Electricity • Variable-Speed Drives

Motor VFD Installation Payback Calculator

Estimate the financial case for adding a variable frequency drive by comparing baseline motor input power with a proposed variable-speed operating profile.

Estimate VFD savings

VFD economics

Annual energy saving—
Annual cost saving—
Simple payback—
Baseline annual energy—

How VFD payback is calculated

The baseline input represents electrical power consumed without the proposed drive scenario. The proposed motor-side power is adjusted for the VFD's stated efficiency to estimate power drawn at the electrical supply.

VFD supply power = Proposed motor-side power ÷ VFD efficiency

Annual energy saving = (Baseline power − VFD supply power) × Savings hours

The calculator then multiplies the annual energy saving by the entered electricity price and adds annual maintenance savings.

Why the savings-hours input matters

Many variable-load applications do not operate at the reduced operating condition all year. Using a percentage of annual hours allows you to model a more realistic duty profile rather than assuming the VFD produces maximum savings continuously.

Application caution

VFD energy savings depend heavily on what the driven equipment actually does when speed changes. A user-entered proposed motor-side power should therefore come from a credible operating model, field measurement or equipment information rather than an assumed percentage reduction.

Not included

FAQs

Does installing a VFD always save energy?

No. The economic benefit depends on the load profile, control method, speed requirement and actual proposed power.

Why include drive efficiency?

A VFD has its own conversion losses, so the electrical input should not simply equal the motor-side power.

Can the proposed power be zero?

Yes mathematically, although a zero-power operating condition normally represents no useful load and should be checked before using it as a project case.

Is payback a guarantee?

No. It is a simple estimate using the assumptions supplied.

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