Heat Pump: Save Big or Slow Payback?

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u/mtlprop · Joined Oct 2024

Wondering if a heat pump can out-save electric baseboards? See how fast your investment pays off and if it’s worth switching for lower heating costs!

Last update Nov 2024
  • Scenario 1: Heat Pump: Fast Payback?
  • Scenario 2: Baseboards: Steady Costs
  • Which One Is Higher (%)

Use this chart to see when a heat pump's cost savings overtake electric baseboards. Compare initial installation with monthly and yearly costs—watch for the break-even point to find how long it takes for the heat pump to start saving!

# Years from Now

Try your numbers:

Enter the upfront installation cost for the heat pump, including equipment and labor. This initial expense is key to calculating long-term savings.

A =

Enter your average monthly electricity cost for baseboard heating, averaged over winter and summer. Smoothing out seasonal highs and lows provides a clearer comparison with heat pump costs.

B =

Estimate the yearly maintenance cost for the heat pump. Regular upkeep ensures efficiency and extends the unit’s lifespan.

C =
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Time Value Assumptions

Heads Up!

If you're using Cost Basis (cb) for calculating capital gains:

Please be aware that very few countries currently use inflation-indexed cost basis. Double-check your local tax rules before publishing.

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How is Cash Value calculated?

Assuming 60% of your electric bill goes to baseboard heating, a heat pump with a 3 efficiency factor could save more. It produces 3x the heat per unit of electricity compared to baseboards.

Decisions / Expectations

(Expressions are evaluated at Year 0 only.)

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Calculations

(Expressions are evaluated at every year.)

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