Heat Pump Savings Calculator
Enter what you pay now to heat your home and how efficient your system is. The calculator estimates what a heat pump would cost to run, the yearly savings and the payback time.
How to use this Heat Pump Savings Calculator
- Enter what you pay each year to heat the home with your current system.
- Enter the efficiency of that system. Use 100 for electric resistance heat.
- Convert your fuel price to dollars per kWh of fuel energy and enter it.
- Enter your electricity price and the average COP of the heat pump.
- Add the installed cost and any rebates, then press Calculate.
How to estimate heat pump savings
The calculator works out the heat you use, then what a heat pump would spend to supply it.
- Fuel energy = yearly heating cost / fuel price per kWh
- Heat delivered = fuel energy x system efficiency
- Heat pump electricity = heat delivered / COP
- Running cost = electricity x electricity price
- Payback = (installed cost – rebates) / yearly savings
Worked example
A home spends $1,800 a year on fuel priced at $0.09 per kWh of energy, which is 20,000 kWh of fuel. At 80% efficiency the home gets 16,000 kWh of heat. A heat pump with a COP of 3 needs 16,000 / 3 = 5,333 kWh of electricity. At $0.16 per kWh that costs $853.33, so the yearly saving is $946.67. With a $12,000 installation and $2,000 of rebates the net cost is $10,000, and the payback is 10.6 years.
The COP of a heat pump falls as the weather gets colder, so a single average hides the winter peaks. If your fuel is cheap natural gas, the savings can be small or even negative, while replacing oil, propane or electric resistance heat usually saves much more. Heat pumps also provide cooling, which this tool does not count. Try different COP and price values to see how sensitive the result is.
Assumptions & limits
- COP is an editable seasonal average. Real COP changes with outdoor temperature and the equipment.
- Fuel and electricity prices are held flat. Prices change over time.
- Cooling benefits, maintenance, repairs and the life of the equipment are not included.
- Rebates and tax credits differ by place and change. Check what applies to you.
- It is a rough estimate, not a quote or an energy audit.
Frequently asked questions
How much can a heat pump save?
It depends on what you heat with now. Savings are often larger against oil, propane and electric resistance heat than against cheap natural gas.
What is COP?
Coefficient of performance is the heat delivered divided by the electricity used. A COP of 3 means 3 units of heat for 1 unit of electricity.
How do I convert my gas price to kWh?
One therm of natural gas is about 29.3 kWh. Divide the price per therm by 29.3.
Why does COP change?
Heat pumps are less efficient in very cold weather, so the seasonal average matters.
Does this include cooling?
No. It only compares heating costs.
Are there rebates?
Often yes, but they vary by place. Check what is available to you.
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Last updated: November 2026