Heat Pump Cost Calculator
Compare what a heat pump would cost to run against your current fuel, how much heat comes from backup, and whether keeping your furnace as a hybrid backup saves more.
Heating oil in Connecticut, winter (Oct–Mar)
Save about $1,319 per winter
Cold-climate heat pump $1,356 vs heating oil $2,675
- Seasonal COP
- 3.1
- Heat from backup
- 0.0%
- Electricity used
- 4,809 kWh
Add an installed cost to see a simple payback.
Keep your furnace as backup (hybrid)
Your existing furnace is cheaper to run below about -10°F outdoors; the heat pump is cheaper above it. Running both this way costs about $1,356 per winter (saves $1,319 than heating oil alone).
Cost by fuel
| Cold-climate heat pump (selected) | $1,356 | 4,809 kWh · $0.282/kWh · seasonal COP 3.1 | |
|---|---|---|---|
| Natural gas | $1,421 | 631 therms · $2.25/therm · AFUE 0.8 | |
| Heating oil (selected) | $2,675 | 439 gallons · $6.094/gal · AFUE 0.83 | |
| Propane | $2,920 | 690 gallons · $4.233/gal · AFUE 0.8 | |
| Electric baseboard | $4,171 | 14,791 kWh · $0.282/kWh · 100% |
The federal 25C heat pump tax credit ended for systems placed in service after December 31, 2025.
Assumptions
- Home: 2,000 sq ft, average insulation.
- Weather: 5,047 heating degree days for Connecticut (NOAA 1991–2020 normals, winter (Oct–Mar)).
- Useful heat needed: 50 million BTU.
- Heating oil: $6.094/gal (EIA Connecticut average, week of Oct 12, 2026).
- Propane: $4.233/gal (EIA Connecticut average, week of Oct 12, 2026).
- Natural gas: $2.25/therm (EIA Connecticut, latest month (May 2026)).
- Electricity: $0.282/kWh (EIA Connecticut 12-month average to Jul 2026).
Estimates only, based on average prices and typical weather. Your actual cost depends on your home, equipment, usage and local supplier. Not financial or engineering advice.
How cold weather affects heat pump efficiency
A heat pump moves heat instead of making it, so its efficiency (COP) falls as the outdoor temperature drops. We split each state's heating season into 5°F temperature bands, apply a COP for each band, and use electric backup below the unit's cutoff temperature. Cold-climate models hold their efficiency to lower temperatures.
Federal tax credit
The federal 25C tax credit ended for systems placed in service after December 31, 2025. Check your state energy office and utility for current rebates.
Frequently asked questions
How much does it cost to run a heat pump?
It depends on your electric rate, home and climate. The calculator estimates the kWh a heat pump uses by weather band and multiplies by your state's average electricity price.
Is a heat pump cheaper than oil or propane?
Often, but not always. It depends on the electricity price against the fuel price. Choose your current fuel above to see the difference for your state.
What is a hybrid system?
A hybrid keeps your existing furnace. The heat pump runs when it is cheaper, and the furnace takes over below a switch temperature that depends on your fuel and electricity prices.
Is there a federal tax credit for heat pumps?
The federal 25C tax credit ended for systems placed in service after December 31, 2025. State, utility and income-based rebates may still apply; check your state energy office.
Does the estimate include installation?
Only if you enter an installed cost. Then we show a simple payback in years, which ignores rebates, financing and fuel price changes.