Sensitivity analysis is crucial in building energy assessments. It is used to determine the major variables influencing building thermal performance, using both observational research and energy simulation models. This study investigates the most influential envelope design parameters on the thermal performance of a typical residential building in Budapest, Hungary. Sensitivity analysis is used in conjunction with the IDA-Indoor and Climate Energy (IDA-ICE 4.8) simulation tool to assess the effects of 33 envelope design parameters for energy consumption and carbon dioxide concentrations. The input parameters include thickness, materials, density, specific heat and thermal conductivity of the basement, exterior floor, interior floor, exterior wall, interior wall, roof, ground slab, glazing type, and infiltration rate. The results show that exterior floor materials have the biggest impact on annual delivered energy for heating and cooling, whereas the density of all structural elements and thickness of the basement, exterior floors, interior floors, and walls have minimal effects on energy consumption. It is also shown that the impact of all investigated parameters is not sensitive to the carbon dioxide concentration in the building. The authors consider that the findings of the paper assist designers to assess the performance of existing buildings and more efficiently generating alternative solutions in the energetic retrofitting of existing and energy design of new residential buildings.