Heat Pump Savings Calculator
A heat pump typically cuts heating costs most when replacing electric resistance or oil heat, often paying back in a few years after incentives. Enter your home size, current fuel, and local prices below to estimate your annual savings, payback, and CO₂ reduction.
Assumptions & advanced options
Annual heating savings
$990/yr
Pays back in 4.0 years
New annual cost
$495
CO₂ cut per year
2,220 kg
Data updated: . Sources: EIA, DOE
How heat pump savings are calculated
We estimate your home's annual heating energy from its size and a climate factor, then compare the cost of meeting that demand with your current system (fuel energy ÷ efficiency × price) versus a heat pump (heat demand ÷ COP × electricity rate). Payback is the net install cost after incentives divided by the annual savings.
Frequently asked questions
- Does a heat pump actually save money on heating?
- It depends on what you heat with today. Heat pumps are dramatically cheaper than electric resistance or oil heat, and often cheaper than gas, because they move 2.5–4 units of heat per unit of electricity. The calculator above compares your current fuel to a heat pump at your local prices.
- How long until a heat pump pays for itself?
- Payback is the net install cost (after incentives) divided by your annual heating savings. Switching from electric resistance or oil often pays back in a handful of years; switching from cheap natural gas can take longer.
- What is COP and what number should I use?
- COP (coefficient of performance) is how many units of heat the pump delivers per unit of electricity. Cold-climate heat pumps average a seasonal COP around 2.5–3.5. The calculator defaults to 3.0.