💰 Annual Operating Cost
📈 Monthly Average
Cost Breakdown
Full Calculation Table
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How to Use the HVAC Operating Cost Calculator
Choose furnace, air conditioner, or heat pump, since each has a different typical efficiency basis and fuel type.
Choose the equipment output capacity in BTU/hr, matching the actual equipment being estimated.
Enter estimated annual run hours and the local fuel or electricity rate, ideally from a recent utility bill.
Click Calculate Operating Cost to see the estimated annual and monthly average energy cost.
The Four Variables That Determine Operating Cost
HVAC operating cost comes down to four factors multiplied together: how much output the equipment delivers, how efficiently it converts input energy into that output, how many hours it runs each year, and the price paid per unit of energy consumed. Change any one of these and the total shifts proportionally, which is why the same piece of equipment can cost very different amounts to run in two different homes. At the defaults, a 60,000 BTU/hr gas furnace at 95 percent AFUE running 1,500 hours at $0.04 per kWh of gas costs about $1,111 a year, or $93 a month.
Why Run Hours Are the Hardest Variable to Estimate
Annual run hours depend on climate severity, how well the home retains conditioned air, thermostat settings and setback habits, and how many people are home during the day. The degree day calculator shows how much heating demand a location has, which is a good starting point for the climate part. A generic climate-based estimate is a reasonable starting point, but actual utility bills or a smart thermostat's usage history give a meaningfully more accurate figure for an existing home with an established usage pattern. This calculator fills in 1,500 hours for heating equipment and 500 for an air conditioner, and either can be changed.
Converting Fuel Prices to a Per-kWh Rate
The gas rate here is dollars per kWh of gas energy, not dollars per cubic metre, so a price from a gas bill needs converting first. The Canada Revenue Agency's fuel charge page uses 26.853 cubic metres of natural gas per gigajoule, which works out to about 10.3 kWh per cubic metre. A delivered price of $0.41 per cubic metre is therefore about $0.04 per kWh, and the calculator fills in that rate for gas and $0.13 per kWh for electricity.
Why a Heat Pump's Cost Estimate Comes with More Uncertainty
A furnace's efficiency stays essentially constant no matter how cold it gets outside, but a heat pump's efficiency shifts with outdoor temperature, delivering more heat per unit of electricity in milder weather and less as it gets colder. Natural Resources Canada's testing of a cold-climate heat pump measured a heating COP of about 1.5 at -21°C and about 3.0 at +5°C. This calculator uses a representative seasonal average of 2.7 for heating mode, which gives about $1,270 a year for the default 60,000 BTU/hr unit at 1,500 hours and $0.13 per kWh, but the actual cost in any given year will vary with how that winter's temperatures compare to a typical year.
Combining Heating and Cooling for a Full Picture
This calculator estimates one equipment type and mode at a time. For a home with separate furnace and air conditioner equipment, or a heat pump handling both heating and cooling, run the calculation once for each mode and add the two annual figures together for a complete yearly total. A 60,000 BTU/hr air conditioner at 14 SEER2 running 500 hours costs about $279 at $0.13 per kWh, so the default furnace and air conditioner together come to about $1,390 a year.
Using This Estimate Elsewhere
This annual operating cost figure is a direct input into several other tools on this site, including the lifecycle cost calculator, the HVAC payback calculator, and the heat pump vs furnace cost calculator. To compare fuels on the cost of the heat itself, the fuel cost comparison calculator puts them on one footing.
Frequently Asked Questions
Operating cost depends on how much output the equipment delivers, how efficiently it converts input energy into that output, how many hours it runs annually, and the price paid per unit of energy. Of these, annual run hours and local utility rates tend to vary the most from home to home and year to year, even for identical equipment.
Run hours depend heavily on climate severity, home insulation and air sealing quality, thermostat settings, and household occupancy patterns. Utility bills or a smart thermostat's usage history, if available, give a more accurate figure than a generic climate-based estimate, especially for an existing home with a known usage pattern.
A heat pump's efficiency changes with outdoor temperature, delivering more heat per unit of electricity in milder weather and less in colder weather, unlike a furnace whose efficiency stays essentially constant regardless of outdoor conditions. This calculator uses a representative seasonal average efficiency figure, but actual cost will vary somewhat with how cold a specific winter turns out to be. Natural Resources Canada's testing measured a heating COP of about 1.5 at -21°C and about 3.0 at +5°C, and this calculator uses a seasonal average of 2.7.
This calculator estimates operating cost for one selected equipment type and mode at a time. For a heat pump or a home with separate heating and cooling equipment, run the calculation once for each mode and add the results together for a combined annual estimate. For example, the default 60,000 BTU/hr furnace costs about $1,111 a year and a matching air conditioner about $279, for about $1,390 together.
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