Heat Pump vs Electric Boiler Cost Calculator

How this calculator works

This calculator works in ranges rather than single figures, because real quotes, yields and tariffs genuinely vary that much. It starts from typical UK price, output and savings ranges drawn from published 2026 industry guides and official scheme documentation, then scales them by the quantities you enter and adjusts them for each choice you make below. The result is a low-to-high band that a realistic outcome is likely to fall within, not a promise of the figure you will achieve.

This is the least equal contest in home heating: an electric boiler converts each kWh of electricity into one kWh of heat, while a heat pump delivers three to four, so at 2026 electricity prices the electric boiler costs roughly to a year to heat a typical home against to for a heat pump, a gap of around to every year. The electric boiler’s sole advantages are its low installation cost at to and its tiny footprint.

Home size

Home size scales the installation estimates: larger homes need higher output units, more emitters and more labour, while flats and small houses sit below the typical three bedroom baseline that published guide prices describe. It does not scale the running cost estimates here, which follow the annual heat demand figure you enter instead.

Annual heat demand (kWh)

This is the heat your home needs over a year for space heating and hot water, not the fuel you buy. A typical UK three bedroom house needs roughly 10,000 to 14,000 kWh of heat a year; if you currently heat with gas, your annual gas kWh from your bill multiplied by about 0.85 (boiler efficiency) is a reasonable estimate of heat demand. Well insulated homes sit far lower and large or draughty ones far higher, and every running cost figure on this page scales directly with this number.

Where you live

Installation labour is not priced uniformly across the UK, with published guides putting London and South East quotes roughly 15 to 25 percent above the national average. Hardware prices are broadly national, so the difference sits mostly in labour, access and overheads.

Heat pump electricity tariff

The heat pump’s running cost depends heavily on its tariff: standard rates sit around 24.7 to 26.1 pence per kWh under the 2026 caps, while dedicated heat pump and time-of-use tariffs cut the effective rate by a quarter or more through cheap windows and smart scheduling. The comparison system’s fuel is priced at standard rates throughout, so the tariff choice here shows how much of the gap smart tariffs can close or open.

What else affects the figures

The heat pump’s higher upfront cost, to before the Boiler Upgrade Scheme grant for which electric boilers do not qualify, typically pays back in two to five years against electric boiler running costs, faster than almost any other home energy investment. Electric boilers retain a rational niche: flats with no outdoor space for a unit, listed buildings where external plant is refused, very small or rarely occupied properties, and as backup. Where an electric boiler must stay, an Economy 7 style tariff with a well insulated cylinder heated overnight softens the running costs meaningfully, and pairing with solar helps in summer. But for any home that can physically host one, the heat pump wins this comparison by a distance that no tariff engineering can bridge.

Certification, planning and grid connection

Most air source heat pump installations fall under permitted development in England, provided the unit meets size and siting rules and the MCS 020 noise assessment, which requires no more than 42 decibels at the nearest neighbouring window, a point worth early attention in terraced housing; listed buildings and conservation areas need planning advice. Use an MCS-certified installer: certification is a condition of the Boiler Upgrade Scheme grant, and the installer applies for the grant and deducts it from your invoice. Residential heat pump installations carry 0 percent VAT until March 2027, and your installer handles building regulations notification and any electrical supply checks as part of the job.