Heat pump running cost calculator
See how much less a heat pump costs to run than a standard electric heater for the same amount of warmth.
What this means for you
See how much this saving adds up to over several winters, and how sensitive it is to your heat pump's efficiency.
Compare heat pump efficiency
COP varies by model quality and climate — see how much difference a budget vs premium cold-climate model makes.
| Scenario | COP | Savings vs heater |
|---|---|---|
| Budget model, cold climate | 2.8 | $0 |
| Current | 3.5 | $0 |
| Premium cold-climate model | 4.2 | $0 |
A premium cold-climate heat pump costs more upfront but maintains higher efficiency in near-freezing conditions, which can be worth it in the colder parts of NZ.
Assumptions & sources
Typical heat pump COP ratings from EECA (Energy Efficiency and Conservation Authority) and manufacturer specifications.
1 July 2026
17 July 2026
Heat delivered = capacity × hours/day × season days. Electricity used = heat delivered ÷ COP (heat pump) or ÷ 1.0 (standard electric heater).
Running cost comparison only, based on your chosen capacity, usage hours, season length and efficiency.
Purchase and installation price for either heating option, and any maintenance costs over the unit's life.
Related reading
Is solar really worth it?
Solar panels cost thousands upfront — here's when the payback maths actually works in your favour, and when it doesn't.
Read article →
How does NZ stack up against Australia in residential solar?
Australia has one of the highest rooftop solar rates in the world. Here's why NZ lags behind — and whether that's changing.
Read article →Why heat pumps are so much cheaper to run
A standard electric heater converts electricity to heat at roughly a 1-to-1 ratio — every kWh of electricity becomes about 1 kWh of heat. A heat pump works completely differently: it moves existing heat from outside air into your home rather than generating it from scratch, which lets it deliver 3-4 kWh of heat for every 1 kWh of electricity it consumes. That 3-4x efficiency multiplier is why heat pumps commonly cost 60-75% less to run for the same amount of warmth.
Efficiency does drop as outdoor temperatures fall, since there's less ambient heat to extract — this is why cold-climate-rated heat pumps, which maintain higher COP in near-freezing conditions, are worth the premium in colder parts of NZ like Central Otago or inland Canterbury.
Frequently asked questions
Commonly 60-75% cheaper for the same heat output, since a typical heat pump has a COP of 3-4 (delivering 3-4 kWh of heat per 1 kWh of electricity) versus a 1-to-1 ratio for a plug-in electric heater.
Coefficient of performance — the ratio of heat output to electricity input. A COP of 3.5 delivers 3.5 kWh of heat per 1 kWh of electricity. It drops in very cold weather and varies by model quality.
