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Heat Pump Savings Calculator | Compare Heating Costs

Compare your current heating costs against a heat pump — enter your fuel type, local rates, and seasonal efficiency, and see the annual saving, payback, and the difference in cost per unit of heat delivered.

Last updated: August 2026 · Free · No sign-up required

Heat pump savings calculator: compare heating-system energy costs and simple payback using editable local assumptions.

How this tool works

All results depend on user-entered assumptions. Use current local tariffs, system specifications, and professional estimates for decisions.

Worked example

Enter representative inputs, review the result, and adjust assumptions to compare scenarios.

Frequently asked questions

What does this calculator estimate?

It provides an assumption-based planning estimate using the inputs shown on the page.

Should I use regional defaults?

Use current local rates and provider quotes whenever possible; undated averages can mislead.

Are taxes and fixed charges included?

Only if you include them in the entered rates or costs. Utility tariffs and fees vary.

Can prices change?

Yes. Electricity, fuel, public charging, and equipment costs can change over time.

Is this a quote or engineering analysis?

No. It is an educational estimate and not a purchase quote, design, or professional advice.

What should I verify next?

Confirm assumptions, local rates, equipment specifications, incentives, and installer or utility requirements.

Quick reference

Heating SourceCost per 100,000 BTUSeasonal Efficiency
Natural gas$1.00–1.4092–96% (condensing)
Heating oil$2.40–3.0085–90%
Electric resistance$3.20–4.10100%
Heat pump (COP 3.0)$1.10–1.40250–350%

heat_pump System comparison

Your fuel vs a heat pump.

savings Annual savings

The real bottom line.

lightbulb Pro tip

Regional prices decide the winner.

lightbulb Worked example: oil furnace vs. heat pump

A home in a cold climate needs 25,000 kWh of heat per year. It currently burns fuel oil at $3.50 per gallon in an 85%-efficient furnace, and the owner is considering a cold-climate heat pump with a seasonal COP of 3.2 on electricity at $0.17/kWh. Installation is quoted at $14,000.

Result: One gallon of fuel oil holds about 138,500 BTU (40.6 kWh of heat); at 85% furnace efficiency each gallon delivers 34.5 kWh into the home. The house burns 25,000 ÷ 34.5 ≈ 725 gallons per year, costing 725 × $3.50 = $2,538. A heat pump with COP 3.2 uses 25,000 ÷ 3.2 = 7,813 kWh of electricity, costing 7,813 × $0.17 = $1,328. Annual saving: $2,538 − $1,328 = $1,210. Payback: $14,000 ÷ $1,210 ≈ 11.6 years.

What this means: The heat pump cuts the heating bill nearly in half because every kilowatt-hour of electricity becomes 3.2 kWh of heat. The 11.6-year payback is honest but long — local rebates, rising oil prices, or replacing an aging furnace anyway would each shorten it, which is exactly what the calculator's scenario inputs are for.

Formula & methodology

Formula: Heat Pump Cost = Annual Heat Demand ÷ Seasonal COP × Electricity Rate. Savings = Current Fuel Cost − Heat Pump Cost. Payback = Installed Cost ÷ Annual Savings.

How the heat pump comparison works

The tool converts both heating systems to cost per unit of heat delivered: electric resistance delivers 1 kWh of heat per kWh consumed, while a heat pump with COP 3 delivers 3 kWh of heat per kWh of electricity. Gas is converted through its energy content and efficiency.

Example: 10,000 kWh of electric resistance heat at $0.15/kWh costs $1,500; a COP 3 heat pump uses only 3,333 kWh — $500 — saving about $1,000 per year.

Reading the result: the COP is the whole story — a higher seasonal efficiency (or HSPF) multiplies the saving, and cold climates need a cold-climate unit to keep the COP above 2 in winter. The calculator models the energy math; real savings depend on a correctly sized, well-installed system.

Authoritative source: https://www.energy.gov/energysaver/heat-pump-systems

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