All calculators
Home Grants & Energy2 min check

Heat Pump Cost Calculator

Get an indicative install and running cost estimate for an air source heat pump, including the Boiler Upgrade Scheme grant.

Short answer

An air source heat pump for a typical UK home costs £10,000–£14,000 installed, minus the £7,500 Boiler Upgrade Scheme grant — net £2,500–£6,500. Running costs roughly match a gas boiler at 2025 prices but drop sharply on a heat-pump tariff (Octopus Cosy, OVO Heat Pump Plus). They work best in well-insulated homes; poor insulation = oversized radiators or higher bills.
Step 1 of 20%

Your home

How it works

The estimator combines property size, current heating fuel and insulation level to size a heat pump (kW), estimate install cost, and project annual running cost using a realistic SCOP of 3.0–3.6. The £7,500 BUS grant is applied automatically. Off-gas homes (oil, LPG, electric) almost always save money; on-gas savings depend on tariff.

Worked example

3-bed semi, currently gas, EPC C: 7kW heat pump, £11,500 install − £7,500 grant = £4,000 net. Running on Cosy tariff: ~£950/yr vs £1,100 gas. Saves ~£150/yr; payback on net cost ~25 years (longer than the lifetime). Real wins are in off-gas oil/LPG homes saving £600–£1,200/year.

Who should use this

  • Off-gas homes on oil, LPG or electric heating
  • Owners doing a deep retrofit with new radiators
  • Anyone replacing a boiler in a well-insulated home

Common mistakes

  • ×Installing without a proper room-by-room heat loss survey
  • ×Keeping undersized radiators — heat pumps run cooler so radiators must be larger
  • ×Not switching to a heat-pump tariff after install
  • ×Choosing a system based on price alone rather than MCS installer reputation

Frequently asked questions

Do I need underfloor heating?

No — properly sized radiators work fine. UFH is a bonus, not a requirement.

Will it heat the house in -5°C?

Yes. UK heat pumps are rated to -7°C minimum and most operate down to -15°C, just less efficiently.

Is the £7,500 grant guaranteed?

BUS is funded to 2028 with £1.5bn allocated. First-come-first-served via MCS installers.

Related calculators