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Heat Pump Savings Calculator

Estimate savings by switching from gas/oil heating to a heat pump.

Results

Heat Pump Annual Cost $548.57
Annual Savings $1,451.43
Savings % %72.57
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About This Tool

The Heat Pump Savings Calculator helps you estimate how much you can save by switching from a gas or oil heating system to a heat pump. Heat pumps are highly efficient, often providing 3-4 times more heat per unit of electricity compared to resistive heating. This tool compares your current fuel cost (gas, oil, or propane) with the cost of running a heat pump, factoring in efficiency ratings (HSPF or COP). It's ideal for homeowners considering an upgrade, renters comparing utility costs, or anyone looking to reduce their carbon footprint. By entering your current fuel usage, local prices, and heat pump efficiency, you get annual savings and a payback period. Many users find they save hundreds of dollars per year, especially in mild climates.

How It Works

The calculator uses the formula: Savings = (Current heating cost per year) - (Heat pump operating cost per year). Current cost = (BTUs needed / efficiency of existing system) × fuel price per BTU. Heat pump cost = (BTUs needed / HSPF) × electricity cost per kWh. For example, a home needs 80 million BTUs/year. Old gas furnace at 80% efficiency uses 100 million BTUs of gas. At $1.20/therm (100,000 BTUs), cost = $1,200. Heat pump with HSPF 10 uses 8,000 kWh. At $0.12/kWh, cost = $960. Savings = $240/year.

Examples

  • Example 1: Switching from an oil furnace (80% efficient, $3.50/gallon) to a heat pump (HSPF 9, $0.13/kWh) in a home needing 60 million BTUs/year. Oil cost: $2,625. Heat pump cost: $867. Annual savings: $1,758.
  • Example 2: Switching from a gas furnace (90% efficient, $1.10/therm) to a heat pump (HSPF 10, $0.11/kWh) for 40 million BTUs/year. Gas cost: $488. Heat pump cost: $440. Annual savings: $48.

Pro Tips

  • Use your actual annual fuel usage from bills (gallons of oil or therms of gas) rather than estimated BTUs for accuracy.
  • Consider your climate: heat pumps lose efficiency below freezing, so include backup heat costs if you live in a cold region.
  • Factor in maintenance costs: gas furnaces need annual servicing ($100-200), while heat pumps typically need less.
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