Home Heating & Cooling Costs
Heating and cooling decisions cannot be reduced to nameplate watts. A useful comparison starts with the home's current annual energy use, converts each option to useful heating or cooling delivered, and then adds climate, seasonal performance, installation cost, and the building envelope.
Work through the numbers in this order
A calculator is useful only when its inputs describe the same real-world scenario.
- 01
Build a current-cost baseline
Start with a full year of fuel and electricity use when available. Separate heating, cooling, water heating, and fixed service charges. A nameplate wattage multiplied by every hour of the season is usually not a realistic HVAC baseline.
- 02
Compare delivered heat, not input units
Electricity, gas, oil, and heat pumps use different input units and efficiencies. Compare the cost of useful heat delivered to the home. For heat pumps, use seasonal efficiency or a range of COP values rather than one rated condition for the entire winter.
- 03
Check the building before the equipment
Air leakage, insulation, ducts, controls, climate, and thermostat schedules can change comfort and energy use. Reducing the load may allow smaller equipment and can be more valuable than comparing two oversized systems.
- 04
Add installation and backup costs
A running-cost advantage is not the same as a financial payback. Include equipment, electrical or duct work, maintenance, incentives, financing, and any backup or auxiliary heat expected at cold design conditions.
Calculators
Heat Pump Savings Calculator
A heat pump moves heat instead of creating it directly. Enter your own annual heat demand, fuel pric…
HeatingHeat Pump Amps and Wattage Calculator
Heat pump capacity is heat moved, not electricity consumed. Enter the rated BTU per hour and efficie…
HeatingGas vs Electric Heating Calculator
Compare gas and electric-resistance heating on the same annual useful-heat demand. The result depend…
HeatingSpace Heater Running Cost Calculator
Electric space heaters are cheap to buy but can be expensive to run. This calculator shows the cost …
HeatingElectric Radiator Running Cost Calculator
Electric radiators turn power straight into heat, so wattage directly drives cost. Enter yours to se…
CoolingAir Conditioner Running Cost Calculator
Air conditioning can dominate summer bills. Enter your AC’s cooling capacity, efficiency, runtime, a…
HeatingWater Heating Cost Calculator
Estimate the useful heat needed to warm water, then adjust for heater efficiency and your energy rat…
HeatingTankless Water Heater Savings Calculator
Tankless water heaters avoid the standby losses of keeping a full tank hot. This calculator estimate…
HeatingSmart Thermostat Savings & Payback Calculator
ENERGY STAR says a certified smart thermostat saves the average household about 8% of heating and co…
HeatingHome Insulation Savings Calculator
Insulation cuts the energy you lose through walls, roof and floors — lowering both heating and cooli…
Inputs that can change the answer
Test a realistic range for these variables instead of relying on one best-case result.
- Current annual use
- Bills provide a stronger baseline than equipment capacity or one month.
- Seasonal efficiency
- Actual performance changes with outdoor temperature, cycling, distribution, and controls.
- Local energy prices
- Compare the applicable electricity and fuel rates while keeping fixed charges separate.
- Climate and design load
- Sizing and low-temperature performance affect comfort, auxiliary heat, and cost.
- Envelope and ducts
- Air sealing, insulation, duct leakage, and airflow can change the result before equipment is replaced.
Guides
Heat Pump vs Gas Boiler: Which Is Cheaper to Run?
The answer hinges on one ratio — your electricity price versus your gas price. Here is how to tell.
5 min readHow Much Does It Cost to Run a Space Heater All Night?
A common worry with an easy, exact answer once you know the wattage and your rate.
7 min readTankless vs. Tank Water Heater: Real Cost Comparison
Tankless heaters save energy but cost more upfront. Here is when that trade actually pays off.
Primary guidance used for this topic
- ENERGY STAR - Heat & Cool Efficiently Building-envelope, duct, maintenance, installation, and contractor guidance.
- ENERGY STAR - Air-Source Heat Pumps Heat-pump operation and why climate, sizing, and installation matter.
Sources checked August 12, 2026. Rates, incentives, equipment, and local requirements can change.