HVAC Cost Comparison Calculator

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HVAC Cost Comparison Calculator

Compare annual heating and cooling costs for gas furnace, propane, oil, electric resistance, air-source heat pump, and ground-source heat pump systems.

sq ft
Heating — AFUE
Cooling — SEER2
Annual Cost Comparison
Heating Load: —
Cooling Load: —
Cheapest
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—
Greenest
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—
System Heating Cooling Total CO₂

    Total — 10 Year
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    About This Tool

    This calculator helps homeowners compare the annual operating costs of six common HVAC system types for heating and cooling. It accounts for your climate zone, home size, insulation quality, and local energy prices to estimate how much each system would cost to run per year. The tool also shows which system produces the lowest carbon emissions, helping you weigh both cost and environmental impact.

    Sources: EIA · DOE · PNNL

    How to Use

    1. Enter your home size, climate zone, and insulation level
    2. Select your energy price region or enter custom rates
    3. Click Compare to see costs for all six system types

    How to Use

    1. Enter your home size, climate zone, and insulation level
    2. Select your energy price region or enter custom rates
    3. Click Compare to see costs for all six system types

    Methodology

    The calculator estimates annual energy costs using heating and cooling degree-days for each IECC climate zone, combined with equipment efficiency ratings and fuel prices. Heating costs for combustion systems are calculated by dividing the heating load (in BTU) by the furnace's AFUE rating and the fuel's energy content, then multiplying by the fuel price. Cooling costs use the AC's SEER2 rating to convert cooling load to electrical consumption. Heat pump costs use temperature-binned COP modeling based on the PNNL-37127 methodology. Instead of assuming a single average COP, the calculator distributes the heating load across outdoor temperature bins and applies a different COP at each temperature. This captures the real-world efficiency drop that occurs in cold weather. Energy prices default to U.S. EIA residential averages (December 2025 data) by census region.

    Sources: EIA Electric Power Monthly · PNNL-37127 · DOE AFUE Standards

    Understanding Your Results

    Results show the estimated annual cost for each of the six system types, broken down into heating and cooling components. The system with the lowest total cost is highlighted as the "Cheapest" option, and the one with the lowest CO₂ emissions is marked as the "Greenest." The savings column shows how much more each system costs compared to the cheapest option. A system showing $0 in savings is the most affordable. Pay attention to the heating-vs-cooling cost split — in cold climates, heating dominates and the choice of heating fuel matters most; in hot climates, cooling efficiency (SEER2) matters more.

    Sources: EIA RECS · DOE Energy Saver

    Sources

    Practical Examples

    Example 1: A 2,000 sq ft home in Climate Zone 4 (Mid-Atlantic) with average insulation, using national average energy prices. Estimated annual costs: Gas furnace + AC = $2,150, Propane furnace + AC = $3,420, Oil furnace + AC = $3,180, Electric resistance + AC = $3,850, Air-source heat pump = $1,680, Ground-source heat pump = $1,290. The ground-source heat pump is cheapest with annual savings of $860 over gas and $2,560 over electric resistance. Example 2: Same home in Climate Zone 6 (Minneapolis) — colder climate with 7,500 HDD. Gas furnace + AC = $2,890, Air-source heat pump = $2,340. Even in cold climates, the heat pump can be cheaper if electricity prices are moderate relative to gas.

    Cost Saving Tips

    Enter your actual energy prices from recent utility bills for the most accurate comparison. Regional averages can differ significantly from your local rates, especially for electricity and propane. Improving insulation is often the most cost-effective upgrade regardless of system type. Moving from "Poor" to "Good" insulation can reduce heating and cooling loads by 30-40%, which lowers costs for every system equally. If you're considering a heat pump in a cold climate, look at cold-climate models (marked ccASHP in specifications) which maintain higher COP values at low temperatures and can perform well even below 0°F. Don't focus only on annual costs. A ground-source heat pump may show the lowest operating costs but requires a much higher upfront investment. Calculate the total cost of ownership over 15-20 years for a more complete picture.

    Sources: DOE Energy Saver · EIA RECS

    All calculations are performed locally in your browser. No data is sent to any server.

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    Frequently Asked Questions
    How does this calculator compare HVAC system costs?
    The calculator estimates annual operating costs by combining three factors: your home's heating and cooling loads (based on square footage, climate zone, and insulation), the efficiency of each system type (AFUE for furnaces, SEER2 for AC, COP for heat pumps), and your local energy prices. It calculates how much energy each system needs to meet the same heating and cooling demand, then multiplies by the fuel cost to get an annual dollar figure for all six system types side by side.
    Is a heat pump cheaper to run than a gas furnace?
    It depends on your climate and local energy prices. In mild to moderate climates, a heat pump typically costs 30-50% less to operate than a gas furnace because it moves heat rather than generating it, achieving effective efficiencies of 200-400%. However, in very cold climates where the heat pump COP drops below 2.0, and especially where natural gas is cheap relative to electricity, a gas furnace can be more economical. This calculator lets you compare the actual costs for your specific situation.
    What are heating and cooling degree-days?
    Degree-days measure how much and for how long the outdoor temperature differs from a comfortable baseline (typically 65°F). Heating degree-days (HDD) accumulate when it's colder than 65°F, and cooling degree-days (CDD) accumulate when it's warmer. For example, a day with an average temperature of 35°F adds 30 HDD. A location with 5,000 HDD per year needs much more heating energy than one with 2,000 HDD. This calculator uses degree-day data matched to each IECC climate zone to estimate your annual heating and cooling energy needs.
    What is COP and why does it change with temperature?
    COP (Coefficient of Performance) measures how many units of heat a heat pump delivers per unit of electricity consumed. A COP of 3.0 means the heat pump produces 3 kWh of heat for every 1 kWh of electricity used. COP drops as outdoor temperature falls because the heat pump must work harder to extract heat from colder air. At 47°F, a typical air-source heat pump has a COP around 3.5-4.0. At 17°F, it may drop to 2.0-2.5. Below 0°F, some standard heat pumps fall below 1.5. This calculator uses temperature-binned COP modeling to account for this performance variation across the heating season.
    What is the difference between an air-source and ground-source heat pump?
    An air-source heat pump extracts heat from outdoor air. It's less expensive to install but loses efficiency in extreme cold because there's less heat energy available in very cold air. A ground-source (geothermal) heat pump uses underground loops to exchange heat with the earth, where temperature stays around 50-55°F year-round. This gives it a consistently high COP of 3.5-5.0 regardless of outdoor weather, making it the most efficient option. However, the underground loop installation makes it 2-3 times more expensive upfront. The lower operating costs often pay back the difference within 7-12 years.
    What is AFUE and how does it affect heating costs?
    AFUE (Annual Fuel Utilization Efficiency) measures what percentage of a furnace's fuel energy becomes usable heat. An 80% AFUE furnace converts 80 cents of every dollar spent on fuel into heat, losing 20% up the chimney. A 96% AFUE condensing furnace wastes only 4%. Higher AFUE directly lowers your heating costs: upgrading from 80% to 96% AFUE reduces fuel consumption by about 17% for the same amount of heat. The federal minimum AFUE is 80% for non-weatherized gas furnaces and 82% for weatherized units.
    Where do the energy prices come from?
    The default energy prices come from the U.S. Energy Information Administration (EIA), using their December 2025 residential price data broken down by census region (Northeast, Midwest, South, West). You can select a region to use its average prices, or switch to custom pricing and enter your exact rates from your utility bills. Custom pricing gives the most accurate results since energy costs vary significantly even within the same region. Electricity is priced per kWh, natural gas per therm, propane per gallon, and heating oil per gallon.
    Does this calculator include installation costs or just operating costs?
    This calculator focuses on annual operating costs — what you pay each year for heating and cooling energy. It does not include upfront equipment purchase or installation costs, which vary widely by region, contractor, and home layout. For a complete financial comparison, you would also need to factor in equipment prices (a gas furnace + AC typically costs $5,000-$10,000 installed, an air-source heat pump $6,000-$12,000, and a ground-source heat pump $15,000-$30,000), equipment lifespan (15-20 years for furnaces and heat pumps, 25+ years for geothermal), and available tax credits or rebates.
    How accurate is this cost estimate?
    This calculator provides a reasonable estimate for comparing system types, typically within 15-25% of actual costs for a well-described home. The main sources of variation are: your actual energy prices versus regional averages, your home's specific insulation and air-sealing performance, occupant behavior (thermostat settings, ventilation habits), and equipment-specific efficiency curves. For the best accuracy, enter your own energy prices from recent utility bills and choose the insulation level that best matches your home. The relative ranking of systems (which is cheapest) is generally more reliable than the absolute dollar amounts.