A reproducible example
Option A costs $800 installed and uses 600 kWh/year. B costs $1,100 installed and uses 350 kWh/year. Both have a $40 annual upkeep allowance, a $200 repair allowance over the whole period and zero assumed resale value. At 25 cents/kWh over ten years, A costs $2,900 and B costs $2,575. B costs $325 less overall despite its $300 higher purchase price.
These are invented comparison inputs, not tested appliances. At 12 cents/kWh, the same two options both cost $2,120. Changing the time horizon or the relative repair costs can change the result again. Read the full appliance premium analysis.
Use comparable inputs
Include delivery, installation, taxes and disposal in upfront cost. Add recurring filters and service fees in the appropriate fields. Enter a repair allowance once, either annualized as upkeep or as a one-time total. Do not enter it in both places.
The FTC explains that EnergyGuide operating costs use standardized assumptions. Use the label's annual kWh with your local price instead of copying its dollar estimate. Product use, size and capacity should be comparable.
Limits that matter
Every year uses the same prices. There is no inflation, discounted cash flow, financing, probability of failure or automatic replacement. Resale value is a user assumption and may be zero. For purchases with different lifetimes, build a complete replacement budget for both sides over one common period.
For vehicle financing use the car payment calculator. For solar tariff differences use the solar payback calculator. Our methodology explains how published facts differ from scenario assumptions.