By Anne Fonda
HVAC operating cost does not include the initial cost of the system. Instead, it includes the total cost of running and maintaining your HVAC system for the year.
Many factors will affect your HVAC operating costs. The variation in these factors will raise or lower your overall cost. Factors include:
The formula for calculating HVAC operating costs is C=(P∗H∗C_[rate]∗D∗M)/1000
C is the operating costs.
P is the power consumption of the HVAC system in kilowatts (kW).
H is the number of hours the system runs each day.
C_[rate] is the cost per kWh of electricity.
D is the number of days the system operates in a month.
M is the number of months the system operates each year.
You can refer to your energy bill to see what the current kWh rate is. You may need to estimate how many hours the system runs over the day or month because each month will be different. To determine the power consumption of your unit, you’ll need to know how many watts it uses.
Calculate the HVAC operating cost by multiplying the power consumption(P) by the number of hours(H) it operates per day, by the cost per kWh of electricity (C_[rate]), by the number of days it operates per month (D) by the number of months (M) it operates per year. Divide the result by 1000 to convert it to kilowatt-hours. Then add on the cost of maintenance and repairs for an estimated operating cost.
The basic formula relates to an electric HVAC system such as a central air conditioning unit or a heat pump. You would have to use another formula to calculate the operating costs of a gas furnace.
You may find it easier to use this HVAC operating cost calculator to get an idea of what your yearly operating costs are. Keep in mind, that the more accurate the numbers you put in, the closer the result will be to your actual costs.
Your HVAC system’s power consumption is a big variable in the formula above. The more energy-efficient your system is, the less power it will use to heat and cool your home. This is why it’s so important when purchasing a new system to evaluate the efficiency ratings and purchase the most efficient system you can afford.
A more energy-efficient system can help you save money in the long run, provided you maintain it to keep it operating at peak performance. View our maintenance tips to optimize the efficiency of your current system.
If you’re thinking about HVAC replacement, compare the efficiency ratings and estimate the operating costs of various systems. An HVAC professional can help you run the numbers to find the most cost-effective system for your home and budget.
Anne Fonda, Content Writer
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Kimberly Sexton, Senior Systems Engineer
Seasonal Energy Efficiency Rating (SEER) measures the efficiency of the cooling process in air conditioners and heat pumps. The higher the SEER, the more energy efficient the system.
Annual Fuel Utilization Efficiency (AFUE) measures how efficiently a furnace converts fuel to energy. The higher the AFUE rating, the more efficient the furnace.
HSPF2, or Heating Seasonal Performance Factor, measures a heat pump’s overall energy efficiency throughout the entire heating season (fall and winter). The higher the HSPF2 rating, the more efficient the heat pump.
Dealers can answer questions, help you find the right products for your home, and repair your system.
Connect with our Customer Care team about your products, warranties, and dealer concerns.
Available Monday – Friday from 7am to 5pm CST
A phone