Estimate how much you'll save each year by switching to a heat pump from gas, oil, propane or electric resistance heating — based on the unit's efficiency.
SCReviewed by Sarah Chen, Energy AnalystUpdated May 28, 2026Sources: DOE, ENERGY STAR, IRS
Savings depend on what you replace
A heat pump beats electric, propane and oil heating dramatically; versus cheap gas, the win comes from added cooling.
Quick answerA heat pump typically cuts heating costs 55–65% versus electric resistance, 45–60% versus propane and 35–50% versus oil. Against cheap natural gas the heating savings are smaller (0–20%), but the heat pump also replaces your AC.
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Your current heating
$
Roughly what you spend per year just on heating.
3.2 COP
COP 3.2 ≈ HSPF2 ~8. Cold-climate units hold COP>2 below freezing.
Estimated annual savings
$1,050
about 58% lower heating cost
New heating cost
$750
10-yr savings
$10,500
Also replaces AC
Yes
Savings vs cheap natural gas are smaller and depend on local electric vs gas prices. A heat pump also provides cooling, replacing a separate AC.
How this calculator works
1
Pick your current fuel
Electric, propane, oil or natural gas.
2
Enter annual heating cost
Roughly what you spend on heating each year.
3
Set heat pump efficiency
COP 3.2 is typical; cold-climate units stay above 2 in winter.
4
See annual savings
We compare your new heating cost to today's.
How much can a heat pump save you?
A heat pump's savings depend almost entirely on what you're replacing. Because it moves heat instead of generating it, a heat pump running at a COP of 3.2 delivers about 3.2 units of heat per unit of electricity — so it crushes electric resistance heating and beats expensive fuels like propane and oil. Against cheap natural gas, the savings are smaller and depend on your local electricity-to-gas price ratio.
Replacing
Typical heating savings
Notes
Electric resistance / baseboard
55–65%
Biggest win — same energy source, 3× more efficient
Propane
45–60%
Propane is costly per BTU
Heating oil
35–50%
Depends on oil vs electric prices
Natural gas
0–20%
Smaller; varies by local rates — but adds free cooling
Don't forget the cooling
A heat pump replaces both your furnace and your air conditioner. If your AC is also aging, the savings calculation should credit the avoided cost of a separate AC replacement — that often tips the decision, even against cheap gas. Pair your heat pump with rooftop solar and you can power your heating with your own electricity; see the Solar Payback Calculator. Ready to size and price it? Use the Size and Cost calculators.
Questions
Frequently asked questions
How much does a heat pump save per year?
It depends what you're replacing. Versus electric resistance heating, expect 55–65% lower heating costs; versus propane 45–60%; versus oil 35–50%; and versus cheap natural gas 0–20%. A heat pump also replaces your air conditioner, adding cooling-side value the raw heating numbers miss.
Does a heat pump really save money over natural gas?
Sometimes only modestly on heating alone, because natural gas is cheap per BTU. But when you factor in the avoided cost of a separate AC, available rebates and the 30% federal credit, the total picture often favors a heat pump even in gas regions — especially with a high-efficiency, cold-climate model.
What is COP and HSPF2?
COP (coefficient of performance) is how many units of heat a heat pump delivers per unit of electricity — a COP of 3.2 means 320% efficiency. HSPF2 is the seasonal heating efficiency rating used on US labels; a COP around 3.2 corresponds to roughly HSPF2 8. Higher numbers mean lower running costs.
Do heat pumps work in cold weather?
Yes. Modern cold-climate (hyper-heat) models maintain a COP above 2 even below freezing and can heat reliably down to -15°F or lower. Efficiency does drop as it gets colder, which is why correct sizing and a cold-rated model matter in northern climates.
How fast does a heat pump pay for itself?
If you're replacing electric resistance, propane or oil, annual savings of $700–$1,500 are common, giving a payback of roughly 6–12 years on the net cost after incentives. Replacing cheap gas takes longer on heating alone, but the avoided AC replacement shortens it.
Sarah has spent 12 years modeling US residential solar economics, including 4 years contributing to NREL's Distributed Generation Market Demand model. She holds a BS in Mechanical Engineering from UC Berkeley and reviews every calculator and state guide on GreenCalcs against current IRS, DSIRE and EIA data. Read our methodology →