1. What is the Cost Ratio?

The cost ratio compares the installation cost of a heat pump versus a gas furnace. It helps homeowners evaluate the upfront investment required for each heating system option.

2. How Does the Calculator Work?

The calculator uses the simple cost ratio formula:

Where:

• Heat Pump Cost — Total installed cost of heat pump system (dollars)
• Gas Furnace Cost — Total installed cost of gas furnace system (dollars)

Interpretation: A ratio >1 means the heat pump costs more, while <1 means it costs less than the gas furnace.

3. Importance of Cost Comparison

Details: Understanding the initial cost difference helps in making informed decisions about heating system investments, though operating costs and efficiency should also be considered.

4. Using the Calculator

Tips: Enter the total installed costs for both systems in dollars. Use actual quotes for accurate comparisons. Both values must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What costs should be included?
A: Include equipment, installation, ductwork modifications, and any necessary electrical/gas line upgrades for both systems.

Q2: What is a typical cost ratio range?
A: Ratios typically range from 0.8 to 1.5, with heat pumps often being more expensive initially but potentially cheaper to operate.

Q3: Should I only consider upfront costs?
A: No, also consider operating costs, efficiency, lifespan, and available rebates/incentives for a complete comparison.

Q4: How does climate affect this comparison?
A: In colder climates, heat pumps may require supplemental heating, affecting both installation and operating costs.

Q5: Are there other factors to consider?
A: Yes, including energy prices in your area, system efficiency ratings, maintenance costs, and environmental impact.