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Heat Pump Savings Calculator

Enter what you spend heating your home now and how you heat it. This estimates the heat pump's running cost and the yearly difference.

How it estimates

From your current bill and an assumed system efficiency and fuel price, the tool back-calculates roughly how much delivered heat your home needs each year. It then divides that by the heat pump's SCOP and multiplies by your electricity rate to get the heat pump's running cost. The fuel prices used are national rough averages and vary a lot by region and year.

Why a heat pump can use a third of the energy

Electric resistance heat (baseboards, furnace strips) is always COP 1.0 — one unit of electricity becomes exactly one unit of heat. A heat pump moves heat from outside air rather than making it, delivering roughly 2.5 to 3.5 units of heat per unit of electricity over a season (its SCOP). Against resistance heat that is a big saving; against cheap natural gas the comparison is closer.

Rough outcomes by current fuel

You heat withHeat pump running cost vs now
Electric resistanceUsually ~⅓ — large saving
Heating oilUsually cheaper
PropaneUsually cheaper
Cheap natural gasAbout the same, sometimes more

Where running cost is a wash, the case for a heat pump rests on getting cooling in the same unit, better air quality, lower emissions, and rebates on the install. See heat pumps 101.

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Frequently asked questions

How can a heat pump beat electric baseboard heat by so much?
Resistance heat converts one unit of electricity into one unit of heat. A heat pump moves heat rather than making it, delivering roughly 2.5 to 3.5 units of heat per unit of electricity over a season (its SCOP). So it uses about a third of the electricity for the same warmth.
Will a heat pump save money versus cheap natural gas?
Not always on running cost alone. Where gas is inexpensive and electricity is expensive, a heat pump can cost about the same or slightly more to run. The case then rests on cooling included, comfort, air quality, and emissions.
What is SCOP?
Seasonal Coefficient of Performance — the average heat delivered per unit of electricity across a whole heating season, accounting for cold days when efficiency drops. Modern cold-climate units achieve 2.5 to 3.5.
Does this include installation cost or rebates?
No. This is a running-cost comparison only. Installing a whole-home heat pump typically runs $10,000–20,000; federal and state rebates and tax credits can cover a large share and shorten the payback considerably. Check current programmes before you buy.
Do heat pumps work in cold climates?
Modern cold-climate models maintain useful output and a coefficient of performance above 1.5–2 down to around −15 °C / 5 °F, and some run far colder. Many cold-climate installs keep a backup heat source for the few worst days a year.
How is the estimate calculated?
From your current annual heating cost, an assumed efficiency and fuel price for your current system, the tool back-calculates roughly how much delivered heat your home needs, then divides by the heat pump's SCOP and multiplies by your electricity rate. The current-fuel prices are rough national averages and vary a lot by region and year.
Will I still need my old furnace?
Often kept as backup for extreme cold or as a fallback, especially in older or poorly insulated homes. A properly sized cold-climate heat pump can be the sole heat source in many climates; a Manual J load calculation (not a rule of thumb) tells you.
Do heat pumps also cool?
Yes — a heat pump is an air conditioner that can run in reverse. If you were going to replace or add air conditioning anyway, that value should be counted alongside the heating running-cost comparison.

Last reviewed: September 2026. Figures and formulas are checked against their published sources; see the site's data notes.