Heat Pump Savings Calculator

Would a heat pump actually cut your heating bill? Enter what you spend now, your fuel and electricity prices — and see the annual savings (or not).

$/yr
$/therm

3.0 typical; 2.0–2.5 in very cold climates; 4+ for ground-source.

$/kWh

Annual savings with a heat pump

$0

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Current cost: $0/yr Heat pump cost: $0/yr Heat delivered: 0 kWh

Running-cost comparison only — installation cost, incentives, and cooling benefits aren't included. Seasonal COP varies with climate and system quality; get quotes with modeled performance for your home.

Keep going

AC / Heater Running Cost → Cost of any heating or cooling appliance. BTU / AC Size Size the heat pump for your space. Electricity Bill What the switch does to your total bill.

How the comparison works

The calculator works out how much useful heat your home actually consumes each year, then prices that same heat through a heat pump:

  1. Fuel burned: annual cost ÷ fuel price = units of fuel per year.
  2. Heat delivered: units × energy content × system efficiency. (1 therm ≈ 29.3 kWh, 1 gal oil ≈ 40.6 kWh, 1 gal propane ≈ 26.8 kWh, electric resistance = 100% of kWh.)
  3. Heat pump electricity: heat delivered ÷ COP. At COP 3, every kWh of electricity moves 3 kWh of heat indoors.
  4. Heat pump cost: that electricity × your rate. The difference is your annual saving.

The rule of thumb that falls out: a heat pump at COP 3 beats your current system whenever your electricity price is less than 3× your effective heat price. Against electric resistance heating it wins by roughly the COP itself — a ~60–70% cut.

Heat pump FAQ

Does a heat pump really save money over gas?

Only if your electricity price is less than about COP × your gas price per kWh of heat. Cheap gas + expensive electricity can still favor gas — that's exactly what this calculator checks with your numbers.

What COP should I use?

Seasonal average: ~3.0 for modern air-source in moderate climates, 2.0–2.5 in very cold climates, 3.5–4.5 for ground-source.

How much heat is in a therm, oil, or propane?

Therm ≈ 29.3 kWh, heating oil ≈ 40.6 kWh/gal, propane ≈ 26.8 kWh/gal — times furnace efficiency (80–95%) for delivered heat.

Do heat pumps work in cold climates?

Cold-climate models heat down to −25°C / −13°F. Use a lower COP (2.0–2.5) here and expect some backup heat on the coldest days.