Boiler Replacement Cost Calculator

Compare old vs new boiler efficiency. Calculate installation cost, annual savings and payback period.

Source: GOV.UK — Boiler Upgrade Scheme

Konstantin Iakovlev

By Konstantin Iakovlev · Founder, Calks.uk

Last updated: · Verified against Ofgem and Ofwat 2026 price caps and tariffs

Rates verified: 28 September 2026

£
£

Install Cost

£2,800.00

Annual Saving

£213.49

Payback

13.1 years

10yr Net Saving

-£665.11

Old boiler: ~65% efficient. New A-rated: ~94%. The new boiler burns ~31% less gas for the same heat.

The saving applies to the £692.00 spent on gas units, not the standing charge, which you pay whatever the boiler. New annual bill: about £586.51. Default standing charge: 29.68p a day at the Ofgem cap from 1 October 2026.

Disclaimer

This calculator is for guidance only. It is not financial or tax advice: check anything you rely on against the official source or a qualified adviser. Rates and figures come from Ofgem and Ofwat and are reviewed for 2026. Everything is calculated in your browser; nothing you enter is sent to our servers.

How It Works

If your gas boiler is over 10 to 15 years old, replacing it with a modern condensing boiler or a heat pump can cut your energy bills sharply. A new A-rated condensing gas boiler costs £2,000 to £4,000 installed and operates at 90 to 94% efficiency compared to 60 to 80% for many older boilers. In a house still running a 25-year-old unit, that difference is worth 15 to 25% of the heating bill, or £200 to £500 a year.

The Boiler Upgrade Scheme (BUS) pays £7,500 towards an air source or ground source heat pump, £2,500 towards an air-to-air heat pump and £5,000 towards a biomass boiler in a rural, off-grid property. Until March 2027 an air or ground source heat pump earns an extra £1,500 where the home is heated by oil or LPG and has no mains gas connection. The £7,500 rate dates from October 2023, when it rose from £5,000, and the scheme covers England and Wales only. There is no EPC or insulation condition: you need to own the property, whether it is your home, a second home, a let or business premises, and to be replacing fossil fuel or electric heating such as gas, oil or LPG.

Heat pump economics work differently from a boiler. Installation typically runs £8,000 to £14,000 before the grant, leaving £500 to £6,500 to find afterwards, but the unit delivers 3 to 4 kWh of heat for every 1 kWh of electricity it draws. The homes that do best have good insulation, underfloor heating or large radiators, and no restrictive planning to work around. This calculator covers the gas route: it prices a new condensing boiler against your current one, applies the efficiency gain to the unit-rate part of your gas bill rather than the standing charge, and returns the annual saving, payback and 10-year net figure. The worked example below runs the same house through an air source heat pump by hand, and the heat pump calculator does that with your own figures.

Prices vary more by boiler type than by badge. A combi, the most common choice, comes in at £2,000 to £4,500 installed, a system boiler with a hot water cylinder at £2,500 to £5,000, and a heat-only or regular boiler at £1,800 to £3,500. A mid-range Worcester Bosch Greenstar 30kW combi lands around £2,800 to £3,500 fitted, a premium Vaillant ecoTEC plus at £3,000 to £4,500, and budget Baxi or Ideal units at £2,000 to £2,800. The boiler on its own retails for £600 to £1,800, so much of the gap is the work itself, meaning pipework alteration, a system flush, the gas safety check and removal of the old boiler. A magnetic system filter from Adey or Spirotech adds £150 to £300 and extends boiler life.

Choosing the type is a question of hot water demand rather than price. A combi heats water on demand with no tank and suits homes with one or two bathrooms and small to medium households. A system boiler keeps heated water in a cylinder and gives mains-pressure showers, which counts once two or more bathrooms might run at the same time. A heat-only or regular boiler uses a cylinder plus a cold water tank in the loft, and still earns its place in low water pressure areas, large old houses and Victorian conversions. Output sizing follows the same logic, with combis at 24 to 40 kW, system boilers at 18 to 30 kW and heat-only boilers at 12 to 25 kW.

Regulation sets a floor under all of this. A SAP assessment is mandatory on new builds and major refurbishments, and Boiler Plus 2018 requires every new gas boiler to have time and temperature controls. Combi boilers must carry one additional efficiency feature on top, chosen from weather compensation, load compensation, smart controls or flue gas heat recovery. Those controls are part of why a modern installation beats the raw efficiency figure printed on the case.

Knowing when to act is worth money. Past 15 years a replacement is usually worth costing out, and two or more breakdowns in a year turns repair against replace into a real decision. Fuel bills rising while usage stays flat point to efficiency falling away. Loud banging, kettling or gurgling suggests scale, limescale or a failing pump, and a yellow flame where it should be blue means incomplete combustion and a carbon monoxide risk, so call an engineer immediately. Water pooling under the boiler almost always means replacement. Cold radiator tops over hot bottoms is usually trapped air or sludge buildup, which a system flush may fix rather than a new boiler. Plan ahead, because an emergency replacement takes 1 to 2 days in cold weather and costs more.

Example: Replacing a 20-year-old boiler (65% efficiency)

  1. Current gas bill (65% boiler): £1,130 a year, including a £108 standing charge (29.68p a day at the Ofgem cap from 1 October 2026)
  2. Gas units: £1,022 ÷ 7.97p = 12,823 kWh, delivering 12,823 × 65% = 8,335 kWh of heat
  3. New 94% combi: 8,335 ÷ 0.94 = 8,867 kWh × 7.97p = £707 of gas, saving £315 a year (bill £815)
  4. Combi fitted: £2,800, payback £2,800 ÷ £315 = 8.9 years
  5. ASHP at SCOP 3: 8,335 ÷ 3 = 2,778 kWh × 26.32p (no VAT until 31 March 2027) = £731 a year
  6. ASHP saving vs old boiler: £1,022 − £731 = £291 a year, or £399 if you close the gas account and stop the £108 standing charge
  7. ASHP cost: about £12,000 installed less the £7,500 grant = £4,500, payback 15.5 years, or 11.3 years with no gas standing charge

Source: GOV.UK — Boiler Upgrade Scheme

Frequently Asked Questions

Is it worth replacing a 15-year-old gas boiler?
Once a gas boiler passes 10 to 15 years old, swapping it for a modern condensing model or a heat pump can cut your energy bills noticeably. A new A-rated condensing boiler runs at 90 to 94% efficiency against 60 to 80% for many older units, and costs roughly £2,000 to £4,000 fitted.
How much is the Boiler Upgrade Scheme grant worth?
The scheme pays £7,500 towards an air source or ground source heat pump, up from £5,000 in October 2023, plus £1,500 more until March 2027 for homes heated by oil or LPG with no mains gas. It also pays £2,500 for an air-to-air heat pump and £5,000 for a biomass boiler in a rural off-grid home, and covers England and Wales only. There is no EPC or insulation requirement: you must own the property, which can be a let, a second home or a business, and be replacing fossil fuel or electric heating. Installation typically costs £8,000 to £14,000 before the grant, so £500 to £6,500 is left to find.
Should I fit a combi or a system boiler?
A combi heats water on demand with no tank and suits one or two bathroom homes and small to medium households, sized at 24 to 40 kW. A system boiler stores heated water in a cylinder and gives mains-pressure showers, which matters where two or more bathrooms may run at once, sized at 18 to 30 kW. Heat-only boilers, at 12 to 25 kW, still suit low pressure areas and Victorian conversions.
How long does a new boiler take to pay for itself?
Replacing a 25-year-old boiler cuts 15 to 25% off the heating bill, worth £200 to £500 a year for a typical home. In the worked example, a 20-year-old boiler at 65% efficiency costs £1,130 a year to run, £108 of it the standing charge. A 94% efficient replacement burns 31% less gas, bringing the bill to £815, a saving of £315. Against a combi fitted for £2,800, that is a payback of 8.9 years.
What are the warning signs that a boiler is failing?
Banging, kettling or gurgling usually means scale, limescale or a failing pump. A yellow flame where it should be blue signals incomplete combustion and a carbon monoxide risk, so stop and call an engineer. Two or more breakdowns in a year, or bills climbing while usage stays flat, both point to replacement. Water on the floor under the boiler is close to decisive. Cold radiator tops with hot bottoms is more often trapped air or sludge.