MundoKit

Heat Pump vs Furnace Cost Calculator

Enter marginal energy prices, furnace efficiency, heat pump COP and useful heating demand. See comparable running costs and the break-even COP.

Inputs
currency/kWh
currency/unit
%
kWh

Results

Break-even heat pump COP
3.517
Heat pump running cost
666.67 currency units
Furnace fuel cost
568.67 currency units
Heat pump savings
-98.00 currency units
Furnace cost per useful kWh
0.06 currency units
Heat pump cost per useful kWh
0.07 currency units
  • Above the break-even COP the heat pump costs less for the same useful heat. Use consumption-based charges including variable delivery and taxes. Fixed standing charges are excluded.
  • No temperature switchover is inferred: that requires a supplied COP-versus-temperature performance curve and adequate heating capacity. Defrost, backup heat and auxiliary fan electricity must be reflected in your inputs. Installation costs and incentives are excluded.

Results update as you type. The share link stores your inputs after the # in the address, which is not sent to our server, but anyone you send it to can read them.

How it works

NRCan Appendix A equation 6 compares the price of useful heat from each system. Use variable bill charges including consumption-based delivery and taxes; exclude charges that remain regardless of consumption.

Furnace cost/useful kWh = fuel price ÷ (fuel kWh/unit × efficiency) Heat pump cost/useful kWh = electricity price ÷ COP Break-even COP = electricity price × fuel kWh/unit × efficiency ÷ fuel price

The EIA conversion table uses 100,000 Btu per therm and 3,412 Btu per kWh, so a therm is approximately 29.3083 kWh. One GJ is 1000 ÷ 3.6 kWh. Cubic-metre heat content is entered by the user; its example 10.36 kWh/m³ comes from NRCan Table 8. This estimates running costs only. A temperature-based switch requires actual equipment performance data, not just a rated COP.

All prefilled prices, loads and performance assumptions are hypothetical examples. Use one currency throughout. Calculations keep full precision internally; displayed energy and money are rounded, and year-end payback is shown in whole years where applicable.

Worked examples

Direct kWh fuel comparison

At electricity 0.20/kWh, fuel 0.10/kWh, furnace efficiency 90%, COP 3 and 10,000 useful kWh, the break-even COP is 1.8. Furnace cost is 1,111.11; heat pump cost is 666.67; savings are 444.44.

NRCan worked tariff example

Using electricity 0.10/kWh, gas 0.333/m³, heat content 10.36 kWh/m³ and 95% furnace efficiency gives a break-even COP of 2.956, approximately 3.0 as shown in NRCan Appendix A.

Frequently asked questions

What is COP?
Coefficient of performance is useful heat output divided by electrical input. COP 3 delivers three kWh of heat per kWh of electricity under the modeled conditions.
Should I use the whole bill divided by usage?
Use marginal consumption-based rates. Including an unavoidable standing charge overstates the savings from reducing fuel use.
At what temperature should I switch?
This tool does not infer a temperature. Compare the break-even COP with a manufacturer performance curve and confirm capacity and control requirements.
Does this include furnace fan electricity?
No separate allowance is added. Include relevant auxiliary consumption in a measured system comparison or adjust your cost inputs.
Can electricity be free?
Yes. A zero electricity rate gives zero heat pump energy cost and a zero break-even COP; other operating costs remain outside the model.

Sources

Last reviewed 2026-11-14. The method is written out above so you can check our math.