For a heat pump, enter SEER2 (cooling) or HSPF2 (heating) for both systems, with the matching annual cost. Multiply an older SEER rating by 0.95 to approximate SEER2.
💰 Annual Savings
📊 Efficiency Improvement
Savings Breakdown
Full Calculation Table
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How to Use the Energy Savings Calculator
Choose furnace, air conditioner, or heat pump to set the correct efficiency rating unit. For a heat pump, enter SEER2 for cooling or HSPF2 for heating on both systems.
Enter the current system's efficiency rating and the proposed new system's rating, found on the equipment nameplate or spec sheet.
Enter what this specific piece of equipment currently costs to run annually, from a utility bill or energy audit.
Click Calculate Savings to see estimated annual dollar savings and percentage efficiency improvement.
The Simple Math Behind Efficiency Savings
Efficiency ratings like AFUE and SEER2 describe how much useful heating or cooling output a system delivers relative to the energy it consumes. Moving from a lower rating to a higher one means the new system needs less energy input to deliver the same output, and that relationship scales proportionally, which is the basis for this calculator's savings estimate. For furnaces, the regulatory floor sets the practical ceiling on how bad the starting point can be and how low the new rating can go, since gas furnaces manufactured since July 3, 2019 must reach 95 percent AFUE under Canada's Energy Efficiency Regulations, with exceptions for space-constrained, relocatable-building, and replacement non-condensing models. An 80 percent furnace replaced at that floor saves about 15.8 percent, and at the 96 percent default about 16.7 percent.
Why AFUE and SEER2 Work the Same Way Here
AFUE, used for furnaces, expresses the percentage of fuel energy actually converted into usable heat, with the rest lost up the flue or through other inefficiencies. SEER2, used for air conditioners and heat pumps, expresses cooling output relative to the electrical energy consumed over a cooling season. Both are efficiency ratios, so the proportional math linking old and new ratings to expected savings applies to either one. A heat pump also carries an HSPF2 rating for heating, and the same math works there, so enter either SEER2 or HSPF2 for both systems along with the annual cost of that mode, and use the HSPF calculator if you need to work out a heating rating first. Keep the rating types consistent: SEER2 runs about 5 percent below the SEER printed on older equipment, so comparing an old SEER against a new SEER2 understates the saving.
Percentage Savings vs. Dollar Savings
A given percentage improvement in efficiency doesn't translate into the same dollar amount for every home, because the percentage applies to the current annual cost baseline entered. A large efficiency jump on a system that already used relatively little energy, perhaps because the home is well-insulated or the climate is mild, delivers smaller dollar savings than the same percentage jump applied to a system burning through a much larger energy budget. At the default $1,400 baseline, an 80 to 96 percent AFUE furnace upgrade saves about $233 a year, while the same upgrade on a $3,000 baseline saves $500. If the baseline is only a guess, the annual energy cost calculator can give you a firmer number to enter.
What This Calculator Doesn't Include
This tool estimates energy savings only. It doesn't factor in the equipment and installation cost of the upgrade, which is a separate and often larger number. Pair this savings estimate with the appropriate equipment cost calculator, whether that's the furnace cost calculator, AC cost calculator, or heat pump cost calculator, and run the full picture through the HVAC ROI calculator.
Real-World Factors That Shift the Estimate
Actual savings depend on usage patterns, thermostat settings, ductwork condition, and how accurately the current annual cost figure reflects a typical year. This calculator provides a planning-level estimate based on the efficiency ratio alone, which is a reasonable starting point but not a guarantee of exact future utility bills. As a sanity check on the cooling side, Natural Resources Canada says replacing an air conditioner more than 10 years old can easily save upwards of 30 percent, in line with the roughly 28 percent this calculator returns for its 13 to 18 SEER2 default.
Frequently Asked Questions
The savings calculation compares the ratio of old to new efficiency ratings and applies that ratio to the current annual energy cost. For example, moving a furnace from 80 percent to 96 percent AFUE means the new system needs about 17 percent less fuel input to deliver the same heat output, so a $1,400 annual heating bill drops by about $233, assuming similar usage patterns and fuel prices.
Both ratings represent efficiency as a ratio, and this calculator applies the same proportional savings logic to either one, comparing current rating against new rating. AFUE for furnaces represents the percentage of fuel energy converted to usable heat, while SEER2 for air conditioners and heat pumps represents cooling output relative to electrical energy input. A heat pump's heating rating, HSPF2, works the same way, so enter matching rating types for both systems and avoid comparing an old SEER against a new SEER2.
Generally yes, in percentage terms, but the actual dollar savings also depends heavily on how much energy the system used to begin with. A large efficiency improvement on a system that already used relatively little energy delivers a smaller dollar savings than a modest improvement on a system that used a lot of energy, since the percentage applies to the current annual cost baseline.
Yes. This calculator estimates energy savings only, not the payback period or return on investment, which also depends on the equipment and installation cost. Pair this result with the appropriate equipment cost calculator and the ROI calculator to see the full financial picture before deciding on an upgrade.
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