Enter the cost of HVAC before insulation ($), the cost of HVAC after insulation ($), and the cost of insulation ($) into the Return on Insulation Calculator. The calculator will evaluate and display the Return on Insulation. 

Return on Insulation Formula

The following formula is used to calculate the Return on Insulation. 

ROINS = (CBI - CAI) / CI * 100
  • Where ROINS is the Return on Insulation (%)
  • CBI is the cost of HVAC before insulation ($) 
  • CAI is the cost of HVAC after insulation ($) 
  • CI is the cost of insulation ($) 

How to Calculate Return on Insulation?

The following example problems outline how to calculate Return on Insulation.

Example Problem #1

  1. First, determine the cost of HVAC before insulation ($).
    • The cost of HVAC before insulation ($) is calculated to be : 1000.
  2. Next, determine the cost of HVAC after insulation ($).
    • The cost of HVAC after insulation ($) is measured to be: 500.
  3. Next, determine the cost of insulation ($).
    • The cost of insulation ($) is found to be: 2,000.
  4. Finally, calculate the Return on Insulation using the formula above: 

ROINS = (CBI – CAI) / CI * 100

The values given above are inserted into the equation below and the solution is calculated:

ROINS = (1000 – 500) / 2,000 * 100 = 25.00 (%)


FAQ

What factors can affect the cost of HVAC before and after insulation?

The cost of HVAC before and after insulation can be influenced by several factors including the size of the area being heated or cooled, the efficiency of the HVAC system, local climate conditions, and the quality of the building’s existing insulation. Additionally, changes in energy prices can also have an impact.

How often should insulation be updated or replaced to maintain optimal ROI?

Insulation should be checked periodically for signs of wear and tear, such as dampness, mold, or physical damage. While there’s no set timeline for replacement, it’s generally recommended to assess insulation every 5 to 10 years. Upgrading insulation when necessary can help maintain or improve the return on insulation by ensuring energy efficiency is maximized.

Are there any government incentives or rebates for improving insulation in homes or businesses?

Many governments offer incentives or rebates for energy efficiency improvements, including upgrading insulation. These programs can vary by location and may change over time. It’s advisable to check with local government agencies or energy providers for the most current information on available incentives or rebates for insulation improvements.