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What does the Heat pump savings and payback calculate?
When does a heat pump recover its installed cost? This calculator uses current annual heating cost, heat pump annual running cost, installed cost, rebates, and extra annual maintenance to estimate heat pump payback immediately in your browser.
With the values currently entered, the result is 7.6 years — simple payback. It also shows net installed cost, annual savings, and ten-year net saving.
How to use the Heat pump savings and payback
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Current annual heating cost
- Heat pump annual running cost
- Installed cost
- Rebates
- Extra annual maintenance
Heat pump savings and payback formula
Net installed cost ÷ annual net savings
Assumptions
- Energy prices and usage stay constant.
- Financing and equipment replacement are excluded.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
How heat pumps work and which conditions affect efficiency and system choice.
Why energy efficiency mattersUS Department of EnergyScope: General guidance; US sourceBackground for comparing energy use, operating cost, and efficiency improvements.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Heat pump savings and payback example and edge cases
When does a heat pump recover its installed cost? Let's use a concrete example, then look at the assumptions that can move the answer.
Example: A practical heat pump savings and payback scenario
For this example, use current annual heating cost of 2,800, heat pump annual running cost of 1,250, installed cost of 14,500, rebates of 3,500, and extra annual maintenance of 100. These are starting values, so replace them with numbers that match your situation.
- Current annual heating cost
- 2,800
- Heat pump annual running cost
- 1,250
- Installed cost
- 14,500
- Rebates
- 3,500
- Extra annual maintenance
- 100
Calculated result7.6 yearssimple payback
Start with simple payback. Then check net installed cost, annual savings, and ten-year net saving to understand what sits behind the main result.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the main result first. The supporting figures for net installed cost, annual savings, and ten-year net saving explain how the estimate is built.
- The method is Net installed cost ÷ annual net savings. Keep the units consistent and use values from the same time period.
Edge cases worth checking
When current annual heating cost is unusual
Energy prices and usage stay constant. Double-check this input before relying on the result.
When extra annual maintenance is uncertain
Financing and equipment replacement are excluded. Run a lower and higher value to see a useful range.
What changes the result most
Current annual heating cost
Use a current amount for current annual heating cost. Include fees or recurring costs that belong in the same figure.
Heat pump annual running cost
Use a current amount for heat pump annual running cost. Include fees or recurring costs that belong in the same figure.
Installed cost
Use a current amount for installed cost. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Current annual heating cost: 10% lower
2,5209.4 yearssimple payback
Current annual heating cost: 10% higher
3,0806.4 yearssimple payback
Heat pump annual running cost: 10% higher
1,3758.3 yearssimple payback
Common mistakes
Check current annual heating cost
Energy prices and usage stay constant. Make sure this matches the number you enter.
Keep extra annual maintenance consistent
Financing and equipment replacement are excluded. Use the same units and time period throughout the calculation.
Do not rely on one heat pump savings and payback scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
When does a heat pump recover its installed cost?
Actual tariffs, weather, equipment behavior, and fixed charges can change the bill.