Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Annual electricity cost to run compressor
$19,923
Estimated annual cost of leaks
$4,981
Potential savings from leak repair program
$3,985
Average power draw
39.5
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How to use this
- 1Enter compressor motor size (hp).
- 2Enter average load factor (%).
- 3Enter run hours per year (hrs).
- 4Enter electricity rate ($/kWh).
- 5Enter motor efficiency (%).
- 6Enter estimated system leak rate (%).
- 7Read your annual electricity cost to run compressor on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
Compressed air is often called the most expensive utility in a plant because so much energy is lost between the compressor and the point of use — typical industrial compressed air systems are only 10-15% efficient overall from electrical input to useful work delivered at the tool. This calculator estimates the annual electricity cost to run a compressor based on motor horsepower, load factor, and run hours, then separately estimates the cost of air leaks, which studies consistently show waste 20-30% of compressed air output in a typical unaudited plant. A single 1/8-inch leak at 100 PSI can cost $1,200-1,800 per year in wasted electricity alone if the compressor runs continuously, which is why leak surveys are one of the highest-ROI maintenance activities available in most manufacturing facilities.
Worked example
Using the values the calculator loads with:
Inputs
- Compressor motor size: 75 hp
- Average load factor: 65 %
- Run hours per year: 4200 hrs
- Electricity rate: 0.12 $/kWh
- Motor efficiency: 92 %
- Estimated system leak rate: 25 %
Results
- Annual electricity cost to run compressor: $19,923
- Estimated annual cost of leaks: $4,981
- Potential savings from leak repair program: $3,985
- Average power draw: 39.5
What each field means
Inputs
- Compressor motor size (hp)
- The compressor motor size used in the calculation, measured in hp. Starts at 75 hp so you have a working example on load.
- Average load factor (%)
- The average load factor used in the calculation, measured in %. Starts at 65 % so you have a working example on load. Accepted range: 5–100 %.
- Run hours per year (hrs)
- The run hours per year used in the calculation, measured in hrs. Starts at 4200 hrs so you have a working example on load.
- Electricity rate ($/kWh)
- The electricity rate used in the calculation, measured in $/kWh. Starts at 0.12 $/kWh so you have a working example on load.
- Motor efficiency (%)
- The motor efficiency used in the calculation, measured in %. Starts at 92 % so you have a working example on load. Accepted range: 50–100 %.
- Estimated system leak rate (%)
- The estimated system leak rate used in the calculation, measured in %. Starts at 25 % so you have a working example on load. Accepted range: 0–60 %.
Results
- Annual electricity cost to run compressor
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Estimated annual cost of leaks
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Potential savings from leak repair program
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Average power draw
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How do I estimate my leak percentage without a formal audit?
Run the compressor during a period when no equipment is actively using air (weekend, overnight) and measure how often it cycles on to maintain pressure — if it's cycling frequently with nothing running, that's pure leak load. Industry studies commonly find 20-30% leak rates in plants that haven't run a leak-detection program; well-maintained systems with regular ultrasonic leak surveys can get below 10%.
What's a realistic load factor for load factor input?
Load factor represents average output as a percentage of full compressor capacity — most plants don't run a compressor at 100% output continuously. 50-70% is typical for a right-sized system with normal demand variation; running consistently near 100% suggests the compressor is undersized for demand, while running well under 40% suggests it's oversized.
Why is compressed air called an expensive utility?
Because electric-to-compressed-air-to-useful-work conversion loses energy at every stage — compression heat, distribution leaks, pressure drop, and inefficient end-use devices. Only about 10-15% of the electrical energy input ends up as usable work at the tool, meaning generating compressed air costs roughly 7-10x the raw electricity price per unit of actual work delivered.
What ROI does a leak repair program typically deliver?
Leak surveys and repairs are consistently one of the fastest-payback projects in a plant, often paying for the ultrasonic detection equipment and technician time within the first few months just from the electricity saved, especially in plants that haven't done a survey in several years.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Compressed Air Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/compressed-air-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/compressed-air-cost" target="_blank" rel="noopener">Compressed Air Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Compressed Air Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/compressed-air-cost) (2026).