replace a larger one while doing the same job.

The FTC explains the label’s role in comparing energy use and estimated costs. Use it as structured evidence when building a shortlist. Keep a copy of the relevant labels so that a later sale listing or model-name variation does not silently change the comparison.

Translate energy into your own tariff

When annual kWh is available, multiply it by your applicable electricity price. Suppose two hypothetical, suitable models show 400 and 300 kWh per year. At $0.18/kWh, their annual energy costs are $72 and $54. The difference is $18 per year.

At $0.30/kWh, the same figures become $120 and $90, a $30 difference. The appliances did not change; the tariff assumption did. These invented numbers illustrate how to personalize the energy estimate, not actual labels from tested products.

Do not confuse a yearly estimate with your schedule

Read the operating assumptions on the label or in its supporting material. If a seasonal appliance’s annual estimate represents a specific usage pattern, multiplying it by your own hours again would mix two methods.

Choose one approach: compare the standardized annual figures on their stated basis, or build a separate scenario from measured or otherwise appropriate average power and your schedule. You can show both, but name them clearly. A customized projection remains a projection rather than a replacement test certification.

Put the energy difference beside the purchase premium

In the example, a $90 premium for the 300 kWh model takes five years to recover at an $18 annual energy saving. At a $30 annual saving, it takes three years. Delivery, repairs and other costs can change the outcome.

ENERGY STAR certification and an EnergyGuide label serve different purposes; the FTC’s explanation helps distinguish them. Neither is a promise that your bill will match a printed dollar figure. Use the label to ask better questions about suitability and use, then retain those assumptions next to the ownership-cost comparison.

Separate the label evidence from your own calculation

Reading aid — not a reproduction of an official label
Information to findHow to use it
Model and comparable capacityCheck that both options can perform the intended job
Annual energy, where providedKeep kWh/year separate from electrical watts
Estimated annual dollarsCheck the rate and operating assumptions behind the figure
Your own tariffMultiply annual kWh by your rate to personalize the energy price

The FTC explains the EnergyGuide label and why its dollar estimate can differ from your bill. If the label does not provide annual kWh, do not manufacture it from a different unit or rating.

Compare the 400 vs. 300 kWh/year example. With hypothetical purchase prices of $300 and $390, electricity plus purchase ties at $660 after five years at $0.18/kWh. This excludes installation, maintenance and changes in use or prices.

EnergyGuide comparison worksheet

Download the CSV and fill it in using a spreadsheet app. Blank fields are yours to complete; supplied numbers are labeled examples. Save your own copy after editing.

Download worksheet (CSV)

Choose your next step

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Sources & further reading

Numerical examples are illustrative unless explicitly described as measured. This guide does not claim hands-on product testing. Read the methodology and editorial disclosure.