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The average heat pump costs $80–$160 per month to run for combined heating and cooling, or $960–$1,920 annually, in a typical 2,000 sq ft U.S. home. Your actual cost depends on your climate, electricity rate, heat pump efficiency, and thermostat settings. Use our calculator below for a personalized estimate, then compare against gas, oil, and propane systems.
Running Cost Calculator
Find Your Electricity Rate: Check your most recent electric bill for the "per kWh" rate. The U.S. average is $0.14/kWh, but rates range from $0.08/kWh (Louisiana, Idaho) to $0.35/kWh (Massachusetts, Connecticut, Hawaii). You can also look up state averages on the EIA website.
Average Running Costs by Climate Zone
All figures assume $0.14/kWh electricity rate. Adjust proportionally for your local rate — multiply by (your rate ÷ 0.14).
Monthly Cost Breakdown by Season
Heat pump running costs swing dramatically between seasons. Understanding the monthly pattern helps you budget and spot anomalies that might indicate maintenance issues.
The biggest savings versus gas happen during shoulder months (March, April, October, November) when the heat pump runs at high COP (3.5–4.5) and gas furnaces still cycle at full blast for relatively mild temperatures.
Heat Pump vs Gas Furnace Running Costs
This is the comparison most homeowners need. The answer depends entirely on your local electricity and gas rates.
The Crossover Point: A heat pump's running costs are lower than gas in about 85% of U.S. markets. The heat pump loses only when electricity exceeds approximately $0.20/kWh AND gas is below $1.00/therm simultaneously. This combination exists in parts of the Northeast and some deregulated Texas markets.
Heat Pump vs Oil and Propane Costs
If you currently heat with oil or propane, the savings from switching to a heat pump are substantial.
For oil and propane users, the heat pump typically pays for itself in 3–5 years — before accounting for any tax credits or rebates.
Electricity Rate Impact
Since the heat pump runs entirely on electricity, your local rate has a direct, linear impact on running costs. Here's how the same system's annual cost changes across the range of U.S. electricity rates.
Time-of-Use Rates Can Help: Many utilities offer time-of-use (TOU) rate plans where electricity is cheaper during off-peak hours (typically 9 PM – 7 AM). Since heat pumps run heaviest in the morning and evening, programming your thermostat to pre-heat or pre-cool during off-peak hours can reduce costs by 10–20%.
How to Lower Your Heat Pump Running Costs
These strategies can reduce your running costs by 15–35%, saving $150–$500 per year.
Smart thermostat setbacks: Drop temperatures 2–3 °F while sleeping or away. Inverter heat pumps respond best to small setbacks — avoid large swings (5+ °F) that trigger recovery mode. Expected savings: 8–15%.
Seal air leaks and insulate. The most cost-effective improvement. Focus on attic insulation (add to R-49 or R-60), basement rim joists, and weatherstripping around doors and windows. Typical cost: $500–$3,000. Expected savings: 15–25% on heating costs.
Keep filters clean. A clogged filter increases electricity usage by 5–15%. Check monthly; replace every 1–3 months. Cost: $5–$15 per filter.
Annual professional maintenance. A technician checks refrigerant charge, cleans coils, and verifies system operation. Cost: $80–$200. Expected savings: 5–10% by maintaining peak efficiency.
Use ceiling fans to distribute air. In heating mode, reverse your ceiling fan to push warm air down from the ceiling. This lets you lower the thermostat by 1–2 °F while maintaining the same comfort level.
Switch to a time-of-use rate plan. If your utility offers TOU pricing, schedule your heating and cooling during off-peak hours. Pre-heat the house in the early morning before peak rates kick in. Expected savings: 10–20%.
Real-World Running Cost Data
Real-World Example — Burlington, VT: The O'Brien family switched from a 30-year-old oil boiler to a 3-zone Mitsubishi Hyper-Heat mini split system. Their annual heating oil bill had been $2,100–$2,700. The heat pump's annual electricity cost for heating and cooling combined is $1,080. That's an annual savings of $1,020–$1,620, with a payback period under 5 years after incentives.
Key Takeaways
The average heat pump costs $80–$160/month or $960–$1,920/year to run for combined heating and cooling. Climate zone is the biggest cost factor — zone 1 averages $41/month while zone 7 averages $104/month. Heat pumps beat gas furnace + AC on total running cost in about 85% of U.S. markets. Savings are largest for oil and propane users at $1,200–$2,000/year. Smart thermostat settings, insulation, and maintenance can cut running costs by 15–35%. Time-of-use electricity rates offer an additional 10–20% savings opportunity.