Heat Cost Calculator (LCOH per VDI 2067)
Annual costs and LCOH using the annuity method
The calculator determines the levelized cost of heat (LCOH) of a supply option using the annuity method of VDI 2067. Investment, energy and operating costs are converted into comparable annual payments and related to the annual useful heat.
Annual costs and LCOH using the annuity method — all costs are converted into comparable uniform annual payments.
- Annuity factor a
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- Price-dynamic factor b
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- Total annual costs
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| Cost group | EUR/a | Share |
|---|---|---|
| Capital costs | ||
| Demand-related costs (price-dyn.) | ||
| Operation-related costs | ||
| Other costs | ||
| Total | 100 % |
Assumptions: annuity method per VDI 2067 with a single observation period T for all components — replacement investments, residual values and differing service lives are not modelled · funding as a one-off deduction from the investment (capital costs from the effective investment), operating costs as a percentage of the unfunded investment · energy costs price-dynamic via factor b, other costs without escalation. The tool is meant for quick variant comparisons and does not replace a full VDI 2067 economic analysis. Last updated: July 2026 (VDI 2067 Part 1:2012-09). VICUS Software accepts no liability for the correctness of the results.
How the calculator works
The investment is spread into uniform annual amounts via the annuity factor a. Energy costs with annual price escalation r enter via the price-dynamic factor b:
a = q · (1 + q)T / ((1 + q)T − 1) b = a · (1 − ((1 + r) / (1 + q))T) / (q − r)
Total annual costs are the sum of capital, demand-related, operation-related and other costs; divided by the useful heat they give the levelized cost of heat:
AN = a · I0 · (1 − fF) + b · KE,1 + fO · I0 + Kother LCOH = AN / Quseful
- A single observation period T applies to all components. Replacement investments, residual values and differing service lives are not modelled.
- Investment funding (rate fF) is deducted once from the investment; operating costs (share fO p.a.) refer to the unfunded investment. KE,1 is the energy cost in the first year.
- Other costs Kother are included without price escalation.
Background and theory
Cost groups, service lives, residual values and typical heat costs of different supply options are covered in the knowledge article economic assessment per VDI 2067.
For a full thermo-hydraulic network simulation with annual load profiles, heat losses and pump energy for every pipe, use VICUS Districts.