Blown in Insulation has a very positive impact on energy bills and can quickly pay for itself with energy savings. Upgrading your home’s insulation also offers many other benefits, including enhanced comfort and reduced health risks. Often, homeowners can find rebates and incentives to help offset initial installation costs.

The payback period is the number of years it takes for an energy efficiency measure, such as insulation, to break even with its original cost. It’s calculated by dividing the first cost (the initial installation) by the annual energy savings. Online insulation calculators crunch the numbers and provide estimated payback periods based on your home’s specific details.

Insulation Payback Period Explained: When Savings Add Up

Several factors affect the payback period for insulation: insulation type, climate zone, local energy prices, utility company incentives, and financing options. Investing in moderately priced, premium quality insulation like cellulose results in a much shorter payback period than standard fiberglass batts or EPS.

To calculate your payback period, you’ll need a list of your home’s current insulation type and thickness/amount in its walls and attic, as well as the square footage of the area to be upgraded. You’ll also need a recent utility bill and a quote from an insulation contractor.

The calculator below, based on an equation from the Department of Energy, helps you estimate how long it will take for your energy savings to offset the initial investment in an insulation upgrade. Enter your information in the fields above and click the Calculate button to get an estimate.

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