Written by the Customer Solutions team at Complete Washrooms
This article is here to answer the question: "Are hand dryers cheaper than paper towels?"
Cost model prepared late 2026. All amounts are in Australian dollars.
TLDR:
An efficient hand dryer can cost substantially less in electricity than paper towels. Whether it saves money overall depends on the installation cost, usage, maintenance and how long the equipment lasts.
In the benchmark calculation below, a washroom handling 200 hand dries per operating day spends approximately $2,000 a year on paper towels, compared with $73 on dryer electricity.
Overall, hand dryers can save considerable cost and usually pay themselves off reasonably quickly, but there are pros and cons to consider.
Hand Dryer vs Paper Towel Cost Calculator
Adjust the figures below to estimate the cost difference between paper towels and an electric hand dryer.
Optional: include costs such as bin liners, waste disposal, refilling dispensers or other paper towel servicing costs if relevant to your site.
Estimated annual operating saving
Estimates only. Actual costs vary depending on hand dryer model, electricity rates, paper towel consumption, installation and site operating conditions.
Hand dryers vs paper towels: annual running costs
This comparison uses two paper towels per hand dry, a paper price of 2 cents per sheet and an efficient-dryer energy benchmark. It assumes 250 operating days per year. The sources and assumptions are explained immediately below.
| Complete hand dries per operating day | Annual paper purchases | Annual dryer electricity | Difference before other costs |
|---|---|---|---|
| 20 | $200 | $12 | $188 |
| 50 | $500 | $22 | $478 |
| 100 | $1,000 | $39 | $961 |
| 200 | $2,000 | $73 | $1,927 |
| 500 | $5,000 | $174 | $4,826 |
Calculated figures, rounded to the nearest dollar. Dryer electricity includes a standby allowance for one unit. Equipment, installation, maintenance, cleaning labour, paper delivery and waste costs are excluded.
The difference grows with use because paper is purchased for every hand dry. However, daily usage alone does not establish how many dryers a washroom needs. Equipment must also accommodate the number of people arriving during busy periods.
Compare the cost of a complete hand dry
A towel sheet and a dryer activation are not equivalent units. The useful measure is the cost of drying a pair of hands fully.
For the calculations above, we assume that one standard dryer cycle or two paper towels completes the task. Where people need more towels or longer drying time, increase the relevant input.
Paper towel cost per hand dry
Price per sheet × sheets used per hand dry
At 2 cents per sheet and two sheets per use: $0.02 × 2 = $0.04 per hand dry
That is $40 in paper purchases per 1,000 hand dries.
Dryer electricity cost per hand dry
Energy per drying cycle × electricity price
At 4.5 kWh per 1,000 cycles and $0.30 per kWh: 4.5 ÷ 1,000 × $0.30 = $0.00135 per hand dry
That is $1.35 in active electricity per 1,000 hand dries, before standby consumption.
For the 50,000 annual hand dries in the main example, active electricity costs $67.50. The full-year standby allowance adds approximately $5.26.
Wattage alone does not tell you the cost
Energy use depends on both power and operating time.
For example, a 1 kW dryer running for 30 seconds uses the same active energy as a 2 kW dryer running for 15 seconds:
1 × 30 ÷ 3,600 = 2 × 15 ÷ 3,600 = 0.00833 kWh.
Where only wattage and drying time are available, an estimate is:
Operating power in kW × drying time in seconds ÷ 3,600
Use the total operating power for the selected setting, including the heater where applicable. Include repeat activations when estimating actual use.
How long does a hand dryer take to pay for itself?
Payback depends on the additional upfront investment and the annual costs genuinely avoided.
Simple payback = additional upfront cost ÷ net annual operating saving
At 200 hand dries per operating day, the benchmark difference between paper purchases and dryer electricity is approximately $1,927 a year.
Before allowing for differences in maintenance, cleaning or waste costs:
| Additional upfront investment | Calculated payback at 200 hand dries per operating day |
|---|---|
| $500 | Approximately 3.1 months |
| $1,000 | Approximately 6.2 months |
| $2,000 | Approximately 12.5 months |
| $4,000 | Approximately 25 months |
These investment amounts are scenarios, not average installation prices or quotations. Payback assumes usage is reasonably distributed throughout the year.
To include other costs, subtract any additional annual dryer costs from the saving, and add any paper-system costs that will actually disappear.
For example, an assumed $100 a year of additional dryer maintenance would reduce the $1,927 saving to approximately $1,827. Payback on a $1,000 investment would increase from about 6.2 to 6.6 months.
An existing dispenser changes the comparison
When replacing a paper system that you already own, its original purchase price is a sunk cost. Do not count that historical spending as a saving from installing a dryer.
Compare the full additional switching cost against future savings. Include removal work or contract exit costs where relevant.
For a new fit-out, compare the complete installed costs of the two alternatives. That may include the paper dispenser, waste bin and installation on one side, and the dryer and its installation on the other.
Low usage can make paper towels cheaper overall
At 20 hand dries per operating day, the benchmark saves only about $188 a year before other costs.
A $1,000 additional investment would take approximately 5.3 years to recover. It would not pay back within a five-year comparison, even before allowing for additional maintenance or replacement.
For a short lease or lightly used washroom, keeping an existing paper towel system may therefore be the more economical decision.
Which assumptions change the answer most?
The following changes show how sensitive the main example is to paper consumption, electricity and installation costs. Each change is applied separately to the 50,000-dry annual scenario.
| Change to the benchmark | Effect |
|---|---|
| Three paper towels per dry instead of two | Adds $1,000 a year to paper purchases |
| Paper price falls from 2 cents to 1 cent per sheet | Reduces annual paper purchases from $2,000 to $1,000 |
| Electricity rises from $0.30 to $0.60 per kWh | Adds approximately $73 a year to dryer electricity |
| Active dryer energy consumption doubles | Adds approximately $68 a year, assuming standby remains unchanged |
| The additional installation investment rises from $1,000 to $1,500 | Extends payback from approximately 6.2 to 9.3 months, before other costs |
In this example, paper price and the number of sheets used have a greater effect than a similar percentage change in electricity consumption.
That makes the cost per complete hand dry more useful than the cheapest carton price or the lowest advertised dryer wattage.
Include the costs that change at your site
Equipment and installation
Obtain prices for a finished installation in the proposed location.
For a dryer, ask the installer to assess the power connection, electrical work, mounting surface, fixings and any wall repairs. Confirm whether the selected model is suitable for the proposed connection and location.
For paper towels, include the dispenser, installation and suitable waste provision. Compare equipment with a similar capacity, finish and mounting arrangement.
Price the number of drying positions needed during peak demand, not just one appliance against one dispenser.
Cleaning and refilling
Estimate the tasks that differ between the two systems.
For paper towels, these may include collecting stock, refilling dispensers, clearing jams, changing liners and handling towel waste. For dryers, obtain the manufacturer’s cleaning and servicing requirements, including any filter or water-collection maintenance.
Keep staff time saved separate from cash saved.
For illustration, five additional minutes per operating day at an assumed labour cost of $40 an hour represents:
5 ÷ 60 × 250 × $40 = approximately $833 a year in labour time.
That does not automatically reduce the cleaning invoice by $833. It may instead release time for other work within an existing shift.
Waste collection
Count only the waste costs that will actually change.
Removing paper towels may reduce the number of liners used or time spent emptying bins. However, a bin may still be required for other waste, and the contracted collection price may remain unchanged.
Avoid attributing the entire washroom waste bill to hand towels.
Maintenance, repairs and replacement
Ask for the servicing schedule, replacement-part availability and warranty terms for the products being considered.
Check what happens if equipment fails: who arranges repairs, whether labour and call-outs are covered, and whether removal or reinstallation is included.
Use a realistic comparison period. Do not calculate ten years of savings while assuming, without evidence, that neither system will need repair or replacement.
Consumables agreements
For a dispenser supplied under a paper agreement, compare the full arrangement rather than the initial dispenser price.
Check compatible refills, minimum orders, delivery charges, price-review terms, contract length and exit conditions.
Include any battery costs for an automatic dispenser. The benchmark above assumes a manual paper dispenser.
How to reduce paper towel costs without switching to a dryer
Paper towels may be the preferred or required option for a facility. The cost comparison is still useful because it identifies where to investigate consumption.
Start with the cost per complete hand dry.
For example, using illustrative prices:
A towel costing 1.6 cents per sheet, used three at a time, costs 4.8 cents per hand dry.
A towel costing 2 cents per sheet, used two at a time, costs 4 cents per hand dry.
The lower sheet price is not necessarily the lower operating cost.
Check that refills fit the dispenser correctly, dispensing is reliable and users can dry their hands without taking unnecessary sheets. For roll towels, compare roll length, dispensed length and the number of pulls required, rather than roll price alone.
Where stock records are available:
Sheets consumed = opening stock + sheets received − closing stock
Separate paper used for hand drying from paper used for cleaning or other tasks. A dryer will not remove the need for those other supplies.
Hygiene: which drying method is suitable?
Drying should be treated as part of hand hygiene, not simply a consumables decision.
The NHMRC notes that damp hands pick up and transfer more bacteria than dry hands. The selected method needs to allow people to dry their hands thoroughly.
General workplace and public washrooms
The US Centers for Disease Control and Prevention states that there is insufficient scientific evidence to determine whether a clean towel or an air dryer is more effective at reducing germs on hands. It recognises both as effective drying methods and emphasises complete drying.
This does not establish that every drying system is equally suitable for every setting. It also should not be interpreted as proof of equivalent infection outcomes.
Clinical handwashing areas
Follow the facility’s infection prevention requirements and approved specifications.
For example, the CDC’s clinical handwashing guidance specifies disposable towels after washing with soap and water. This is US guidance, not an Australian installation rule, but it illustrates why general public-washroom advice should not be substituted for a clinical protocol.
For an Australian healthcare project, confirm the proposed arrangement with the facility’s infection prevention team before purchasing.
Early childhood education and care
The NHMRC’s Staying Healthy guidance identifies disposable paper towels as the preferred hand-drying method in education and care services. Its discussion also notes practical limitations of warm-air dryers, including incomplete drying when they are not used for long enough.
A cost-saving calculation should not override the service’s applicable hygiene requirements.
Food-handling facilities
Check the requirements for the specific handwashing location with the relevant environmental health officer.
WA Health’s food-business guidance lists single-use paper towels among the supplies to provide at handwashing facilities. Queensland Government guidance also describes another effective method, including an air dryer, where it is unlikely to transfer disease-causing organisms to hands. These guidance pages should not be treated as a blanket approval or prohibition for every food premises.
Specify whether the proposal concerns a food-handler handwashing basin, a staff washroom or a customer toilet when seeking advice.
Check peak demand, noise and accessibility
Average daily use is useful for the budget. Peak demand determines whether the installation works.
As a simple capacity illustration, a 15-second drying cycle permits a theoretical maximum of four cycles per minute before allowing any time between users. That is not a recommended design capacity.
Assess the busiest interval: a lunch break, school interval or event intermission may place very different demands on a washroom from evenly distributed use.
When comparing products, ask for the sound level and test conditions, including the operating setting and measurement distance. For example, the UK Government’s dryer criteria specifically call for noise and operating-mode information to be reported.
Have the designer or installer check reach, mounting position, circulation space and the approach to the drying area. Include the paper-towel bin in the layout rather than adding it after other equipment has been positioned.
Consider whether a paper alternative is needed for users who cannot comfortably use the proposed dryer.
Does providing both options make sense?
It can, but the financial model must reflect the paper that remains in use.
For example, suppose half of the 50,000 annual hand dries in the benchmark move to a dryer, while the other half continue using two towels.
Annual costs would be approximately:
| Cost | Mixed-use scenario |
|---|---|
| Paper purchases | $1,000 |
| Dryer electricity, including the standby allowance | $39 |
| Combined paper and electricity cost | $1,039 |
The difference from the all-paper benchmark would be about $961 a year before equipment, maintenance, cleaning and waste costs.
Providing a choice may be worthwhile for practical reasons. It simply should not be presented as eliminating the paper bill.
Environmental impact: separate it from the cost calculation
A lower operating bill is not a carbon-footprint measurement.
A published life-cycle study identified towel production and dryer electricity as major contributors to the environmental impacts of the systems it assessed. However, that study used an Ontario electricity scenario and specific equipment and paper assumptions. Its results are not an Australian 2026 emissions factor.
For an environmental comparison, request evidence that identifies the electricity supply, energy per dry, towel type and quantity, equipment lifespan and the processes included in the assessment.
Check whether manufacture, transport, maintenance and disposal are included before comparing headline percentages. Confirm the appropriate towel-disposal route with the site’s waste contractor.
Making the decision
An efficient dryer is worth investigating where repeated paper purchases create a substantial annual cost, the installation is practical and the facility permits its use.
Paper towels may remain the better choice where usage is low, switching costs are high, the expected occupancy period is short or the site’s hygiene requirements favour them.
The purchasing decision should come from a comparison of the complete alternatives:
Upfront equipment and installation + operating costs over the chosen period + expected repairs and replacements.
When comparing options, think about the facility type, approximate daily and peak usage, available wall space, existing power provision and any project-specific requirements.
Complete Washrooms offers commercial hand dryers and paper towel dispensers.
Hand dryers and paper towels compared
| Consideration | Hand dryers | Paper towels |
| Initial cost | Usually higher and requires electrical installation | Generally lower, depending on the dispenser |
| User experience | Touch-free operation is widely available | Familiar, quick and easy to use |
| Waste | No paper-towel waste | Produces ongoing consumable waste |
| Best application | Medium- to high-use commercial washrooms | Offices, healthcare settings and locations where towels are preferred |
A hand dryer may be more economical over time in a busy washroom because it removes the ongoing cost of paper towels. Paper towels can still be practical where usage is lower, electrical installation is difficult or users require a physical towel.
Product examples
Compare the options:
About the calculations
The figures in this guide are calculated scenarios, not measured customer results or national industry averages. Prices and usage are held constant. The model assumes that one standard dryer cycle completes each hand dry.
Electricity includes a conservative 2 W standby allowance for all 8,760 hours of the year, slightly overstating standby by including operating hours. No additional heat-store load is assumed. Add any electricity supply or demand charges that would change because of the installation.
Payback examples exclude financing, discounting and residual value. They also exclude maintenance, cleaning, waste and replacement costs unless expressly stated. Obtain product specifications and site-specific quotations before approving an installation.
What numbers are used?
Published benchmarks provide a consistent starting point when invoices, installation quotes or usage records are not yet available. They also make the comparison easier to check and adapt.
| Input | Value used | Basis |
|---|---|---|
| Dryer energy during use | 4.5 kWh per 1,000 drying cycles | The maximum permitted by the UK Government’s published Energy Technology List technical criteria for eligible hand dryers. This is an efficiency benchmark, not the average consumption of all dryers. |
| Dryer standby power | 2 W allowance | Based on the same criteria’s standby limit, excluding any additional heat-store function. |
| Electricity price | $0.30 per kWh | Rounded from a published Western Australian business tariff, excluding GST. |
| Paper price | $0.02 per sheet | Rounded from a published Australian retail price of $59.99 excluding GST for 3,000 sheets. Delivery is not included in the model. |
| Paper consumption | Two sheets per complete hand dry | A planning assumption, not a measured Australian average. |
| Operating days | 250 per year | A modelling scenario. Use the actual operating calendar for the facility. |
The UK Government’s detailed criteria specify no more than 4.5 kWh per 1,000 standard drying cycles and a standby limit of 2 W, subject to the stated exclusions. A shortlisted dryer should be assessed using its own specifications rather than automatically assigned these figures.
For electricity, Synergy’s Business Plan L1 rate from 1 July 2026 is 33.1278 cents per kWh including GST for the first consumption tier. That is approximately 30.12 cents excluding GST, rounded here to 30 cents. This is a documented WA tariff, not a national electricity-price average.
The paper assumption is consistent with, or even somewhat cheap, compared to Complete Washrooms current paper towel options.