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About Heat Pump vs Furnace Cost Calculator: Heating Costs & Payback
Compare estimated annual heating energy costs for an electric heat pump and a fuel furnace using efficiency, energy prices and heating demand.
Change the example inputs to match a scenario and review the methodology and limitations before using the result in a decision. Calculations run locally in your browser.
How the calculation works
Heat pump annual cost
(Annual useful heating demand ÷ seasonal COP) × electricity price per kWh.
Furnace annual cost
(Annual useful heating demand ÷ (furnace efficiency % ÷ 100)) × furnace fuel price per kWh equivalent.
Annual savings & payback
Annual savings = furnace cost − heat pump cost; payback years = positive installation premium ÷ positive annual savings.
How to use this calculator
- 1Replace the example values with internally consistent inputs.
- 2Review all result cards and any not-applicable state.
- 3Compare multiple scenarios and verify important assumptions independently.
Understanding the result
A heat pump with high seasonal COP can deliver substantial annual savings if fuel energy prices are high relative to electricity rates.
Payback years indicate how long it takes for annual heating cost savings to recover any upfront equipment and installation premium.
If annual savings are zero or negative, an upfront heat pump premium will not pay back through operating savings alone.
Important limitations
- Outputs are planning estimates and do not include every provider, accounting, financing, tax, legal, or operational factor.
- Invalid divisions are shown as not applicable rather than NaN or Infinity.
- This is a simplified seasonal energy comparison.
- Climate, backup resistance heat, fuel standing charges, maintenance and equipment life are excluded.
- COP varies with outdoor temperature and equipment design.
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Frequently asked questions
What is COP in a heat pump?
Coefficient of Performance (COP) represents the ratio of useful heat output to electrical energy input. A COP of 3 means 3 kWh of heat are delivered per 1 kWh of electricity.
How is furnace fuel input calculated?
Furnace fuel input equals useful heating demand divided by furnace efficiency fraction (e.g., 90% = 0.90).
What does furnace fuel price per kWh equivalent mean?
It is the cost of heating fuel (natural gas, propane, or heating oil) normalized to kilowatt-hour heat content equivalents (1 therm ≈ 29.3 kWh; 1 gallon propane ≈ 27 kWh).
What if heat pump installation is cheaper than furnace installation?
If there is no positive installation premium, the payback period is 0 years because upfront costs are already recouped.
Does this calculator factor in summer cooling?
No. This model focuses strictly on space heating comparisons. If replacing an existing AC, cooling value may provide additional economic benefits.
Are entered heating values stored or uploaded?
No. All calculations run strictly in your web browser.
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