Below is an explanation of where all the values in the Smart Home ROI & Energy Savings Calculator come from, so you can understand how your savings and return on investment are calculated:

1️⃣ Energy Savings Estimator Values

The calculator estimates monthly and annual energy savings based on real-world studies and averages from Energy Star, the U.S. Department of Energy, and smart device manufacturers.

Device	Annual Savings ($)	How the Savings Are Calculated
Smart Thermostat	~$150	Saves 10-15% on heating/cooling costs per DOE estimates.
Smart Lighting (10 bulbs)	~$50	LED smart bulbs use ~75% less energy than incandescent bulbs.
Smart Plugs (5 units)	~$30	Cuts "phantom power" loss from standby electronics.
Smart Appliances	~$100	More efficient than standard models (e.g., fridges, washers).
Smart Water Heater	~$100	Saves 10-20% on water heating by optimizing usage.
Smart Power Strips	~$40	Prevents unused devices from drawing power.

🔹 Where do these numbers come from?
These values are based on average industry estimates for energy-efficient devices compared to non-smart versions.

🔹 How do we calculate total savings?
The calculator adds up the savings for each device type the user selects and shows estimated monthly and yearly savings.

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2️⃣ Smart Home ROI Calculator Values

This calculator takes energy savings, time savings, and property value increases into account to determine a Return on Investment (ROI).

Value	How It’s Calculated
Initial Investment ($)	This is the user's upfront cost for smart home upgrades (entered manually).
Hourly Value of Your Time ($/hr)	Users estimate how much their time is worth, helping quantify the value of automation.
Annual Energy Savings ($)	Taken from the Energy Savings Estimator above.
Annual Time Savings ($)	Assumes 5 hours per month saved due to smart automation, multiplied by the user’s hourly rate.
Property Value Increase (%)	Estimated home value increase from smart upgrades (~5%, but adjustable by the user).
Home Value ($)	The user enters their current home value.

🔹 Where do the time savings numbers come from?
Studies suggest that home automation saves homeowners an average of 1-2 hours per week by automating repetitive tasks like:

• Adjusting lights, heating, and cooling
• Managing security systems
• Controlling appliances remotely
• Voice-controlled assistants handling reminders & scheduling

We assume 5 hours per month as a conservative estimate and multiply this by the user's hourly rate.

🔹 How is the property value increase estimated?
According to Zillow & Realtor.com, smart home upgrades can increase property value by 3-5% due to higher demand for energy-efficient homes.

• The calculator multiplies the user’s home value by their selected percentage to estimate the potential increase.

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3️⃣ ROI & Payback Period Calculations

After calculating the savings, the calculator estimates:

• Total Annual Savings = (Annual Energy Savings) + (Annual Time Savings)
• 10-Year ROI (%) = (Total Annual Savings×10)+ Property Value GainInitial Investment× 100\frac{(\text{Total Annual Savings} \times 10) + \text{Property Value Gain}}{\text{Initial Investment}} \times 100
• Payback Period (Years) = Initial InvestmentTotal Annual Savings\ frac{\text{Initial Investment}}{\text{Total Annual Savings}}

🔹 What does ROI (%) mean?

• If ROI = 150%, it means the user will recoup their investment and gain 1.5x the initial amount over 10 years.

🔹 What does the payback period mean?

• If the payback period is 3.5 years, it means the user will recover their investment within 3.5 years, and all savings beyond that are pure profit.

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📌 How This Helps You?

1. Shows the real-world impact of investing in smart home technology.
2. Helps you make informed financial decisions about automation upgrades.
3. Demonstrates clear ROI for both energy and time savings.