Compare cost, an incentive you enter, and annual savings without regional assumptions or automatic incentive values.
Costs to include in the investment
Enter purchase, installation, and all directly required work as one total. This may include design, the heat source, storage, heating-system alterations, and commissioning. The calculator then subtracts only the incentive amount you enter.
How to use the calculator
Select the currency used for every money input.
Enter total purchase and installation cost.
Enter an incentive or rebate whose eligibility you have already checked.
Estimate annual savings against the previous heating system and calculate simple payback.
Simple-payback example
If a project costs 30,000 currency units and you enter an incentive of 6,000, net investment is 24,000. Annual savings of 2,400 produce a simple payback period of 10 years.
What the metric leaves out
Simple payback excludes financing cost, maintenance, repairs, price changes, residual value, and the time value of money. Annual savings is your input. Use realistic future running costs; the related running-cost calculator can estimate the heat-pump portion.
Frequently Asked Questions
What belongs in heat-pump investment cost?
Include all directly required costs such as equipment, the heat source, installation, design, storage, alterations, and commissioning. Use a complete quote rather than equipment price alone.
How do I enter an incentive?
Enter only an amount whose eligibility and value you have checked. The calculator does not know regional programs and does not determine entitlement.
How is the payback period calculated?
The calculator subtracts the incentive from project cost and divides net investment by annual savings. This is a simple, static payback period.
Where can I get a reliable annual-savings figure?
Compare realistic future full costs for both heating systems. Use consumption, efficiency or seasonal performance, and your own energy prices instead of broad averages.
Are financing and maintenance included?
No. Interest, fees, maintenance, repairs, replacement parts, price changes, and potential residual value are not included automatically.
Why is a short payback period not a guaranteed return?
The simple calculation ignores the timing and variability of future cash flows. Unexpected costs or lower savings can change the actual outcome.
