Abstract A simple algorithm to estimate the latent heating of cloud systems from their vertical hydrometer profiles is proposed. The derivation as well as the validation of the algorithm is based on output generated by a non-hydrostatic cloud model with parameterized microphysical processes. Mature and decaying stages of a GATE squall-type convective system have been tested. The algorithm-derived heating budget is in reasonable agreement with the budget predicted by the cloud model. The input to the proposed algorithm can be obtained from either a rain retrieval technique based on information from multichannel passive microwave signals or a kinematic cloud model based on information from Doppler radar wind fields and radar reflectivity patterns. Such an application would have significant implications for spaceborne remote sensing and the large-scale weather prediction data assimilation problem.