Heat Pump Savings Calculator

Compare heat pump vs resistance heating cost.

Annual heat demand

kWh

Heat pump COP(optional)

COP

Typical 2.5-4

Electricity rate

$/kWh

Results update as you type.

Heat pump annual cost

—

Resistance heating cost—

Annual savings—

How it works

Heat pumps are far more efficient than electric resistance heaters because they move heat rather than generate it, and this calculator estimates the savings. You enter your annual heating demand in kilowatt-hours, the heat pump's coefficient of performance (COP), and your electricity rate, and it returns the heat pump's annual heating cost, the cost of electric resistance heating for comparison, and the savings. The key is the COP: a heat pump with a COP of 3 delivers three units of heat for every unit of electricity, so it needs only a third of the electricity that resistance heating (which is 100 percent efficient, COP of 1) would use for the same heat. That translates directly into cost savings — heating that costs $1,500 a year with resistance heat might cost only $500 with a COP-3 heat pump, saving $1,000 annually. Modern heat pumps typically have COPs between about 2.5 and 4, and even higher for efficient models in mild conditions, though COP falls in very cold weather. This comparison is against electric resistance heating; savings versus a gas furnace depend on gas prices and are calculated differently. The large annual savings often justify a heat pump's higher upfront cost within a few years, and heat pumps also reduce carbon emissions when powered by cleaner electricity. Enter your heat demand, COP, and electricity rate to estimate the savings.

Formula

Heat pump cost = (heat demand ÷ COP) × rate; savings vs resistance = heat × rate − heat pump cost

A heat pump delivers more heat than the electricity it uses, measured by its coefficient of performance (COP). Dividing the heat demand by the COP gives the electricity it needs, times the rate for the cost. Electric resistance heating needs the full heat demand in electricity, so the difference is the savings.

Source:HVAC efficiency

We review all our tools from time to time to ensure accuracy.

Worked example

Annual heat demand:10000Heat pump COP:3Electricity rate:0.15

Resistance: 10,000 × $0.15 = $1,500; heat pump: (10,000÷3) × $0.15 = $500; saves $1,000/year.

How to use this calculator

1
Enter your values
Enter annual heat demand and electricity rate.
2
Adjust the options
Adjust heat pump cop if they apply — sensible defaults are already set.
3
Read your result
Heat pump annual cost updates instantly as you type — no button to press.

Frequently asked questions

How much does a heat pump save on heating?

It depends on the COP and your electricity rate. A heat pump with a COP of 3 uses a third of the electricity of resistance heating for the same heat, so heating that costs $1,500 with resistance heat might cost $500, saving $1,000 a year. The calculator computes this from your heat demand, COP, and rate.

What is COP?

COP, or coefficient of performance, is the ratio of heat delivered to electricity consumed. A COP of 3 means the heat pump provides three units of heat per unit of electricity, because it moves existing heat rather than creating it. Higher COP means greater efficiency and lower running cost. Modern heat pumps typically have COPs of about 2.5 to 4.

Why are heat pumps more efficient than electric heaters?

Electric resistance heaters convert electricity directly to heat at 100 percent efficiency (COP of 1). Heat pumps instead move heat from the outside air or ground into your home, delivering several times more heat than the electricity they consume. This is why a heat pump's COP exceeds 1, making it far cheaper to run than resistance heating for the same warmth.

Does cold weather affect heat pump savings?

Yes. A heat pump's COP drops as the outdoor temperature falls, because there is less heat to extract from cold air, so efficiency and savings are lower in very cold weather. Cold-climate heat pumps are designed to maintain better performance in low temperatures. Use an average COP for your climate, or a lower one if you have harsh winters.

Is a heat pump worth the upfront cost?

Often yes. Heat pumps cost more to install than resistance heaters or basic systems, but their large annual savings frequently pay back the difference within a few years, after which they save money every year. They also provide cooling in summer and cut carbon emissions with clean electricity. Compare the annual savings here against the installation cost to estimate payback.