Heat Pump Payback Calculator | The Greener Electron

See how quickly a heat pump could pay for itself. Enter your numbers below and the calculator estimates your annual savings, payback period, and long term net savings. Every assumption is visible and editable, because honest math beats marketing math.

Your current heating

Current heating system Used to estimate your system’s efficiency. You can override the efficiency in the assumptions below. Annual heating cost ($) Your total yearly spend on heating fuel or electricity for heat. Check past utility bills for your best estimate.

Natural gas price ($ per therm) Use the unit price shown on your utility bill. Example starting value: $3.00 per therm.

The heat pump option

Installed cost ($) Full quote from an installer, before incentives. Typical range: $8,000 to $20,000 depending on home size and system type. Heat pump efficiency (seasonal COP) A COP of 3.0 means the system delivers 3 units of heat for each unit of electricity. Cold climate models typically rate 2.5 to 3.5 for the season. Electricity price ($ per kWh) Find this on your electric bill. US average is around $0.17 per kWh. Incentives and rebates ($) Federal tax credits, state rebates, and utility incentives you expect to receive. Verify current programs in your area.

Assumptions (tap to view and edit)

System lifetime (years) Additional annual heat pump maintenance ($) Extra yearly maintenance compared with your current system. Enter 0 if you do not know the difference. Annual energy price increase (%) Applied equally to your current fuel and to electricity. Current system efficiency (%) Auto set from your system type above. Override it here if you know your equipment’s rated efficiency.

Fuel prices are editable above. The model converts fuel use to delivered heat with 29.3 kWh per therm of natural gas, 40.6 kWh per gallon of heating oil, or 26.8 kWh per gallon of propane. Electric systems use the electricity price above.

Your estimate

$0Heat pump electricity cost, year 1

$0Saved in year 1, after added maintenance

–Simple payback (year-one savings)

$0Net savings over system life

Payback point15 year system life

Before you decide

This is an estimate, not a quote. Real efficiency depends on your climate, insulation, ductwork, and installation quality.
Cooling savings are not included. A heat pump also replaces your air conditioner, which can add meaningful summer savings.
Get at least three installer quotes. Installed cost is the biggest variable in the payback math, and quotes vary widely.
Verify incentives yourself. Federal, state, and utility programs change often and have fine print on equipment requirements.
Cold climates need cold climate equipment. If winter temperatures regularly drop below freezing where you live, look for models rated for low ambient operation and use a conservative COP above.