Battery Storage ROI Calculator

Estimate battery payback from usable capacity, cycle count and price arbitrage.

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Battery Storage ROI Calculator

Enter capacity, cost, cycles and the peak/off-peak price gap.

Payback period
β€”
Enter values above
Annual saving
β€”
Net annual benefit
β€”
Return over the period
β€”
Total saving over the period
β€”
Usable energy per cycle
β€”

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Battery capacity (kWh)10
Installed cost ($)5000
Cycles per year300
Round-trip efficiency (%)90
Peak vs off-peak spread ($/kWh)0.25
Annual maintenance ($)50
Years to evaluate10
ResultValue
Payback period8 years
Annual saving$675.00
Net annual benefit$625.00
Return over the period25.00%
Total saving over the period$6,750.00
Usable energy per cycle9 kWh

Values shown are produced by this page in your browser; change any input to update them.

How to use the Battery Storage ROI Calculator

  1. Battery capacity (kWh) β€” default 10
  2. Installed cost ($) β€” default 5000
  3. Cycles per year β€” default 300
  4. Round-trip efficiency (%) β€” default 90
  5. Peak vs off-peak spread ($/kWh) β€” default 0.25
  6. Annual maintenance ($) β€” default 50
  7. Years to evaluate β€” default 10
  8. Press Calculate to update the results instantly.

Frequently asked questions

You need a peak-to-off-peak spread of roughly $0.15–$0.30 per kWh for a battery to pay back inside its warranty period on arbitrage alone. Adding solar self-consumption improves the case significantly.
A 90% efficiency figure means you only get back 90% of the energy you put in, so always calculate savings on usable energy rather than nameplate capacity.
Yes. For commercial users on a demand tariff, batteries can shave peak demand charges, which often dwarfs energy arbitrage. This calculator models energy arbitrage only.

Sources & references