Heat Pump Cost Calculator
This free heat pump cost calculator works out the annual running cost of a heat pump — and compares it against a gas furnace — using your home's heating load, the unit's efficiency (COP), and your local energy rates. Whether a heat pump is cheaper depends on your climate and electricity price, so enter your figures for a real answer. Covers the US, UK, Canada and Australia.
Last verified: August 23, 2026
Heat Pump
$1,140
per year
- Electricity used
- 6,261 kWh
- Cost per month
- $91
Gas Furnace
$916
per year
- Gas used
- 631 therms
- Cost per month
- $63
Estimate only. Actual costs depend on climate, home insulation, equipment sizing, and utility tariff structures.
How this is calculated
Each system converts an energy source into heat at a different efficiency. The heat pump uses electricity at COP efficiency; the furnace burns gas at AFUE efficiency.
Heat pump annual cost:
kWh needed = (Annual load in BTU ÷ 3,412) ÷ COP
Cost = kWh × Electricity rate
Gas furnace annual cost:
Therms needed = (Annual load in BTU ÷ 100,000) ÷ AFUE
Cost = Therms × Gas rate
Example (60 MMBtu load, COP 3.0, AFUE 95%):
Heat pump: (60,000,000 ÷ 3,412) ÷ 3.0 × $0.1820 = $1,067/yr
Furnace: (60,000,000 ÷ 100,000) ÷ 0.95 × $1.45 = $916/yrAssumptions
- COP is assumed constant across all weather conditions (real COP drops in very cold weather)
- AFUE is the stated annual average efficiency — actual varies by operating conditions
- Gas rate is in US dollars per therm (1 therm = 100,000 BTU)
- For UK/CA/AU, gas rates are in local currency per equivalent unit — adjust as needed
- Does not include equipment cost, installation, or maintenance
- Does not include cooling savings from heat pump reversibility
Break-even scenarios at US average rates
| Climate / Load | Heat pump (COP 3.0) | Gas furnace (95%) | Cheaper by |
|---|---|---|---|
| Mild (20 MMBtu) | $355.61/yr | $305.26/yr | Gas furnace ($50.34) |
| Moderate (60 MMBtu) | $1,066.82/yr | $915.79/yr | Gas furnace ($151.03) |
| Cold (100 MMBtu) | $1,778.04/yr | $1,526.32/yr | Gas furnace ($251.72) |
| Very cold (140 MMBtu) | $2,489.25/yr | $2,136.84/yr | Gas furnace ($352.41) |
At US averages: electricity $0.182/kWh, gas $1.45/therm (EIA, 2026-08-23). Results change significantly with local rates.
How much does a heat pump cost to run?
For a typical home, a heat pump costs roughly $1,000 a year to run in the US — a moderate 60 MMBtu heating load at COP 3, at the 2026 average electricity rate. In the UK, an air source heat pump typically runs £1,000–£1,500 a year — see our UK heat pump running costs guide for a full breakdown by home size. That works out to about 3,000–6,000 kWh of electricity a year, because a heat pump delivers 3–4 units of heat for every unit of electricity it draws.
Those are averages — your real running cost swings with four inputs, which is why the calculator asks for each rather than guessing.
What affects your heat pump running cost
- • Efficiency (COP / SCOP) — the biggest technical lever. A COP of 4 costs a third less to run than a COP of 3 for the same heat.
- • Your electricity rate — the biggest financial lever. A dedicated heat-pump or off-peak tariff can cut running cost dramatically; compare rates on the kWh cost calculator.
- • Climate — colder weather lowers the COP, so a cold snap costs more per unit of heat.
- • Heating load — a well-insulated home needs fewer MMBtu, so every insulation upgrade shrinks the bill.
Heat pump vs gas furnace: which is cheaper?
There is no universal winner — it comes down to the price of electricity versus gas in your area, and your climate. Where electricity is cheap relative to gas (or you're on a heat-pump tariff) and winters are mild to moderate, the heat pump usually costs less to run. In very cold climates with cheap gas, a modern high-AFUE furnace can win on running cost. The break-even table above shows exactly where it flips at US average rates; change the inputs to model your own.
How to use this heat pump cost calculator
Enter four things and the calculator returns the annual running cost of each system side by side:
- Annual heating load (MMBtu/year) — from your gas bill or an energy audit.
- Heat pump COP — 3.0 is a safe default; cold-climate units and mild weather run higher.
- Furnace AFUE — 95% for a modern condensing furnace.
- Your energy rates — pick your country for the 2026 averages, or type your own electricity and gas prices.
Frequently asked questions
How much does a heat pump cost to run per year? ▾
For a typical home, a heat pump costs roughly $1,000 a year to run in the US (a moderate 60 MMBtu heating load at COP 3 and the 2026 average electricity rate). In the UK, an air source heat pump typically runs £1,000–£1,500 a year. Your exact figure depends on your heating load, the unit's efficiency, your climate, and your electricity rate — enter them above for your number.
How much electricity does a heat pump use? ▾
A heat pump uses about 1 unit of electricity for every 3–4 units of heat it delivers (COP 3–4). A typical home needs roughly 3,000–6,000 kWh of electricity a year for heat-pump heating, depending on size, insulation and climate. That is why efficiency (COP/SCOP) and your electricity rate drive the running cost.
Are heat pumps cheaper to run than a gas furnace? ▾
Often, but not always. A heat pump wins when electricity is cheap relative to gas (or you are on a dedicated heat-pump tariff) and your climate is mild to moderate. A gas furnace can be cheaper in very cold climates with low gas prices. The break-even table on this page shows how it flips — run the calculator with your own rates.
How much does a heat pump cost to run in the UK? ▾
A typical UK air source heat pump costs about £1,000–£1,500 a year to run, though a well-insulated home on a heat-pump electricity tariff can come in lower, and a large or poorly-insulated home higher. The single biggest lever is your electricity unit rate, so a specialist heat-pump tariff makes a big difference.
Do heat pumps work in cold weather? ▾
Yes. Modern cold-climate (low-temperature) heat pumps keep working down to about -15°C to -25°C. Their efficiency (COP) does fall as it gets colder, so running cost rises in a cold snap — which is exactly what this calculator captures when you lower the COP.
What is COP and why does it matter? ▾
COP (Coefficient of Performance) is how many units of heat a heat pump delivers per unit of electricity. COP 3 means 300% efficient. In mild climates COP is typically 2.5–4.5; in very cold weather it can drop below 2. A higher COP directly lowers your running cost.
What is AFUE for a gas furnace? ▾
AFUE (Annual Fuel Utilisation Efficiency) is the percentage of gas energy a furnace turns into useful heat. A 95% AFUE furnace wastes only 5% as exhaust. Modern condensing furnaces are 92–98% AFUE; older units can be as low as 56–70%.
What is a typical annual heating load? ▾
A well-insulated 2,000 sq ft US home in a moderate climate uses roughly 40–60 MMBtu a year for heating. Cold climates (Minnesota, Canada) may need 80–120 MMBtu; mild climates (Texas, California) 10–30 MMBtu. Your gas bill or an energy audit will give your figure.
When does a heat pump cost more to run than a gas furnace? ▾
When electricity is expensive relative to gas, or your climate is very cold (regularly below -5°C / 23°F) so the COP drops. In those conditions a modern gas furnace can be the cheaper option to run — the calculator shows the crossover for your rates.
Do heat pumps also provide cooling? ▾
Yes — most heat pumps are reversible and act as an air conditioner in summer. This calculator covers heating cost only. For cooling, use our air conditioner cost calculator.
Sources
- U.S. Energy Information Administration — Natural Gas Prices — US average residential gas rate ($1.45/therm) (last checked 2026-08-23)
- U.S. EIA — Electric Power Monthly — US average residential electricity rate ($0.1820/kWh) (last checked 2026-08-23)
- U.S. Department of Energy — Heat Pump Basics — COP methodology and typical heat pump efficiency ranges (last checked 2026-08-23)
- ENERGY STAR — Furnace Efficiency (AFUE) — AFUE definition and efficiency benchmarks (last checked 2026-08-23)