A thermoeconomic performance analysis based on a new kind of optimization criterion has been performed for a two stage endoreversible combined heat pump cycle model. The optimal performances and design parameters that maximize the objective function (heating load per unit total cost) are investigated. The optimal temperatures of the working fluids, the optimum performance coefficient, the optimum specific heating load and the optimal distribution of the heat exchanger areas are determined in terms of technical and economical parameters. The effects of the economical parameter on the global and optimal performances have been discussed. (C) 2000 Elsevier Science Ltd. All rights reserved.