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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

A home using 10,000 kWh/year of electric resistance heat at $0.15/kWh, switching to a COP 3 heat pump.

Result: About $1,000 annual saving before installation cost.

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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