Heat Pump Savings Calculator
✓ Verified for 2026 | Sourced from NEEP ccASHP Guidelines & Official Utility Data
Compare the annual operating cost of a heat pump vs a gas furnace in your specific climate. Enter your current gas and electricity rates to get an accurate estimate.
Annual Savings & Payback Comparison
| Current Heating Fuel | Avg Annual Heating Cost | Cost with Heat Pump | Est. Annual Savings | Avg Payback |
|---|---|---|---|---|
| Heating Oil / Propane | $2,800 - $3,800/yr | $1,400 - $2,100/yr | $1,200 - $1,800/yr (45%) | 2 - 3.5 yrs |
| Standard Gas Furnace | $1,600 - $2,400/yr | $1,200 - $1,700/yr | $400 - $700/yr (25%) | 3.5 - 5 yrs |
| Electric Baseboards | $3,200 - $4,500/yr | $1,200 - $1,800/yr | $1,800 - $2,700/yr (60%) | 1.5 - 2.5 yrs |
How Heat Pump Savings Work
Heat pumps move heat rather than generating it, achieving 200–350% efficiency (COP 2–3.5). Even in cold climates, they extract usable heat from outdoor air down to −13°F. At national average energy prices ($0.138/kWh electricity, $1.10/therm gas), a heat pump typically costs 30–50% less to operate than a gas furnace for the same heating load.