Free Heat Pump Tool

Heat Pump vs Gas Furnace Cost Calculator

Compare the annual running cost of a heat pump against a gas furnace for your home.

✓ 100% free · no signup✓ Based on US DOE / ENERGY STAR✓ Instant results

Heat pump vs gas furnace: the real comparison

A gas furnace makes heat by burning fuel (80–97% efficient). A heat pump moves heat and runs at 250–400% efficiency — but it runs on electricity, so the cheaper-to-run winner depends on local energy prices.

Heat pumpGas furnace
Heating + coolingBoth in oneHeat only (needs AC)
Efficiency250–400% (COP)80–97% (AFUE)
Upfront costHigherLower
EmissionsNone on-siteCombustion
Deep coldNeeds cold-climate model / backupStrong
IncentivesState/utility rebatesMinimal

When each wins

Choose a heat pump if you also want air conditioning, electricity is moderately priced, or you want rebates and lower emissions. Stick with gas if natural gas is very cheap where you live and you face extreme winters.

Hybrid (dual-fuel) systems

You don't have to choose. A dual-fuel system pairs a heat pump with a gas furnace: the efficient heat pump handles mild weather and the furnace kicks in on the coldest days. It's a popular best-of-both option in cold regions.

Frequently asked questions

Is a heat pump cheaper to run than a gas furnace?

It comes down to your local electricity-to-gas price ratio and climate. The calculator above gives your specific answer. Heat pumps also replace your AC and emit nothing on-site.

Can I keep my furnace as backup?

Yes — a dual-fuel/hybrid setup uses the heat pump most of the year and the furnace only on the coldest days, common in cold climates.

Do heat pumps work below freezing?

Modern cold-climate heat pumps keep heating efficiently well below 0°F. Below the unit's balance point, backup heat assists — see our balance point calculator.

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⚠️ Rule-of-thumb estimate, not a substitute for a professional Manual J load calculation. Based on US DOE / ENERGY STAR guidance.