Use this calculator to see what a heat pump would cost to run in your home compared with the system you have now, and how many years the installation takes to pay for itself.
Your result
Yearly heating cost for this home, by fuel
| Heat your home needs per year | – |
| Heat pump seasonal COP | – |
| Heat pump electricity use | – |
| Net upfront cost | – |
How the heat pump savings calculator works
First it estimates how much heat your house needs in a year. That depends on the heated floor area, how cold your winters are (measured in heating degree days) and how well the house is insulated. Then it prices that same amount of heat with each fuel, using each fuel’s energy content and the efficiency of the equipment.
Annual heat (BTU) = square feet × heating degree days × 6.3 × insulation factor
Fuel cost = annual heat ÷ efficiency ÷ BTU per unit × price per unit
Heat pump COP = HSPF2 ÷ 3.412, reduced 5–20% in cold climates
The 6.3 BTU per square foot per degree day matches a typical 2,000 sq ft American home in a 5,500 degree-day climate that burns about 700 therms of gas a winter. If your real fuel use is higher, choose “Poor” insulation.
What the results mean
- Yearly savings is your current heating bill minus what the heat pump would cost in electricity. A negative number means the heat pump costs more to run at your prices.
- Payback divides the net installed price (after rebates and after anything you would have spent replacing old equipment anyway) by the yearly savings.
- 15-year net is 15 years of savings minus the net cost. Most heat pumps last 12 to 15 years.
When a heat pump pays back fastest
Heat pumps save the most when you currently heat with propane, heating oil or electric baseboard, because those are the most expensive sources of heat per million BTU. Against natural gas the answer depends on the ratio of your gas and electricity prices. As a rule of thumb, divide your gas price per therm by your electricity price per kWh. If the result is above about 10, a modern heat pump will usually cost less to run than a 95% efficient gas furnace; below about 9, the furnace usually wins. The heat pump vs furnace guide shows the math.
The other big lever is timing. If your furnace or air conditioner is near the end of its life, enter what a like-for-like replacement would cost in the “avoided replacement” field. That money is spent either way, so only the difference counts against the heat pump.