How much does an LED bulb save compared to incandescent?

An LED equivalent to a 60W incandescent typically saves about $8-$9 a year per bulb at US average rates, and lasts 15-25 times longer, so the combined electricity and replacement-bulb savings are substantial over a decade.

How long do LED bulbs actually last?

Good-quality LED bulbs are typically rated for 15,000-25,000 hours, compared with about 1,000 hours for incandescent and 2,000-3,000 hours for halogen, meaning an LED used a few hours a day can last 15-20 years.

Is it worth replacing halogen bulbs with LED?

Yes; halogen only modestly improves on incandescent efficiency, so switching from halogen to LED still saves roughly 75-80% of lighting electricity per bulb, with a typical payback period well under a year.

Why do LED bulbs cost more upfront?

LED bulbs contain semiconductor components and driver electronics that cost more to manufacture than a simple filament, but the price has fallen sharply over the past decade and the running-cost savings recover the difference within months.

Do LED bulbs work with dimmer switches?

Many do, but not all; check the packaging for 'dimmable' LED bulbs and, for older dimmer switches, verify compatibility, since some dimmers designed for incandescent loads can cause flickering with certain LED models.

Efficiency

LED vs Incandescent vs Halogen: Lighting Cost & Payback

A single LED bulb producing the same light as a 60W incandescent typically costs about $1-$2 a year to run at 3 hours/day and US average rates, versus roughly $7-$9 for the incandescent and $5-$7 for an equivalent halogen. Swapping a whole home's bulbs to LED commonly saves $80-$150 a year in the US and £60-£100 in the UK.

Light bulbs are the clearest possible illustration of how a small wattage difference, repeated over thousands of hours a year across a whole house, turns into a meaningful line on the electricity bill. A traditional incandescent bulb wastes roughly 90% of its electricity as heat rather than light; a halogen improves on that only modestly; an LED wastes very little, converting most of its electricity directly into visible light. This guide compares the three technologies head-to-head on running cost, bulb price, lifespan, and how quickly an LED swap pays for itself, using a typical household lighting load as the reference point.

Same brightness, very different wattage

Light output is measured in lumens, and the useful comparison is wattage needed to produce the same lumens, not wattage alone. To match the roughly 800 lumens of a traditional 60W incandescent bulb, a halogen equivalent needs about 42-45W, while an LED needs only about 8-10W. For the brighter 100W incandescent equivalent at roughly 1,600 lumens, halogen needs about 70-72W and LED needs only 14-17W. That gap exists because incandescent and halogen bulbs produce light as a by-product of heating a filament, while an LED generates light through a semiconductor process that produces comparatively little waste heat.

Annual running cost per bulb

At an average US household usage of about 3 hours a day, a 60W incandescent uses roughly 65.7 kWh a year, about $10.50 at $0.16/kWh; the halogen equivalent at 43W uses about 47 kWh, roughly $7.50; and the 9W LED equivalent uses just under 10 kWh, about $1.60. Scale that to a house with 30 bulbs replaced from incandescent to LED and the running-cost saving alone is roughly $265 a year in the US, or proportionally similar in the UK using 26p/kWh, before even accounting for the dramatically longer lifespan of the LED reducing replacement bulb purchases.

Lifespan changes the real cost per year, not just electricity

A typical incandescent bulb lasts around 1,000 hours, a halogen around 2,000-3,000 hours, and a good-quality LED commonly lasts 15,000-25,000 hours or more, roughly 15-25 times longer than the incandescent it replaces. At 3 hours a day, an incandescent needs replacing roughly once a year, a halogen every 2-3 years, and an LED only once every 15-20 years. Even though an LED bulb typically costs more upfront, often $2-$5 versus $1-$2 for an incandescent, the total cost of ownership, electricity plus replacement bulbs over a 15-year period, overwhelmingly favours the LED once you account for how many incandescent bulbs you would otherwise buy and discard.

Payback period on a full-home LED switch

If a household spends $60-$150 replacing 20-30 incandescent or halogen bulbs with LEDs, and the running-cost saving is $80-$150 a year as shown above, the payback period for the whole project typically lands somewhere between four and twelve months, making LED replacement one of the fastest-payback home efficiency upgrades available, faster than almost any insulation, heating, or appliance investment. Bulbs in fixtures used many hours a day, hallway and porch lights left on for security, or fixtures that are hard to access for replacement, deliver the fastest and most valuable payback and should generally be swapped first.

Heat output: an overlooked side effect

Because incandescent and halogen bulbs waste most of their energy as heat, a room lit with several of them can measurably warm up, which is a mild extra cost in summer (working against air conditioning) and a mild extra benefit in winter (working with the heating system), though the effect is small compared with the direct electricity savings. LEDs run cool enough to touch shortly after switching off, which also reduces fire risk in enclosed fixtures and makes them safer for use in tight spaces like closets or under cabinets.

Getting the comparison right for your own home

Match lumens, not watts, when buying LED replacements to avoid ending up with dimmer rooms
Prioritise the bulbs used most hours per day, since those deliver the fastest payback
Choose a colour temperature (measured in Kelvin) that matches your preference; 2700K-3000K mimics traditional warm incandescent light
Check for dimmer compatibility before buying LEDs for dimmable fixtures, since not all LEDs work with older dimmer switches

The bottom line

Across essentially every realistic household scenario, LED lighting wins decisively on running cost, lifespan, and total cost of ownership, and the only remaining reason to keep incandescent or halogen bulbs is aesthetic preference for very specific fixtures or a stock of bulbs already owned. Use the calculator on this site with your own bulb count, wattage, and daily hours of use to see exactly how much a full-home LED switch would save on your specific electricity rate.

Annual running cost per bulb at 3 hours/day, $0.16/kWh (US) and 26p/kWh (UK)

Bulb type	Wattage (~800 lumens)	Annual kWh	Annual cost (US)	Annual cost (UK)
Incandescent	60 W	65.7	$10.50	£17.10
Halogen	43 W	47.1	$7.50	£12.20
CFL (compact fluorescent)	14 W	15.3	$2.40	£4.00
LED	9 W	9.9	$1.60	£2.60
30-bulb whole-home LED swap (vs incandescent)	—	1,674 saved	$268 saved/yr	£436 saved/yr

Frequently asked questions

How much does an LED bulb save compared to incandescent?: An LED equivalent to a 60W incandescent typically saves about $8-$9 a year per bulb at US average rates, and lasts 15-25 times longer, so the combined electricity and replacement-bulb savings are substantial over a decade.
How long do LED bulbs actually last?: Good-quality LED bulbs are typically rated for 15,000-25,000 hours, compared with about 1,000 hours for incandescent and 2,000-3,000 hours for halogen, meaning an LED used a few hours a day can last 15-20 years.
Is it worth replacing halogen bulbs with LED?: Yes; halogen only modestly improves on incandescent efficiency, so switching from halogen to LED still saves roughly 75-80% of lighting electricity per bulb, with a typical payback period well under a year.
Why do LED bulbs cost more upfront?: LED bulbs contain semiconductor components and driver electronics that cost more to manufacture than a simple filament, but the price has fallen sharply over the past decade and the running-cost savings recover the difference within months.
Do LED bulbs work with dimmer switches?: Many do, but not all; check the packaging for 'dimmable' LED bulbs and, for older dimmer switches, verify compatibility, since some dimmers designed for incandescent loads can cause flickering with certain LED models.

Key takeaways

An LED costs about $1-$2 a year to run versus $7-$9 for an incandescent of equal brightness
LEDs last 15-25 times longer than incandescent bulbs, cutting replacement costs dramatically
A whole-home LED swap typically pays back its upfront cost in 4-12 months
Match lumens, not watts, when choosing an LED replacement bulb
Prioritise bulbs used the most hours per day for the fastest savings payback

Run the numbers for your own home

Enter your local rate, standing charge and appliance hours in the free electricity cost calculator to see your own monthly estimate.

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