Data sourced from the U.S. Dept. of Energy, Energy Star, and the EIA.
Heat Pump ROI Calculator
Compare a cold-climate heat pump's running cost against your current fuel and see how fast the upgrade pays back.
2,000
$8,800
Add state and utility rebates on top for a shorter payback.
ESTIMATED NET INSTALL COST
≈ $8,800
Possible annual running-cost savings
≈ $820
about 11 yr payback
Rounded estimate — free, no sign-up, nothing collected.
Estimate, not a guarantee.Rounded for guidance. Your figures depend on your home, local rates, and usage.
How we calculate this
Formula: Annual savings = (current fuel's modelled annual heating cost − heat pump's modelled cost), both scaled by home size. Net install = your quote (no federal credit applies in 2026). Payback = net install ÷ annual savings.
Assumptions:
A 2,000 sq ft baseline, scaled linearly by your home size.
A cold-climate heat pump at a seasonal COP of about 3.
2026 national-average fuel prices. The federal 25C credit ended for property placed in service after 31 December 2025, so none is applied — check state and utility rebates separately.
Limits: Linear scaling by floor area ignores insulation quality, climate zone, and air-sealing — the three things that most change real heating demand. Treat the payback as an order of magnitude.
No. The federal Energy Efficient Home Improvement Credit (25C) terminated for property placed in service after 31 December 2025, so no federal credit is applied. Subtract any state or utility rebate you qualify for yourself.
Which fuels can I compare against?
Natural gas, heating oil, propane, and electric resistance heat — the four most common baselines for a heat pump upgrade.
How we frame itCost→Savings→Payback→Confidence→Next step