In this study, characteristics simulation of heat pump system is investigated for heating and cooling using sewage water as a heat source. A simulation program for preestimate operation characteristics of heat pump system is developed. The performance of this system is resolved by several variables and the characteristics which is based on actual air and sewage temperature data. The simulation results agree well with the experimental values of COP. In the analysis of system characteristics, the COP is changed between $3sim5$ in winter season for heating load, $4sim6$ in summer season for cooling load. As the results of Life Cycle Cost analysis over a 15 year life cycle, the energy cost could be reduced by 250 million won if a heat pump system was used instead of a conventional boiler and an absorbtion refrigerator on the office building.