Heat Pump Savings Calculator
Compare heat pump vs gas furnace costs and estimate your savings
Your Climate & Current System
Virginia, North Carolina, Tennessee
Energy Star certified
Energy Usage & Costs
Average home: 60-100 MMBTU/year
Savings Analysis
$1,200
$1,143
$57
5% less
4.7 tons/yr
40% reduction
$12,000
-$2,000 tax credit
$10,000
N/A
15-Year Analysis
$857
-$10,000
$-9,143
Efficiency Comparison
COP: 3.08 (delivers 3.1x electricity input as heat)
COP (Coefficient of Performance): Measures heat output per unit of electricity. A COP of 3.0 means 3 kWh of heat for every 1 kWh of electricity.
HSPF (Heating Seasonal Performance Factor): Measures total heating output in BTU divided by electricity in watt-hours over a heating season.
2025 Federal Tax Credit: 30% of installation cost up to $2,000 for Energy Star certified heat pumps. Check state/utility rebates for additional savings.
How to Use the Heat Pump Savings Calculator
Enter Your Current Heating System
Select your existing heating type (gas furnace, oil, propane, or electric resistance) and its efficiency rating. Include your annual heating fuel costs from utility bills.
Choose Your Climate Zone
Select your climate zone from mild to cold. This affects heat pump efficiency calculations, as performance varies with outdoor temperature. Cold-climate heat pumps work well even in northern regions.
Select a Heat Pump Type
Compare standard air-source, high-efficiency, cold-climate, and geothermal options. Each has different upfront costs and efficiency ratings (COP). The calculator shows installation cost estimates.
Review Savings and Payback Period
View your estimated annual savings, payback period, and 15-year total savings. See the federal tax credit amount (30% up to $2,000) and compare CO2 emissions between systems.
Pro tip: Your data is processed entirely in your browser. Nothing is sent to any server, ensuring complete privacy.
Understanding Heat Pump Efficiency
Heat pumps are one of the most efficient heating technologies available today. Unlike furnaces that generate heat by burning fuel, heat pumps move existing heat from outside air (or ground) into your home. This fundamental difference makes them 2-4 times more efficient than traditional heating systems.
How Heat Pump Efficiency Works
Heat pump efficiency is measured by the Coefficient of Performance (COP), which represents the ratio of heat output to electricity input. A COP of 3.0 means the heat pump delivers 3 units of heat for every 1 unit of electricity consumed.
- COP 2.5-3.0: Standard air-source heat pumps in moderate climates
- COP 3.0-4.0: High-efficiency models in mild climates
- COP 4.0-5.0: Geothermal heat pumps (year-round)
Heat Pump Types Compared
Standard Air-Source: $8,000-$12,000 installed. Works well in mild to moderate climates. May need backup heat below 30°F.
High-Efficiency Air-Source: $10,000-$15,000 installed. Energy Star certified with 10+ HSPF rating. Better cold weather performance.
Cold-Climate Heat Pump: $12,000-$18,000 installed. Designed for northern climates, effective down to -15°F or lower.
Geothermal: $20,000-$35,000 installed. Highest efficiency year-round (COP 4-5). Ground loop lasts 50+ years. Best for new construction or major renovations.
2025 Heat Pump Incentives
- Federal Tax Credit: 30% of installation cost up to $2,000 for Energy Star certified heat pumps
- State Rebates: Many states offer $500-$5,000 additional rebates
- Utility Programs: Local utilities may offer rebates, financing, or rate incentives
- Income-Qualified Programs: Low-income households may qualify for free or subsidized installations
When Heat Pumps Make Sense
Heat pumps typically provide the best savings when replacing older, inefficient heating systems or when electricity rates are reasonable compared to gas prices. The calculator above helps you determine your specific payback period based on your climate, energy costs, and current system.
- Replacing an old gas furnace (80% AFUE or less)
- Replacing oil or propane heating (high fuel costs)
- Areas with low electricity rates (< $0.15/kWh)
- Mild to moderate climates with few extreme cold days
- Homes that also need air conditioning (heat pumps do both)
Frequently Asked Questions
Are heat pumps cheaper to run than gas furnaces?
In most climates, yes. Heat pumps are 2-4x more efficient because they move heat rather than generate it. A heat pump with a COP of 3.0 delivers 3 units of heat for every 1 unit of electricity, making it effectively 300% efficient compared to 95% for a high-efficiency gas furnace.
Do heat pumps work in cold climates?
Modern cold-climate heat pumps can efficiently heat homes down to -15°F or colder. While efficiency decreases as temperatures drop, cold-climate models maintain a COP of 2.0+ even in very cold weather. Geothermal heat pumps are unaffected by air temperature since they extract heat from the ground.
What is the federal tax credit for heat pumps in 2025?
The 2025 federal tax credit for Energy Star certified heat pumps is 30% of installation costs up to $2,000. This is a direct tax credit, not a deduction. Many states and utilities offer additional rebates ranging from $500 to $5,000.
How long does a heat pump last?
Air-source heat pumps typically last 15-20 years with proper maintenance. Geothermal heat pumps can last 25+ years for the indoor components and 50+ years for the ground loop. This is comparable to gas furnaces (15-20 years).
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