Heat Pump Running Cost Calculator Trending

Compare heat pump vs gas/oil boiler running costs. Calculate payback period and annual savings.

Last updated: April 2026 · Source: GOV.UK — Boiler Upgrade Scheme

£

Current Heating Cost

£858.92/yr

Heat Pump Cost

£882.00/yr

Annual Saving

-£23.08

Payback Period

0.0 years

10-Year Net Saving

-£12,230.82

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Heat pumps extract heat from outdoor air (air source) or the ground (ground source) and deliver it to your home. They are highly efficient, producing 2.5-4 units of heat for every unit of electricity consumed. This ratio is the Coefficient of Performance (COP). A heat pump with a COP of 3 produces 3 kWh of heat for each 1 kWh of electricity used.

An air source heat pump (ASHP) typically costs £8,000-£15,000 installed, while a ground source heat pump (GSHP) costs £15,000-£35,000 including ground works. The Boiler Upgrade Scheme provides a £7,500 grant towards the cost of an ASHP or GSHP, reducing the upfront cost significantly.

Running costs depend on your electricity tariff and the heat pump's seasonal COP (SCOP). At 24.5p/kWh electricity and a SCOP of 3, the effective heating cost is 8.2p per kWh of heat — compared to 7.5p per kWh for a 90% efficient gas boiler at 6.76p/kWh gas. Heat pumps become more cost-effective on low-rate tariffs or paired with solar panels.

Example: 3-bed detached, replacing gas boiler with ASHP

  1. Heat demand: 12,000 kWh/year
  2. ASHP electricity needed (COP 3): 4,000 kWh
  3. Electricity cost: 4,000 x 24.5p = £980
  4. Previous gas cost: 12,000 / 0.9 x 6.76p = £901
  5. ASHP install cost: £12,000 minus £7,500 BUS grant = £4,500
  6. Payback vs gas: break-even depends on tariff and gas price trends

Source: GOV.UK — Boiler Upgrade Scheme

Frequently Asked Questions

What does the Heat Pump Running Cost Calculator do?
Compare heat pump vs gas/oil boiler running costs. Calculate payback period and annual savings. All calculations are performed in your browser using official UK rates and thresholds.
Does this reflect the current energy price cap?
This calculator uses representative energy prices. The Ofgem energy price cap changes quarterly — check Ofgem's website for the latest cap level applicable to your region and payment method.
Can I save money by switching tariff?
Potentially yes. The energy market offers various fixed and variable tariffs. Use a comparison site authorised by Ofgem (such as Ofgem's own comparison tool) to check if switching could save you money.