Heat Pump Payback Calculator

Find when your investment pays for itself

Calculate payback period: Determine how many years until your heat pump savings repay installation costs and start generating pure profit.

Payback Analysis

Investment & Savings

£
System + installation + labor (before grants)
£
Boiler Upgrade Scheme or local rebates
£
Yearly savings vs current heating system

Financial Factors

3%
Energy price inflation (typical: 2-4%)
£
Servicing and maintenance annually

Payback Timeline

Cumulative savings over 25 years. Break-even when line crosses zero.

Example Calculation

Installation Cost: £8,000
Government Grant: £0
Annual Savings: £1,200
Annual Maintenance: £150
Inflation Rate: 3% per year
Lifespan: 20 years

Calculation:

1
Net Year 1 Savings = £1,200 – £150 = £1,050
2
Payback Period = £8,000 ÷ £1,050 = 7.6 years
3
Break-even Year = 2024 + 7.6 = 2031/32
4
20-Year Savings = Year 1-20 cumulative with inflation minus installation = £17,500+

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