Heat pump installation cost calculator
What a heat pump costs to install and run depends on home size, climate, the fuel you burn now, and local electricity prices. Enter yours below and get a low, typical and high estimate. This page does not state a typical US price because no sourced range has been verified yet.
Unverified assumptions. This result uses placeholder defaults for the items marked unverified below. Treat it as arithmetic on your inputs, not as a forecast.
At these prices the heat pump costs as much or more to run than your current system, so there is no payback. The electricity-to-fuel price ratio is the usual cause.
| Item | Low | Typical | High |
|---|---|---|---|
| Installed cost, before incentives | $11,600 | $14,500 | $18,900 |
| Running cost per year | $930 | $1,110 | $1,390 |
| Saving per year vs current | $-280 | $-0 | $190 |
| Payback | none | none | 40+ yrs |
| 15-year total, heat pump | $25,600 | $31,300 | $39,800 |
| 15-year total, current setup | $16,700 |
Low = cheapest install, best seasonal COP. High = dearest install, worst seasonal COP. The payback row is ordered the same way as the other rows. Current running cost: $1,110 a year.
Formulas used (model v0.2)
| Heat demand (kWh/yr) | floor area (m²) × zone heat demand (kWh/m²/yr) |
|---|---|
| Install cost | (size kW × cost per kW for tier + fixed cost) × range multiplier |
| Heat pump running cost | heat demand ÷ SCOP × electricity price |
| Current running cost | heat demand ÷ current efficiency × fuel price |
| Annual saving | current running cost − heat pump running cost |
| Payback (years) | (install cost − incentive) ÷ annual saving; blank if saving ≤ 0 |
| Horizon total, heat pump | net install cost (or loan payments inside the horizon) + running cost × years |
| Horizon total, current | current running cost × years. Excludes replacing the existing system. |
| Low / high | Low: cheapest install multiplier, best SCOP. High: dearest multiplier, worst SCOP. |
Assumptions and sources
| Assumption | Value | Source | Status |
|---|---|---|---|
| Heat demand, Cool | 100 kWh/m²/yr | No source yet | unverified |
| Heat pump SCOP spread | ±20% | No source yet | unverified |
| Auto-sizing | 50 W/m² | No source yet | unverified |
| Standard tier cost | 1500 $/kW | No source yet | unverified |
| Fixed install cost | 2000 $ | No source yet | unverified |
| Install multiplier, low | 0.8 × | No source yet | unverified |
| Install multiplier, high | 1.3 × | No source yet | unverified |
| Default efficiency, natural gas furnace/boiler | 90% | No source yet | unverified |
| Default price, natural gas furnace/boiler | 0.06 $/kWh of fuel | No source yet | unverified |
| Default electricity price | 0.2 $/kWh | No source yet | unverified |
| Default seasonal COP | 3 ratio | No source yet | unverified |
| Comparison horizon | 15 years | No source yet | unverified |
“Unverified” means no primary source has been inspected for that value. Values you type yourself are yours, not Teranautics data.
How the estimate works
The tool estimates the heat your home needs in a year from floor area and climate band. A heat pump delivers that heat using one unit of electricity for every SCOP units of heat. Your current system burns fuel at its own efficiency. The difference in running cost, set against the install cost, gives payback.
Install cost is size times a per-kW rate for the quality tier, plus a fixed amount, shown as a range. The range matters more than the midpoint. Quotes for the same house vary widely.
Worked example (arithmetic only)
This example uses round numbers to show every step. They are not US averages and this is not a real house.
| Home | 100 m², heat demand 100 kWh/m²/yr, so 10,000 kWh of heat a year |
|---|---|
| Heat pump | SCOP 3, electricity $0.15/kWh: 10,000 ÷ 3 × 0.15 = $500 a year |
| Current system | 90% efficient, fuel $0.08/kWh: 10,000 ÷ 0.9 × 0.08 = $889 a year |
| Saving | $889 − $500 = $389 a year |
| Install (8 kW, standard) | 8 × $1,500 + $2,000 = $14,000. Range ×0.8 to ×1.3: $11,200 to $18,200 |
| Payback | $14,000 ÷ $389 = 36 years with no incentive. Incentives and a higher fuel price are what change this. |
That result is the point of the tool. Payback is driven by the ratio of electricity price to fuel price far more than by the heat pump itself. Test that in the form by changing the electricity price.
Limits
This is a screening estimate. It does not model heat loss room by room, defrost losses, cooling use, or the cost to replace a failing existing system. Read the methodology and see how a heat pump works for why SCOP varies. Considering solar as well? Try the solar panel cost calculator.
FAQ
What does a heat pump installation cost?
It depends on system size, the quality tier of the install, and whether ductwork or electrical work is needed. The calculator returns a low, typical and high range from your inputs instead of one number.
How is the running cost calculated?
Heat demand divided by the seasonal COP, multiplied by your electricity price. The formula and every assumption sit beside the result.
When is this calculator a poor fit?
Homes with unusual heat loss, multiple heating zones, or a planned insulation upgrade. A heat-loss survey from an installer is more accurate than any web tool.
Does my data leave my browser?
No. The maths runs on your device. The shareable link encodes your inputs in the address bar, so only share it if you are comfortable with that.