How do you calculate what a heat pump costs to run?

Divide the heat it has to move by its efficiency rating, then multiply by your electricity price. Cooling: capacity in BTU/h × cooling hours ÷ (SEER2 × 1,000) = kWh. Heating: capacity × heating hours ÷ (HSPF2 × 1,000) = kWh. The calculator does this with full-load hours derived from NOAA climate normals for your city.

Is a heat pump cheaper to run than a gas furnace?

It depends on your electricity and gas prices and your climate. A heat pump moves 2 to 4 units of heat per unit of electricity, while a gas furnace burns fuel at 80-97% efficiency. Where electricity is cheap relative to gas, the heat pump wins; choose your state, pick “Natural gas furnace” as current heating and the calculator shows the difference.

How long does a heat pump take to pay for itself?

Payback is the installed price minus rebates, divided by the yearly saving. Replacing propane, heating oil or electric baseboard heat often pays back in a few years; replacing a gas furnace takes longer and depends heavily on local prices. Enter your installer’s quote and any utility or state rebates for your own figure.

Where do the prices come from?

Electricity: U.S. EIA average residential price by state (12 months to July 2026). Natural gas: EIA residential price by state (2025). Propane and heating oil: EIA weekly residential prices (week of 2026-10-05); states without an EIA survey use the national median. Your own bill may differ because of tiers and fixed charges.

Heat pump running cost and savings calculator

Pick your city and a model (or type its ratings), tell it what you heat and cool with today, and add your installer's quote. You get the yearly cost, the saving, the payback time and a month-by-month picture.

Heat pump $721/yrYou save $516/yrSee details ↓

1. Where you live

StateCityElectricity ¢ per kWh

Adjust heating and cooling hours

Filled in from your city's climate. Change them if you run the system much more or less than usual.

Cooling hours full-load hours per yearHeating hours full-load hours per year

2. The heat pump pick a model or type its ratings

Find a model (fills in the ratings below)

SEER2 cooling efficiencyHSPF2 heating efficiencyCooling capacity BTU/hHeating capacity BTU/h

3. What it replaces

Current heatingFurnace efficiency (AFUE %)Gas price, $/thermCurrent coolingOld AC rating SEER2 (10 ≈ 15+ years old)

4. Price replace the example with your quote

Installed price, $Rebates and incentives, $ utility, state

Heat pump, per year: $721
Current system, per year: $1,238
You save per year: $516
Payback: 17.4 years
Net after 10 years: -$3,836

Cooling $422Heating $299Electricity used: 4,507 kWhSaved vs. a minimum-efficiency heat pump: $228

Estimates use the unit's rated SEER2 and HSPF2, full-load hours derived from NOAA 1991-2020 degree days, average residential electricity prices from the U.S. EIA (12 months to July 2026) and fuel prices from EIA (2025 for natural gas, week of 2026-10-05 for propane and heating oil). Very cold days that need backup heat are not modelled. Federal minimum for comparison: 14.3 SEER2 / 7.5 HSPF2.

Average monthly cost to run, by size

Typical (median-efficiency) certified model of each size, averaged over a year, at local electricity prices. Summer and winter months cost more than spring and fall.

Size	Hot and dry (Phoenix)	Hot and humid (Houston)	Mixed (Atlanta)	Cold (Chicago)	Very cold (Minneapolis)
9,000 BTU mini-split 24.0 SEER2	$18/mo	$16/mo	$17/mo	$33/mo	$34/mo
12,000 BTU mini-split 24.0 SEER2	$25/mo	$23/mo	$25/mo	$50/mo	$52/mo
18,000 BTU mini-split 22.0 SEER2	$39/mo	$35/mo	$36/mo	$69/mo	$71/mo
24,000 BTU mini-split 21.6 SEER2	$55/mo	$49/mo	$51/mo	$101/mo	$105/mo
2-ton central heat pump 18.0 SEER2	$64/mo	$58/mo	$59/mo	$114/mo	$117/mo
3-ton central heat pump 17.0 SEER2	$100/mo	$89/mo	$87/mo	$166/mo	$170/mo
4-ton central heat pump 17.1 SEER2	$136/mo	$122/mo	$124/mo	$241/mo	$248/mo

Energy prices by state51 states + DC

The calculator starts from these averages. Electricity 12 months to July 2026; natural gas 2025; propane and heating oil week of 2026-10-05.

State	Electricity ¢/kWh	Gas $/therm	Propane $/gal	Heating oil $/gal
Alabama	16.49	1.69	3.52	5.97*
Alaska	27.01	1.25	2.67*	5.97*
Arizona	15.47	1.79	2.67*	5.97*
Arkansas	13.46	1.86	2.29	5.97*
California	33.13	2.12	2.67*	5.97*
Colorado	16.55	1.08	2.39	5.97*
Connecticut	28.20	1.62	4.21	6.00
Delaware	17.96	1.54	3.67	6.04
District of Columbia	24.21	1.61	2.67*	5.97*
Florida	15.41	2.46	4.86	5.97*
Georgia	15.07	1.97	3.08	5.97*
Hawaii	43.70	5.05	2.67*	5.97*
Idaho	12.67	0.74	2.51	5.97*
Illinois	18.98	1.08	1.83	5.97*
Indiana	17.07	1.11	2.47	5.76
Iowa	14.08	1.02	1.63	5.68
Kansas	15.11	1.43	2.01	5.97*
Kentucky	13.99	1.37	2.67	5.83
Louisiana	13.07	1.68	2.67*	5.97*
Maine	29.28	1.83	3.55	5.97
Maryland	22.31	1.56	3.80	6.11
Massachusetts	30.39	2.42	3.59	6.12
Michigan	21.00	1.05	2.34	5.58
Minnesota	16.23	1.06	1.90	5.74
Mississippi	14.93	1.61	3.05	5.97*
Missouri	13.89	1.44	2.06	5.97*
Montana	13.93	0.87	1.91	5.97*
Nebraska	12.90	1.10	1.70	5.33
Nevada	13.56	1.27	2.67*	5.97*
New Hampshire	26.76	1.79	3.95	5.98
New Jersey	23.61	1.37	3.95	6.04
New Mexico	15.24	0.95	2.67*	5.97*
New York	28.36	1.70	3.67	6.23
North Carolina	14.87	1.58	3.58	5.82
North Dakota	12.53	0.92	1.61	5.97*
Ohio	18.30	1.34	2.57	5.92
Oklahoma	13.63	1.39	2.29	5.97*
Oregon	15.58	1.61	2.67*	5.97*
Pennsylvania	20.75	1.45	3.15	5.83
Rhode Island	29.39	2.09	3.82	6.12
South Carolina	15.72	1.63	2.67*	5.97*
South Dakota	14.27	0.95	1.73	5.97*
Tennessee	13.66	1.14	3.19	5.97*
Texas	16.00	1.87	3.10	5.97*
Utah	13.31	0.98	2.23	5.97*
Vermont	23.89	1.74	3.77	5.99
Virginia	16.55	1.62	3.68	5.95
Washington	14.16	1.70	2.67*	5.97*
West Virginia	15.66	1.33	2.67*	5.97*
Wisconsin	18.76	1.04	1.81	5.58
Wyoming	14.15	1.13	2.67*	5.97*

* No EIA survey for this state; national median shown.

Questions4

How do you calculate what a heat pump costs to run?: Divide the heat it has to move by its efficiency rating, then multiply by your electricity price. Cooling: capacity in BTU/h × cooling hours ÷ (SEER2 × 1,000) = kWh. Heating: capacity × heating hours ÷ (HSPF2 × 1,000) = kWh. The calculator does this with full-load hours derived from NOAA climate normals for your city.
Is a heat pump cheaper to run than a gas furnace?: It depends on your electricity and gas prices and your climate. A heat pump moves 2 to 4 units of heat per unit of electricity, while a gas furnace burns fuel at 80-97% efficiency. Where electricity is cheap relative to gas, the heat pump wins; choose your state, pick “Natural gas furnace” as current heating and the calculator shows the difference.
How long does a heat pump take to pay for itself?: Payback is the installed price minus rebates, divided by the yearly saving. Replacing propane, heating oil or electric baseboard heat often pays back in a few years; replacing a gas furnace takes longer and depends heavily on local prices. Enter your installer’s quote and any utility or state rebates for your own figure.
Where do the prices come from?: Electricity: U.S. EIA average residential price by state (12 months to July 2026). Natural gas: EIA residential price by state (2025). Propane and heating oil: EIA weekly residential prices (week of 2026-10-05); states without an EIA survey use the national median. Your own bill may differ because of tiers and fixed charges.