Evaluate how long a geothermal heat pump investment may take to recover its net upfront cost. Enter the installed price, confirmed incentives, expected annual savings, ongoing cost difference, and an optional energy-price growth assumption. The calculator reports simple payback as the primary result and also shows first-year net benefit and a 20-year undiscounted cash surplus. This is a planning estimate, so use contractor quotes and a project-specific energy model whenever possible.
A shorter payback means the initial net cost is recovered sooner under the entered first-year savings. The 20-year figure adds growing annual benefits without discounting, taxes, financing, or replacement costs.
Planning estimate only. Simple payback ignores the time value of money; obtain engineering, tax, and financing advice before committing capital.
Using $28,000 installed cost, $9,000 incentives, $2,200 annual savings, and $180 annual operating cost gives a net cost of $19,000, a first-year benefit of $2,020, and a simple payback of 9.41 years.
Yes. Enter only incentives you reasonably expect to receive; the calculator subtracts them from installed cost.
It increases future annual savings in the discounted cash-flow projection but does not change the displayed simple payback formula.
There is no positive simple payback under those inputs, and the calculator reports that condition instead of an infinite result.
No. Add those cash flows separately when evaluating a financed or tax-sensitive project.
Yes. Use the expected annual difference versus the system being replaced, including routine service and fuel where applicable.
| Variable | Meaning |
|---|---|
| Net cost | Installed cost less incentives |
| Net benefit | Annual savings less annual operating difference |
| Payback | Years to recover net cost at first-year benefit |