Estimate how long a heat pump project may take to recover its net upfront cost through operating savings. Enter project cost, incentives, first-year savings, maintenance, expected savings growth, and an analysis period. The result includes simple payback, cumulative net savings, and simple return on investment so you can compare project economics before financing and tax effects.
A shorter payback means the original net cost is recovered sooner under the entered cash-flow assumptions. Use the cumulative savings and ROI alongside payback because projects with similar payback periods can produce different long-term value.
This is a simple, undiscounted estimate. It excludes financing, taxes, depreciation, equipment replacement, residual value, and inflation unless reflected in your inputs.
With a $12,000 installed cost, $2,000 incentive, $1,400 first-year savings, and $150 annual maintenance, the first-year net savings are $1,250. The calculator accumulates growing savings until they recover the net cost.
They reduce the installed cost before cumulative annual net savings are compared with the investment.
No. Add financing costs to installed cost or reduce savings to model them.
The calculator compounds first-year savings by the entered annual growth rate while keeping maintenance constant.
Yes. It reports that payback is beyond the analysis period when cumulative savings remain below net cost.
No. This estimate does not discount future cash flows or include a required rate of return.
| Variable | Meaning |
|---|---|
| Net cost | Installed cost less incentives |
| Net savings | Energy savings less maintenance |
| Growth | Annual change applied to energy savings |
| Simple ROI | (Period savings − net cost) ÷ net cost |