8A-i

APPENDIX 8-A. USER INSTRUCTIONS FOR LIFE-CYCLE COST AND 

PAYBACK PERIOD SPREADSHEETS

TABLE OF CONTENTS

8-A.1 DEFINITIONS .................................................................................................. 8-A-1

8-A.2 BASIC INSTRUCTIONS .................................................................................. 8-A-3
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APPENDIX 8-A. USER INSTRUCTIONS FOR LIFE-CYCLE COST AND PAYBACK 

PERIOD SPREADSHEETS

8-A.1 DEFINITIONS

The interested reader can examine and reproduce detailed results of the U.S. Department 

of Energy’s (DOE’s) life-cycle cost (LCC) and payback period (PBP) analysis for residential 

clothes washers by using Microsoft Excel spreadsheets available on DOE’s website at

To fully execute the spreadsheets requires both Microsoft Excel and Crystal Ball software. Both 

applications are commercially available. Crystal Ball is available at

http://www1.eere.energy.gov/buildings/appliance_standards/residential/clothes_washers.html. 

www.decisioneering.com. 

The latest version of the workbook, which is posted on the DOE website, was tested 

using Microsoft Excel 2007. The LCC and PBP workbook for residential clothes washers 

comprises the following worksheets.

Statistics Presents a statistical summary of the simulation runs performed: 

the range in LCC savings and PBPs; retail purchase price; total 

installed cost; total operating costs over the product lifetime 

(discounted); annual electricity, gas, and oil use; annual water use;

and household characteristics. The worksheet provides minimum, 

maximum, and average values, along with 5th, 25th, 50th, 75th, and 

95th percentile values.

Summary Presents the results of an analysis in terms of average LCC, LCC

savings, and median, average, and undefined PBP for both frontand top-loading washers. A table includes, for each efficiency level

considered, installed price; lifetime operating cost; LCC; average 

savings; and the percentage of households that would incur a net 

cost, no impact, or net savings from each standard level. The user 

can stipulate three parameters for a simulation run: whether the 

AEO energy price trend reflects an economic case that is reference, 

low-growth, or high-growth (reference is default); the year, from 

2014–2018, at which to begin the calculation of LCC and PBP 

(2015 is default); and the number of simulation runs to be 

performed within a range of 100–50,000 (10,000 is default). 

LCC & Payback Lists the input values used to calculate LCC and PBP. Many values 

were derived from data from sampled RECS households. 

Parameters include fuel type for water heating and clothes drying;

annual numbers of washer and dryer loads; product lifetime; the 

discount rate applied to costs and savings; energy and water prices; 

the base-case efficiency distribution; product price and total 

installed cost; and energy and water use. The result is annual and 
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cumulative cash flow for both front- and top-loading clothes 

washers operating at each efficiency level.

RECS Samples Presents the data from the 299 RECS households DOE sampled for

front-loading machines and the 3,311 sampled for top-loading 

models. Identifies the parameters exported to (1) the LCC and PBP 

analysis (water heating and dryer fuel and price, numbers of 

washer and dryer loads per year); (2) product prices; (3) energy 

and water prices; and (4) discount rate (whether new or 

replacement unit). 

Energy & Water Use Contains per-cycle energy and water use data at each efficiency 

level broken down into washer machine energy use, dryer energy 

use (gas or electric); water heating energy use (electric, gas, or oil);

and both total and hot water use. Identifies the parameters exported 

to the LCC and PBP analysis.

Base-Case Efficiency Gives the market shares for efficiency levels in the base case.

Distribution

Equipment Prices Develops total installed cost for clothes washers in 2010$. Gives 

baseline and incremental manufacturer costs, retail price, sales tax, 

and installation cost for both product classes and each efficiency 

level. Includes the assumptions used about mark-ups and sales tax.

Energy & Water Prices Contains the regional prices in 2010$ for electricity, gas, oil, and 

water used in the LCC and PBP analysis.

Energy Price Trends Displays the trends in energy prices for electricity, gas, and

distillate for 2008–2045 under the reference, high, and low

economic growth scenarios from AEO 2010.

Water Price Trend Contains the trend for water prices for 2011–2045 based on the 

consumer price index (CPI) 1981–2010

Discount Rate Presents data used to develop average real discount rates and a 

distribution of discount rates for various types of household debt 

and equity used to purchase products installed in new homes and 

replacement products. Appendix 8D describes development of 

discount rates in detail.

Forecast Cells Gives details regarding base-case efficiency distributions for both 

classes of clothes washers. Median, minimum, maximum, and 

average values are given, along with 5th, 25th, 50th, 75th, and 95th

percentile values. Included are product prices and details of the 
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LCC and PBP (LCC savings in terms of money, energy, and water 

and the percentages of households that would experience a net 

cost, no impact, or net savings from each efficiency level).

Lifetime Presents the average lifetime, in years, for front- and top-loading 

clothes washers (14.2), the Weibull parameters used for the 

survival function, and a graph of the Weibull retirement function

for residential clothes washers.

8-A.2 BASIC INSTRUCTIONS

Basic instructions for operating the LCC spreadsheet are provided below.

1. After downloading the LCC file from DOE’s website, use Microsoft Excel to open 

it. At the bottom of the workbook, click on the tab for the sheet labeled Summary. 

2. Use Excel’s “View/Zoom” command in the top menu bar to change the size of the

display so that it fits your monitor.

3. Use the graphical interface in the spreadsheet to choose parameters or enter data. 

You can change the default choices for the three inputs listed under "User Input" 

(energy price trend, start year, and number of simulation runs). To change a default 

input, select the desired value from the drop-down choices by the input box.

4. After selecting the desired parameters, click the “Run” button. The spreadsheet will 

minimize until the simulation is complete, and will then re-open with the updated 

results.