Heat Pump Cost
Comparison Calculator
A.J. LeBlanc Heating's free calculator compares heat pump operating costs against oil, propane, natural gas, and wood for Southern NH homes. Enter your own fuel prices for a personalized estimate.
See What You're Actually Paying Per BTU
Oil is priced per gallon, gas per therm, wood per cord, and electricity per kWh, making direct comparisons confusing. This calculator converts everything into the same unit (cost per 100,000 BTU of usable heat) so you can see side by side which fuel actually costs less to run. Start with the NH default prices or enter your own numbers.
Estimate Cost per 100,000 BTU of Heat
Starting values come from the latest New Hampshire Department of Energy fuel price averages, updated June 2026. Change any field to match your own bills, then click Calculate.
COP at different outdoor temperatures (optional)
How the Calculator Compares Fuels
Everything Converted to BTUs
Oil is sold by the gallon, gas by the therm, wood by the cord, electricity by the kWh. We convert each into BTUs of usable heat. One gallon of oil has 138,500 BTU; one kWh has 3,412 BTU. Then we apply your system's efficiency or the heat pump's COP to get the actual heat delivered to your home.
Why COP Matters
A heat pump doesn't burn fuel, it moves heat. A COP of 3 means you get three units of heat for every one unit of electricity. That's why heat pumps often beat oil and propane on operating cost even when electricity rates seem high. A modern cold-climate system maintains strong COP through most of a NH winter.
Adjust to Your Home
Default values come from the latest New Hampshire Department of Energy fuel price averages, last updated June 2026, and we refresh them as prices change. But no two homes are the same, so enter your actual fuel prices from recent bills and your equipment's AFUE rating for a more accurate picture. Not sure of your AFUE? Call us, we can often tell you from your equipment model number.
How a Heat Pump Compares
Heat Pump vs. Heating Oil
Most NH homes still run on oil. When prices climb, and they do, often sharply in winter, bills rise fast. A heat pump shifts most of the heating load to electricity. In homes with older oil equipment that's less efficient, the cost gap can be significant. Even with NH electricity prices, a heat pump with a COP of 2.5 to 3 typically beats oil at $3.50/gallon or higher.
Heat Pump vs. Propane
Propane often costs more per unit of energy than oil. A cold-climate heat pump multiplies the heat you get per kWh, which frequently makes it competitive with or cheaper than propane, especially during the milder shoulder months. NH homeowners switching from propane often see the strongest payback.
Heat Pump vs. Natural Gas
Natural gas is typically the cheapest fuel per BTU in NH. A high-efficiency gas furnace or boiler is hard to beat on operating cost alone. Many gas homes benefit from a hybrid approach: the heat pump handles the bulk of the season (often 60-80% of heating hours) and the gas system runs during the coldest stretches. This gives comfort, backup, and more control over long-term costs.
Heat Pump vs. Cord Wood
Wood can be very economical if you cut or source your own, but it takes time, effort, and storage space. A heat pump adds thermostat-controlled comfort for when you're sleeping, at work, or away from home. Many NH homeowners keep their wood stove for the ambiance and let the heat pump carry routine heating.
What about electric baseboard heat?
Electric resistance heat has a COP of 1, one unit of electrical energy gives you one unit of heat. A heat pump with a COP of 3 delivers three times as much heat per kWh. If you're heating with electric baseboards, the case for a heat pump is very strong from a pure operating cost standpoint. For qualifying Eversource, Liberty Electric, or Unitil installations completed from March 23 through December 31, 2026, the current higher tier is $2,000/ton when qualifying equipment replaces working, permanent electric-resistance heat used as the primary heating source and the required pre-verification is completed before installation. The incentive is subject to program approval and available funding, and per-ton incentives are limited to five tons per account.
Reduce the Installation Cost Too
The calculator shows operating cost, but installation cost matters too. Current incentives may reduce eligible project costs, subject to utility, equipment, installation-date, pre-verification, approval, and funding rules.
- For Eversource, Liberty Electric & Unitil customers: $250/ton for qualifying equipment, with per-ton incentives limited to five tons per account.
- For those utilities, the higher 2026 tier is $2,000/ton for qualifying installations completed from March 23 through December 31, 2026 that replace working, permanent electric-resistance heat used as the primary heating source, with required pre-verification completed before installation and per-ton incentives limited to five tons per account.
- NHEC members follow a separate program path with its own base, 80% offset, same-program-year weatherization bonus, and verification rules.
- New England Heat Pump Accelerator: $650 per eligible outdoor unit under 5.4 tons for an existing residential building, with a maximum of two units per dwelling; the incentive originates in a participating distributor or manufacturer transaction and remains subject to program terms and funding.
- For Eversource, Liberty Electric & Unitil customers: up to $85 for an Internet-enabled thermostat purchased and installed with a qualifying heat pump, limited to one per heat-pump zone and not more than the purchase price, subject to current 2026 program rules.
See How the Numbers Look for Your Home
The calculator gives you a starting point. We can look at your actual fuel bills, current equipment, and home, then compare the options and current incentives that may apply.
Get in Touch
Fill out the form and we'll get back to you. Usually the same business day. For emergencies, call us directly.
Contact Information
Mon-Fri: 8am-4:30pm
Evenings & Weekends: Emergency Service
24/7 Emergency Service
No heat? No hot water? Call 603-623-0412 any time.