This study aims to explore the most appropriate sizing option for a variable capacity heat pump at multiple residential applications. Two variable speed heat pump (VSHP) models were used in simulations of houses located in the mixed-humid and cold climates to determine the impact that sizing has on comfort, energy use and peak power. A single-speed heat pump sized to the cooling load was used as a reference for each home. Simulation results indicate up to 10% annual energy savings are achievable by sizing VSHPs to the heating load in cold climates, with decreasing savings in warmer climates.