Heat Pump vs. Boiler Cost Calculator (2026)
Compare annual heating cost: a heat pump vs. an oil, propane, natural-gas, or electric-resistance boiler. Honest savings or extra cost, plus the AC value-add a boiler can't match.
The short answer
Heat pumps almost always beat oil and propane boilers on running cost — typical savings run $500 to $2,500 per year. Heat pumps are usually a wash or modestly worse against cheap natural gas, especially in cold climates with pricey electricity. They beat electric-resistance boilers by 50% to 65% in every climate. The free AC the heat pump adds is a real bonus a boiler can't match.
Annual heating cost
Heat pump saves about $740/yr on heating vs your heating oil boiler.
Annual heating cost
Heating oil boiler
$1,940/yr
510.1 gallons burned · AFUE 0.85
Heat pump
$1,200/yr
7,065 kWh electric · COP 2.49
A heat pump also gives you air conditioning
Your boiler can't cool the house. A heat pump runs in reverse all summer and replaces a central AC or window units entirely. That cooling value isn't reflected in any of the heating-cost numbers above — for homes that currently heat with a boiler and add window ACs in summer, the heat pump replaces both at once.
Heads up on the install
Boiler-heated homes typically use radiators or baseboard, not ducts. Switching to a heat pump usually means a ductless mini-splitsystem — one outdoor unit with several wall-mounted indoor heads — rather than a ducted central air handler. This calculator estimates running cost only; the switch cost in the advanced input above is your installer's number, not ours.
These are ballpark estimates for comparison, not contractor quotes. Heating-oil, propane, natural-gas, and electricity prices are volatile and vary widely by state and supplier. Switching from a boiler usually requires a ductless install since radiator/hydronic homes lack ductwork. Get written quotes from licensed HVAC contractors before deciding.
How this calculator works
We estimate annual delivered heat (kWh), divide by each system's efficiency to get fuel input, then convert that fuel input into the right physical unit (gallons of oil, gallons of propane, therms of natural gas, or kWh of electricity) and multiply by your local price.
- Annual heat demand = 5.5 kWh/sq ft (Mixed + Average reference) × home size × climate factor (Hot 0.35 to Very Cold 2.30) × insulation factor (Poor 1.30 to Well 0.75).
- Boiler fuel input = heat demand ÷ AFUE. We default AFUE by fuel (Oil 0.85, Propane 0.90, Natural gas 0.90, Electric resistance 1.00) and let you edit.
- Fuel-unit conversion. Oil 40.59 kWh per gallon (138,500 BTU/gal). Propane 26.82 kWh per gallon (91,500 BTU/gal). Natural gas 29.3071 kWh per therm (100,000 BTU). Electric resistance: 1 kWh of fuel = 1 kWh of input, priced at your $/kWh.
- Heat pump electricity = heat demand ÷ seasonal COP. COP = HSPF2 ÷ 3.412 exactly. Standard tier ≈ 2.20, high-efficiency ≈ 2.49, cold-climate ≈ 2.64.
- Savings = boiler cost − heat pump cost. A negative number means the heat pump is more expensive to run at these prices, which honestly happens with cheap natural gas plus pricey electricity in cold climates.
- Simple payback (optional advanced input) divides your switch cost by annual heating savings. It ignores the added AC value, ignores future fuel-price changes, and ignores any incentives — read it as a directional comparison only.
The most important thing the heating numbers don't capture: a boiler can't cool the house. A heat pump replaces both the boiler and any window ACs in one piece of equipment. For homes that currently use both, the heat pump consolidates two systems.
Frequently asked questions
- Is a heat pump cheaper to run than an oil boiler?
- Almost always. Heating oil at typical prices (around $3.50 to $4.50 per gallon) is one of the most expensive ways to heat a US home. A high-efficiency heat pump cuts annual heating cost by 30% to 60% versus an oil boiler in most US climates, often saving $700 to $2,000 a year on a typical 2,000 sq ft home.
- Is a heat pump cheaper to run than a propane boiler?
- Usually yes. Propane runs $2.50 to $3.50 per gallon in most US markets and packs less energy per gallon than oil, so propane heating is expensive per delivered BTU. A heat pump typically saves $800 to $2,500 a year on a 2,000 sq ft home heated by propane, with the largest savings in Cold and Very Cold climates where heating demand is high.
- Is a heat pump cheaper than a natural-gas boiler?
- Often not, especially in cold climates with cheap natural gas and expensive electricity. Natural gas at $1.20 to $1.60 per therm is one of the cheapest US heating fuels per delivered BTU; the heat pump's COP advantage may or may not overcome the price gap. In milder climates or where electricity is cheap, the heat pump still wins. The calculator above shows your specific case honestly — including when the gas boiler is cheaper to run.
- Can a heat pump replace a boiler?
- Yes. A heat pump can fully replace a boiler for heating and add cooling on top. The catch is that boiler-heated homes typically use radiators or baseboard rather than ducts, so the heat pump install is usually a ductless mini-split system (one outdoor unit, several wall-mounted indoor heads) rather than a ducted central system. Some homeowners keep the boiler as backup for very cold days in a dual-fuel setup.
- Do I need ductwork to install a heat pump?
- No. Ductless mini-split heat pumps deliver heating and cooling without any ducts — they wall-mount one or more indoor air handlers connected to a single outdoor compressor via small refrigerant lines. This is the standard install for homes currently heated by radiators or baseboard. Whole-house ductless systems typically run 3 to 8 indoor heads depending on home size and layout.
- Does a heat pump add air conditioning?
- Yes — for free, as part of the same equipment. A heat pump is mechanically a reversible air conditioner: in summer it works exactly like central AC, in winter it runs in reverse. Boiler-heated homes that currently use window ACs in summer replace both the boiler and the window units with one ductless mini-split system. None of the heating-cost comparisons here capture that cooling value, but it's real and meaningful.
Disclaimer: These are estimates for comparison, not contractor quotes. Heating-oil, propane, natural-gas, and electricity prices are volatile and vary widely by state and supplier — enter your actual rates for the best result. Switching from a boiler usually requires a ductless mini-split install since radiator/hydronic homes lack ductwork; get written quotes from licensed HVAC contractors before deciding. HeatPumpLab is independently operated and not affiliated with any installer network.