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Running cost comparison

Heat pump savings and payback calculator

See what a cold-climate heat pump would cost to run compared with your gas, oil, propane, or electric heat, using your city's weather and your province's energy prices. If it would not save money, it says so.

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What this includes

  • Monthly heating degree-days and temperatures for a weather station near you
  • A published cold-climate heat pump efficiency curve, with backup heat below −30 °C
  • Residential energy prices by province, each with its source and the date checked
  • Installed cost from our central AC calculator’s heat pump and ductless options
  • A like-for-like furnace and air conditioner comparison when yours needs replacing
  • Rebates from our finder that may apply, listed but not subtracted

What it cannot include

  • Your home’s actual insulation, air leakage, and room-by-room heat loss
  • The model your installer quotes, and how well it is sized and set up
  • Electrical panel or service upgrades, or new ductwork
  • Water heating, cooling, and time-of-use pricing
  • Future changes to energy rates

Read heat pump vs. furnace: what Canadians actually pay, price a furnace replacement, or check the rebate finder.

Common questions

Will a heat pump save money in a home heated with natural gas?
Often not much, and sometimes it costs more to run. Gas is cheap per unit of heat in most provinces, so a cold-climate heat pump's efficiency may not make up the difference in price. The federal government's average savings figure of more than $1,400 a year is for homes heated with oil, propane, or electric resistance. Gas homes may still choose a heat pump for cooling, comfort, or a hybrid setup, and this calculator says plainly when the running cost goes up.
Do heat pumps work in a Canadian winter?
Cold-climate air-source heat pumps keep heating down to about −30 °C, according to Natural Resources Canada, but they get less efficient as it gets colder. That is why this calculator works month by month from your city's climate normals, and shows a colder-running case alongside the average one.
Why isn't a rebate subtracted automatically?
Because most heat pump money is income-tested, depends on your current fuel, or is not open yet. The National Heat Pump Rebate's full rules are due November 1, 2026 and its portal opens in early 2027. The calculator lists the programs that may apply to your home and lets you enter only an amount you have confirmed.
Where do the energy prices come from?
From each province's main utility or regulator, and Statistics Canada for heating oil. Each price shows its source and the date we checked it, and a few that we could not confirm in full are marked as estimates. Propane has no default because no government or utility source publishes it by province. Replace any price with the one on your bill.
What if my furnace is at the end of its life?
Turn on the end-of-life option. The calculator then compares the heat pump with buying a new furnace and central air conditioner, which is the real choice at that point. A ducted heat pump also needs a new indoor air handler with backup heat once the old furnace goes, so that is added to its cost. The option is for ducted systems only, because whole-home ductless isn't priced here. The extra up-front cost is usually lower than when the old system still works, but it is rarely zero.

Sources

Prices are reviewed every quarter; next review by January 31, 2027. Spotted something out of date? Report an error.