Formula
Estimated heat pump running cost = current annual cost / 0.92 / COP x electricity rate. Annual saving = current annual cost - heat pump running cost. Payback = installed cost / annual saving.
Heat Pump ROI Calculator
Estimate heat pump payback by comparing current annual heating cost with heat pump running cost and installed cost.
Worked example
With $1,800 current heating cost, COP 3.5 and $0.28/kWh, estimated heat pump running cost is about $156 and annual saving is about $1,644.
Professional note
Professional note: print the input values, formula, result and date together so the calculation can be reviewed later.
Regional and unit assumptions
Basis: transparent planning arithmetic using the visible inputs and assumptions on this page.
Assumptions and limitations
- This calculator is for planning and education, not legal, tax, medical, immigration, engineering or financial advice.
- Use current official rates, contracts, carrier terms, statutes or professional guidance before relying on the result.
- The default values are examples. Replace them with the figures from the job, invoice, contract, bill, service or record being checked.
Methodology & Accuracy
How this calculator is checked
CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.
Formula used
Estimated heat pump running cost = current annual cost / 0.92 / COP x electricity rate. Annual saving = current annual cost - heat pump running cost. Payback = installed cost / annual saving.
Standard or basis
Basis: transparent planning arithmetic using the visible inputs and assumptions on this page.
Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.Master's Tip
Professional note: print the input values, formula, result and date together so the calculation can be reviewed later.
Related calculators
Questions
What is the Heat Pump ROI Calculator?
The heat pump ROI calculator estimates annual savings and simple payback from current heating spend, COP, electricity price and installation cost.
Can I rely on this as professional advice?
No. Use it as a transparent planning estimate, then verify the current rule, rate, contract or official source for the decision you are making.