1. What is the Percentage Savings Calculation?

The percentage savings calculation measures how much you save by switching from an old cost to a new cost, expressed as a percentage of the original cost. It's particularly useful for comparing heating system efficiencies.

2. How Does the Calculator Work?

The calculator uses the percentage savings formula:

Where:

• \( Old\ Cost \) — Original cost in dollars
• \( New\ Cost \) — New cost in dollars

Explanation: The formula calculates what percentage of the original cost you're saving by switching to the new option.

3. Importance of Cost Savings Calculation

Details: Calculating percentage savings helps homeowners and businesses evaluate the financial benefits of upgrading to more efficient heat pump systems compared to traditional heating methods.

4. Using the Calculator

Tips: Enter both costs in dollars. The old cost must be greater than zero. Positive results indicate savings, while negative results indicate increased costs.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good percentage savings for heat pumps?
A: Typically, heat pumps can show 20-50% savings compared to conventional heating systems, but this varies by climate and system efficiency.

Q2: Should I include installation costs in this calculation?
A: For a complete analysis, consider both installation and operational costs, though this calculator focuses on operational cost comparisons.

Q3: How does this relate to ROI calculations?
A: Percentage savings is one component of ROI. You'd also need to consider the payback period and total lifetime savings.

Q4: Can I use this for monthly cost comparisons?
A: Yes, the formula works for any time period as long as both costs cover the same period (monthly, yearly, etc.).

Q5: What if my new cost is higher than old cost?
A: The calculator will show a negative percentage, indicating increased costs rather than savings.