With rising energy prices and the threat of climate change, energy costs and energy savings have become a central and important part in building. Therefore it is interesting to explore different and non-conventional methods of energy conservation. Building Earth sheltered houses is such a method. Earth provides good insulation and provides the ability to both reduce the total heating needs and to reduce the maximum power demand. The aim of this study was to construct a house in Malmö and see if Earth sheltered houses can be a cost effective alternative for the construction of sustainable and energy-efficient houses. Previous studies have shown that Earth sheltered houses have reduced their power requirement with up to 25% and their use of energy with 10%. Numerical calculations in Comsol Multiphysic 4.2, was performed on a house with different degrees of earth covering. Thereafter, additional investments because of the strengthened structure to accommodate the weight of the earth have been made. Subsequently, a number of economic calculations performed for various scenarios of future energy price were made. The study shows that it is profitable with Earth sheltered houses and that a 10 cm thick layer of earth on the roof is the optimal amount.