How Much Does It Cost to Heat a Home With a Heat Pump?
Heat pumps are an electric heating system that work differently than oil, gas, or propane furnaces. Instead of creating heat, a heat pump moves heat from the outdoor air into the home. Because of this, heat pump operating costs depend heavily on electricity rates and outdoor temperatures. Below is a breakdown of what it costs to heat a home using an air-source heat pump with clear assumptions and real numbers.
What type of heat pump this article covers
This article focuses on air-source, air-to-air heat pumps used for whole-home heating.
It does not cover:
Heat pumps that heat water for radiant floors or baseboards
Ground-source or geothermal heat pumps
Heat pump water heaters
Those systems have different costs and deserve separate breakdowns.
How heat pump heating is billed
Heat pumps run entirely on electricity. Heating cost is based on:
Electricity usage measured in kilowatt-hours (kWh)
The local electricity rate per kWh
There is no fuel delivery. Heating costs appear as part of the monthly electric bill.
Electricity rate used for calculations
All examples in this article use:
$0.20 per kWh
This matches the rate used in your electric heating article and keeps comparisons consistent.
How a heat pump works
A heat pump is an electric heating system that works by moving heat rather than creating it. Instead of burning fuel or using electric resistance to generate heat, a heat pump transfers existing heat from one place to another.
The system uses a refrigerant that circulates through a closed loop. As the refrigerant moves through the system, it absorbs heat from outside the home, is compressed to increase its temperature, and then releases that heat inside. This process repeats continuously to maintain indoor temperature.
Because a heat pump is moving heat rather than producing it directly, it can deliver more heat energy than the amount of electricity it consumes.
How heat pump efficiency is measured
Heat pump efficiency is measured using COP, or Coefficient of Performance. COP describes how much heat a system delivers compared to how much electricity it uses.
A COP of 2.5 means the heat pump delivers 2.5 units of heat for every 1 unit of electricity consumed. This is more efficient than electric resistance heat, which has a COP of about 1.0, meaning it produces one unit of heat for each unit of electricity used.
All cost examples in this article assume:
COP = 2.5, which represents a realistic average for air-source heat pumps under typical operating conditions.
Estimated seasonal electricity usage for heating
Using the same heating demand as other systems, a typical air-source heat pump may use approximately:
4,000 to 6,000 kWh per heating season
Actual usage depends on climate, home insulation, and system performance in cold weather.
Seasonal cost to heat a home with a heat pump
Lower usage example (4,000 kWh)
4,000 × $0.20 = $800 per season
Moderate usage example (5,000 kWh)
5,000 × $0.20 = $1,000 per season
Higher usage example (6,000 kWh)
6,000 × $0.20 = $1,200 per season
Average monthly cost during the heating season
Assuming a 5-month heating season, average monthly heating costs would be:
$800 ÷ 5 = $160 per month
$1,000 ÷ 5 = $200 per month
$1,200 ÷ 5 = $240 per month
Because electricity is billed monthly, heat pump costs are typically spread evenly across winter bills.
What affects heat pump heating cost
Heat pump operating costs are influenced by:
Outdoor winter temperatures
Home insulation and air sealing
System sizing and efficiency
Thermostat settings
Use of backup electric resistance heat
In very cold climates, backup heat can increase electricity usage.
What this does not include
These figures do not include:
Installation or equipment costs
Electrical service upgrades
Backup heating systems
Cooling usage during summer months
Those factors can significantly affect total ownership cost.
The bottom line
Heating a home with an air-source heat pump typically costs $800 to $1,200 per heating season when electricity is priced at $0.20 per kWh and the system operates at a COP of about 2.5. Heat pumps are often less expensive to operate than oil, propane, or electric resistance heat, but costs depend heavily on climate and system performance.
Because heat pumps and electric resistance systems both rely on electricity, we also break down electric heating costs here: How much does it cost to heat a home with electric heat?
If you’re comparing all major heating systems, we break down oil, gas, and electric heating costs here: Oil vs gas vs electric heat: which costs more to run?