Heat Pump Savings Calculator
See how much you could save per year by switching to a heat pump from your current heating system.
How heat pump savings are calculated
We estimate your home's annual heating energy, then compare what your current system costs to deliver it versus a heat pump. A heat pump's efficiency is its HSPF — heat output per unit of electricity. At HSPF 9 it delivers about 2.6× more heat than the electricity it draws (versus 0.95 for a good gas furnace, or 1.0 for electric resistance).
Heat pump kWh = annual heat (BTU) ÷ (HSPF × 1,000) · annual cost = kWh × your electricity rate
When heat pumps save the most
Your savings hinge on the price ratio of electricity to your current fuel, plus your climate:
- Biggest wins: replacing electric resistance, oil, or propane — heat pumps are dramatically cheaper than all three.
- It depends: replacing cheap natural gas. Where gas is very cheap and electricity pricey, a heat pump can cost slightly more to run (though it adds cooling and cuts emissions). Our calculator shows this honestly.
- Colder climates need more heat, so absolute dollar savings are larger — if electricity is reasonably priced.
Savings vs each system (typical)
| Replacing… | Typical annual savings |
|---|---|
| Electric resistance | ★★★ Large (often 50–60% of heating cost) |
| Oil / propane | ★★★ Large |
| Natural gas | ★ Varies — sometimes negative on running cost alone |
Frequently asked questions
Are heat pumps actually cheaper to run than gas?
It depends on your local electricity vs gas prices and climate. Versus oil, propane or electric resistance heat pumps almost always win big. Versus cheap natural gas it can be close or slightly more — the calculator shows your real numbers.
What is HSPF?
Heating Seasonal Performance Factor — the seasonal heat output per watt-hour of electricity. Higher is better; modern units rate roughly HSPF 8–10 (HSPF2 ~7–8.5).
Do heat pumps save money on cooling too?
Yes — a heat pump cools as efficiently as a modern AC, so if it replaces an old AC you save in summer as well, which this heating-focused calculator doesn't even count.
How long until a heat pump pays for itself?
When replacing oil, propane or electric resistance, often 5–10 years; with incentives, sometimes sooner. Against cheap gas the payback is driven more by avoided AC replacement and comfort.
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⚠️ Rule-of-thumb estimate, not a substitute for a professional Manual J load calculation. Based on US DOE / ENERGY STAR guidance.