Heat Pump Calculator

Calculate heat pump size and savings vs gas furnace, electric, or oil heating.

Annual Savings

$500.00

Net Cost (after credit)

$13,000.00

Payback

26.0 years

Heat Pump Analysis

Recommended Size3.3 tons
SEER Rating20
Install Cost$15,000.00
Tax Credit-$2,000.00
Net Cost$13,000.00
Current Gas Furnace Cost$1,200.00/yr
Heat Pump Annual Cost$700.00/yr

Use the Heat Pump Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

A Heat Pump Calculator estimates the energy consumption and cost savings of using a heat pump for heating and cooling compared to traditional systems. This is important for homeowners and businesses to make informed decisions about upgrading their HVAC systems, considering both environmental impact and long-term financial benefits.

The calculator typically uses seasonal performance factors (HSPF for heating, SEER for cooling) to estimate energy usage. It compares this to the fuel efficiency (e.g., AFUE for furnaces) and fuel cost of alternative systems, then multiplies by the local energy tariffs and estimated operating hours.

Ensure you have accurate local electricity and fuel prices, as these significantly impact cost savings. Don't forget to factor in the upfront installation cost of the heat pump when evaluating long-term financial viability, and consider your climate zone for realistic performance estimates.

Example: Replacing an Oil Furnace with a Heat Pump

  1. 1 Input your current oil furnace's AFUE (e.g., 80%), annual oil consumption (e.g., 800 gallons), and oil price ($3.50/gallon). Then, input the proposed heat pump's HSPF (e.g., 9.5), SEER (e.g., 18), and local electricity price ($0.15/kWh).
  2. 2 The calculator will determine the energy content of the oil used, convert it to equivalent kWh, and then compare the heating/cooling energy demand against the heat pump's efficiency. It will calculate the annual operating cost for both systems.
  3. 3 Current Annual Oil Furnace Cost: $2,800. Estimated Annual Heat Pump Cost (Heating & Cooling): $1,200. Annual Savings: $1,600.
  4. 4 By switching to a heat pump, this homeowner could save $1,600 per year on energy bills. This significant saving highlights the financial benefit of upgrading, especially when considering the lifespan of the heat pump.

Source: DOE · Last updated: April 2026

Frequently Asked Questions

How much does a heat pump cost to install?
A new heat pump system costs $4,000-$8,000 for a standard air-source unit or $15,000-$30,000 for a ground-source (geothermal) system. After the 30% federal tax credit ($2,000 max for air-source, no cap for geothermal), net costs are significantly lower.
How much can a heat pump save compared to a gas furnace?
Heat pumps are 2-3 times more efficient than gas furnaces. Savings depend on local electricity vs gas rates. In moderate climates, switching from gas can save $500-$1,000 per year. In very cold climates, a dual-fuel system (heat pump plus gas backup) is often optimal.
Do heat pumps work in cold climates?
Modern cold-climate heat pumps work efficiently down to -15 degrees F and can operate at temperatures as low as -22 degrees F. Efficiency decreases in extreme cold, so homes in the coldest zones may benefit from a backup heating source for the coldest days.

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