How Much Does Compressed Air Really Cost? (Hint: It’s More Than You Think)
When you think about air compressors, it’s easy to focus on the upfront price tag. But the real cost of compressed air is much bigger - and it can take a big bite out of your operating budget if you’re not paying attention.
Compressed air is often called the “fourth utility” after electricity, water, and natural gas. It’s essential, but it isn’t cheap. Let’s break down what actually goes into the true cost of producing compressed air and how you can save money over time.
Breaking Down the True Cost of Compressed Air
1. Energy Consumption
Energy accounts for up to 70% of an air compressor’s total lifetime cost. That’s right! Most of what you pay to own and run a compressor isn’t in buying it, but in powering it.
- Oversized compressors running below capacity waste energy.
- Leaks force your system to work harder and consume more electricity.
- Poor system design (like long piping runs or too many bends) causes pressure drops and extra strain.
2. Maintenance and Repairs
Routine maintenance, filters, oil changes, and unexpected repairs add up fast. Skipping service might save a few bucks now, but it usually leads to higher energy costs and expensive breakdowns later.
3. Air Leaks
On average, a typical plant loses 20–30% of its compressed air to leaks. A single 1/8-inch leak at 100 psi can cost you hundreds (or even thousands) of dollars every year in wasted energy.
4. Poor System Efficiency
Pressure drops, incorrect dryer sizing, and undersized piping can all force your compressor to run longer and harder than necessary — quietly draining your budget.
How to Calculate Your Actual Compressed Air Cost
To get a rough idea of what your compressed air is really costing you, consider this formula:
Total Cost = Energy + Maintenance + Capital Cost + Losses (like leaks)
Most facilities find that energy is by far the biggest piece of the pie, so tackling efficiency first makes the most impact.
Ways to Reduce Your Compressed Air Costs
- Fix leaks and regularly inspect your system.
- Use properly sized equipment — bigger isn’t always better.
- Lower system pressure when possible.
- Invest in energy-efficient upgrades like variable speed drives (VSDs).
- Follow a proactive maintenance schedule to keep components running at peak efficiency.
Ready to Start Saving?
Understanding the true cost of compressed air is the first step toward cutting your expenses and keeping your system running smoothly. A few changes today can lead to big savings tomorrow.
Check out our Preventative Maintenance blog to learn more ways to keep your costs low and your equipment in top shape.