Heat pump cost calculator: what it costs your home after the grant
Use this heat pump cost calculator to see what an air source heat pump would cost for your home, before and after the grant, and what it would cost to run against your gas, oil, LPG or electric heating. It takes under a minute. No sign-up and no personal details, and every figure shows its source and the date we checked it.
Your estimate appears here
Installed cost before and after the grant, running costs against your current heating, whether you're likely to qualify, and what could change the figures.
How much does a heat pump cost in the UK?
The government publishes the price of every air source heat pump installed with the Boiler Upgrade Scheme in England and Wales, so these are real prices, not adverts. From April to June 2026 the median install cost £12,908 before the grant. The middle half of installs cost between £11,128 and £15,627.
Why the range is so wide
Mostly size. A bigger or draughtier home loses more heat, so it needs a bigger heat pump. Median cost by size, 2025/26:
| Heat pump size | Median cost before the grant | Installs |
|---|---|---|
| 4 to 6kW | £11,494 | 4,206 |
| 6 to 8kW | £12,164 | 8,054 |
| 8 to 10kW | £12,686 | 8,526 |
| 10 to 12kW | £13,943 | 3,994 |
| 12 to 14kW | £15,365 | 2,824 |
| 14 to 16kW | £15,496 | 1,245 |
Source: DESNZ, Boiler Upgrade Scheme statistics, August 2026, tables Q1.1A and A1.3A. Checked 5 October 2026.
These prices already include 0% VAT. Installing a heat pump in a home has no VAT until 31 March 2027, and 5% from 1 April 2027. Ground source heat pumps cost much more: a median of £27,232 from April to June 2026. This calculator covers air source only.
Sources: HMRC VAT Notice 708/6 and DESNZ, as above. Checked 5 October 2026.
Against a new boiler
The government puts the average extra cost of a heat pump, compared with replacing a gas, oil or LPG boiler, at about £9,000 before any grant. The £7,500 grant cuts that gap to about £1,500, and the £9,000 grant for off-gas homes closes it.
Source: DESNZ, Boiler Upgrade Scheme 2026 to 2030 Summary Business Case. Checked 5 October 2026.
The Boiler Upgrade Scheme: who gets £7,500, and who gets £9,000
Off an air source or ground source heat pump in England and Wales.
For homes heated by oil or LPG with no mains gas connection, from 21 July 2026 until 31 March 2027.
Who qualifies
- You must own the property. That includes a second home or a home you rent out.
- You must be replacing gas, oil, LPG or electric heating.
- Tenants can't apply, but their landlord can.
- Not covered: social housing, most new builds still being built, hybrid systems (a gas boiler plus a heat pump), and homes that already had government money for a heat pump or biomass boiler.
- A finished new build with a fossil fuel boiler may qualify, and self builds can.
- Earlier insulation funding doesn't stop you.
How you get it
You don't apply yourself. An MCS certified installer checks you qualify, applies to Ofgem and takes the grant off your quote and invoice, so you never handle the money. Once they apply, they have 120 days to install the heat pump.
Sources: GOV.UK, what you can get, who can get it and the £9,000 rate. Checked 5 October 2026.
Scotland and Northern Ireland
Scotland has its own scheme. Home Energy Scotland offers a grant of up to £7,500 and an optional interest-free loan of up to £7,500, with £1,500 more for rural and island homes. It's only for homeowners who live in the home, and funding is first come, first served. Northern Ireland has no general heat pump grant, though some help exists for lower-income households.
Sources: Home Energy Scotland and Energy Saving Trust, Northern Ireland. Checked 5 October 2026.
Heat pump running costs vs gas, oil and LPG
A heat pump makes about 2.8 units of heat from each unit of electricity. That's the median measured over a year in 291 UK homes. So what matters is the price of a unit of heat, not a unit of fuel. At the October to December 2026 price cap:
| Heating | Cost of 1 kWh of heat | Typical 3-bed semi, per year |
|---|---|---|
| Heat pump | 9.4p | £800 |
| Gas boiler | 8.9p | £870, including the standing charge |
| Oil boiler | 11.0p | £940 |
| LPG boiler | 21.3p | £1,820 |
| Electric heaters | 26.3p | £2,250 |
On a standard tariff, a heat pump costs about the same as gas to run. If you disconnect gas you also stop paying the gas standing charge, about £108 a year. A heat pump tariff can cut the electricity price a lot, but these vary by supplier, so we don't put a number on them. A heat pump is cheaper to run than oil, and much cheaper than LPG or electric heaters.
It also cuts the carbon from heating your home by about 75% against gas and about 80% against oil or LPG, and that grows as the grid gets cleaner.
How we worked it out: electricity 26.32p and gas 7.97p per kWh, gas standing charge 29.68p a day (Ofgem price cap, GB average); oil 97.02p and LPG 127.16p a litre, September 2026 (Nottingham Energy Partnership); boilers 90% efficient; heat pump efficiency 2.8 (Energy Systems Catapult); 3-bed semi uses Ofgem's medium figure of 9,500 kWh of gas a year (Ofgem); carbon from the DESNZ 2026 conversion factors. Prices checked 5 October 2026, carbon 6 October 2026. Heating and hot water only.
What changes the price of an air source heat pump
The calculator starts from the typical price for a home of your size. These are the things that move your real quote up or down. We don't put numbers on them, because they depend on your home.
Size, age and layout set how much heat it loses on a cold day, and so the size of heat pump it needs.
A well insulated home needs a smaller heat pump and costs less to run. Older homes, such as a 1930s terrace, may need some insulation first.
A heat pump heats a tank of stored hot water. If you have a combi boiler now, you'll need room for a cylinder.
Heat pumps run cooler than boilers, so some radiators may need to be bigger to keep rooms just as warm.
What happens at the heat pump survey
A proper quote starts with a heat loss survey. The installer visits and measures each room, the windows, the walls and the insulation, to work out how much heat your home loses. From that they choose the size of heat pump, check which radiators need changing, and plan where the outdoor unit and the hot water cylinder will go. They also check you qualify for the grant. Their quote should then show the price with the grant already taken off.
How to choose an MCS certified installer
Only an MCS certified installer can apply for the grant. Since 28 April 2026 MCS is the only certification the scheme accepts.
- Search the official MCS register for certified installers near you.
- Get two or three quotes, each based on a heat loss survey.
- Check the grant comes off the upfront price, not later. Installers must do this.
- Ask what's included: the cylinder, radiator changes, electrical work, taking out the old boiler or oil tank, and what the warranty covers.
The MCS search is free and public. No installer pays to appear on this page.
Heat pump cost questions
How much does a heat pump cost in the UK?
From April to June 2026 the median air source heat pump installed with the Boiler Upgrade Scheme cost £12,908 before the grant, and the middle half of installs cost £11,128 to £15,627 (DESNZ). After the £7,500 grant, most gas-heated homes pay about £3,600 to £8,100.
How much is the heat pump grant?
In England and Wales the Boiler Upgrade Scheme gives £7,500 off an air source heat pump. Homes heated by oil or LPG with no mains gas connection get £9,000 until 31 March 2027. In Scotland, Home Energy Scotland offers a grant of up to £7,500 plus an optional interest-free loan. Northern Ireland has no general heat pump grant.
Is a heat pump cheaper to run than gas?
On a standard tariff, about the same. At the October to December 2026 price cap, a kWh of heat costs about 9.4p from a heat pump and 8.9p from a gas boiler. A heat pump tariff can cut the electricity price a lot, and if you disconnect gas you stop paying the gas standing charge of about £108 a year.
Is a heat pump cheaper to run than oil or LPG?
Yes. At today's prices a kWh of heat costs about 9.4p from a heat pump, 11.0p from an oil boiler and 21.3p from an LPG boiler. LPG homes see the biggest saving.
Can I get the heat pump grant if I rent my home?
No. Tenants can't apply for the Boiler Upgrade Scheme, but the landlord can, because the grant goes to the property owner. Social housing isn't covered.
Is there VAT on a heat pump?
No. Installing a heat pump in a home is zero-rated for VAT until 31 March 2027. From 1 April 2027 it is 5%.
How accurate is this heat pump cost calculator?
It gives an estimate, not a quote. It uses government figures for real installs, the Ofgem price cap and measured heat pump efficiency, and shows ranges rather than a single number. A heat loss survey by an MCS certified installer gives the real figure for your home.
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