How do you calculate the cost of a compressed air leak?

Multiply the leak flow in CFM by an annual energy cost per leaked CFM, then scale by the share of operating hours the leak is actually live. With 85 CFM at $120/CFM-yr captured 95% of the time, that is $9,690 of avoidable energy per year before you add the $900 repair cost.

What is a good compressed air leak rate for a plant?

Best-in-class facilities hold total leakage under 10% of compressor output; 20-30% is common and signals a neglected system. Any single leak above roughly 30 CFM is worth an immediate work order given the energy it wastes.

Why do small leaks cost so much?

Compressors run nearly continuously, so a leak that seems trivial leaks every hour the plant is energized. At $120 per CFM-yr, even a 5 CFM leak is $600 a year, which is why ultrasonic surveys pay back quickly.

What does 'annual energy cost per leaked CFM' depend on?

It depends on your electricity rate ($/kWh), compressor specific power (kW per 100 CFM), line pressure, and annual run hours. A typical 100 psi, 8,000-hour plant at $0.10/kWh lands near $100-150 per CFM-yr, which is why the default uses $120.

How is operating exposure captured used?

It is the fraction of the year the leak is actually pressurized and leaking. If you depressurize lines on weekends or between shifts, set it below 100%; the default 95% assumes near-continuous operation.

Is it worth fixing a leak that costs $900 to repair?

Almost always. In the worked example the leak wastes $9,690 a year, so a $900 repair pays back in about five weeks and then saves money every year after.

Energy & Sustainability calculator

Compressed Air Leak Cost Calculator

Compressed air is the most expensive utility on most shop floors, and 20-30% of generated air typically bleeds out through unrepaired leaks. This calculator converts your estimated leak flow into the annual electricity it wastes and adds the cost to fix it, giving plant engineers and energy managers a defensible number to justify a leak survey. Maintenance leads use it to rank which leaks to tag first and to build the business case for ultrasonic leak detection programs. Because compressors run thousands of hours a year, even small CFM losses compound into thousands of dollars.

What this calculator does

Estimate annual compressed-air leak cost from leak airflow, electricity cost per CFM, operating exposure, and repair cost.
a maintenance or energy manager needs to prioritize compressed-air leak repairs by cost impact
It computes the avoidable annual energy cost of a compressed air leak (or leak population) plus the one-time repair labor and materials, returning a combined leak budget.

Formula used

Avoidable leak energy cost = estimated leak flow × annual energy cost per leaked CFM × operating exposure captured
Net compressed-air leak cost = avoidable leak energy cost + repair labor and materials cost

Inputs explained

Estimated leak flow:
Annual energy cost per leaked CFM:
Operating exposure captured:
Repair labor and materials cost:

How to use the result

Use it after an ultrasonic leak survey to size the energy waste and prioritize repairs, or before approving a leak-management program to project savings.
The $/CFM-yr figure bakes in your compressor efficiency, line pressure, and run hours; if those assumptions are off, the energy cost scales directly with them and the result is only as good as that rate.

Current U.S. benchmarks

Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.

Common questions

How do you calculate the cost of a compressed air leak? Multiply the leak flow in CFM by an annual energy cost per leaked CFM, then scale by the share of operating hours the leak is actually live. With 85 CFM at $120/CFM-yr captured 95% of the time, that is $9,690 of avoidable energy per year before you add the $900 repair cost.
What is a good compressed air leak rate for a plant? Best-in-class facilities hold total leakage under 10% of compressor output; 20-30% is common and signals a neglected system. Any single leak above roughly 30 CFM is worth an immediate work order given the energy it wastes.
Why do small leaks cost so much? Compressors run nearly continuously, so a leak that seems trivial leaks every hour the plant is energized. At $120 per CFM-yr, even a 5 CFM leak is $600 a year, which is why ultrasonic surveys pay back quickly.
What does 'annual energy cost per leaked CFM' depend on? It depends on your electricity rate ($/kWh), compressor specific power (kW per 100 CFM), line pressure, and annual run hours. A typical 100 psi, 8,000-hour plant at $0.10/kWh lands near $100-150 per CFM-yr, which is why the default uses $120.
How is operating exposure captured used? It is the fraction of the year the leak is actually pressurized and leaking. If you depressurize lines on weekends or between shifts, set it below 100%; the default 95% assumes near-continuous operation.

Last reviewed 2026-05-12.