Heat pump vs. furnace cost comparison
Heat pump vs. furnace cost comparison
$3,800 – $8,200 average heat pump cost installed
$2,000 – $5,400+ average furnace cost installed
Cost of a heat pump vs. furnace
Choosing the right heating system for your home can help keep you comfortable and lower your monthly energy costs. The best choice for you will depend on your location, home size, and personal preferences. Heat pumps and furnaces both have advantages and disadvantages, which we'll cover in this article.
| Feature | Heat pump | Furnace |
|---|---|---|
| Initial cost | $3,800 – $8,200 | $2,000 – $5,400+ |
| Cost to run | $40 – $160 per month | $30 – $200 per month |
| Operation | Forced air, normally with ducts but sometimes ductless | Forced air, directly heated and distributed through ducts and vents |
| Size | Smaller on average | Larger on average |
| Lifespan | 10 – 15 years | 15 – 30 years |
| Air quality | Maintains humidity and filters allergens | Removes humidity and can circulate dust and allergens |
Initial cost
The initial cost of installing a heat pump or furnace can vary widely depending on the size, fuel type, brand, and efficiency level.
A heat pump costs $3,800 to $8,200 with installation, depending on the type and size. A mini-split costs less than a traditional air-source unit. Geothermal or solar heat pumps are the most expensive options.
A furnace costs $2,000 to $5,400+ for the materials and labor if the home has existing ductwork. A gas furnace normally costs more up front than an electric unit but costs significantly less to run.
Installing new ductwork costs an extra $2,400 to $6,600. If your home doesn't have any existing HVAC ducting or vents, a ductless mini-split may cost less and work better.
Monthly cost to run
Heating a home costs $30 to $200 per month on average, depending on the fuel source, local energy prices, and the efficiency of the specific unit. A natural gas furnace is the cheapest option. However, if you use electricity, running a heat pump costs less than an electric furnace.
The cost to run an electric heat pump is $40 to $160 per month.
The cost to run a furnace is $30 to $60 per month for natural gas, $90 to $200 for propane, or $130 to $180 for electric.
Natural gas is the most cost-effective and widely available option, depending on the location.
Operation
Heat pumps and furnaces both heat air and distribute it throughout the home, but they do so in different ways:
Heat pumps use electricity to extract and transfer heat from the air, like a reverse refrigerator. This process can be reversed to cool a home during the summer. Heat pumps do not remove all humidity in a house like a furnace, and they're better for air quality because they don't burn fuel.
Furnaces directly heat air with electricity or by burning fuel, then distribute the heated air through ducts. This process removes the humidity from the air, which can be an advantage or disadvantage depending on the climate.
Size
Heat pumps are often more compact than furnaces, but this depends on the type and the size of your home. Larger homes will require more power, which may mean a bigger unit.
Furnaces can take up a lot of space, but you can install smaller units in a closet, basement, or attic. Furnaces also require a large ductwork system that extends throughout the home.
Lifespan
Regular maintenance is important for both heat pumps and furnaces. Heat pumps have more sensitive systems that require maintenance to prevent buildup. Furnaces are less complicated but require filter changes or duct cleaning to remove dust and dirt.
| System | Average lifespan | Maintenance needs |
|---|---|---|
| Heat pump | 10 – 15 years |
|
| Furnace | 15 – 30 years |
|
A yearly furnace inspection costs $70 to $130.
Furnace repair costs $75 to $150 per hour or $125 to $480 total on average.
Heat pump repair costs $70 to $200 for a tune-up or $150 to $650 for a significant repair.
Furnace vs. heat pump: pros and cons
When choosing the right heating system for your home, make sure you take into account the existing infrastructure, local fuel prices, and climate. Use the following sections to consider the pros and cons of both options:
Furnace
Furnaces—especially natural gas units—offer lower upfront costs, rapid heating, and easy installation in homes with existing HVAC systems. However, they sometimes circulate dust and allergens throughout the home and can potentially leak carbon monoxide.
| Pros | Cons |
|---|---|
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If you think a furnace is the right choice for you, check out our breakdown of the Best Furnace Brands.
Heat pump
A heat pump is an excellent choice for people who live in milder climates or can't switch to a natural gas or propane system. However, they don't last as long as furnaces and often need more maintenance and repairs.
| Pros | Cons |
|---|---|
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Furnace vs. heat pump cost factors
The cost of a furnace or heat pump depends on numerous factors, including:
Climate: In colder climates where temperatures drop below freezing during the winter, a gas furnace is more efficient. For milder locations, a heat pump will be more cost-effective.
Home size: Heat pumps are better for small homes but are not as efficient at heating large homes as a furnace.
Budget: Furnaces often have lower upfront costs, but heat pumps may be a better choice in the long run, depending on energy efficiency.
Existing infrastructure: If your home has no existing ductwork, you can either pay to retrofit it or install a ductless heat pump.
Energy efficiency: More efficient models cost more up front but may qualify for an energy efficient home improvement tax credit, and they'll save you money over time in your monthly energy costs.
Fuel availability: Research the cost and availability of different fuel types in your area. Natural gas and electricity are the most common options.
FAQs about heat pumps and furnaces
Can a heat pump replace a furnace?
Yes, you can replace a furnace with a heat pump. This will eliminate the need for separate heating and cooling systems. However, keep in mind local fuel costs and weather patterns. A heat pump may not be the right choice for a home that experiences very cold winters.
Do I have a heat pump or a furnace?
If your home has a visible outdoor unit or your thermostat has an "emergency heat" setting, you likely have a heat pump. If you only have an indoor unit or if it uses natural gas, you have a furnace instead.
Is a heat pump better than a furnace?
A heat pump is more fuel-efficient than a furnace if you live in a milder climate, and heat pumps can provide both heating and cooling. However, a gas furnace can heat a larger home more quickly than a heat pump, and furnaces can operate at lower temperatures.
Getting estimates for a heat pump or furnace
Before hiring a furnace installer or heat pump installer near you, be sure to:
Look for HVAC pros with certifications from the North American Technician Excellence (NATE) or the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE).
Read reviews on sites like HomeGuide and Google.
Get at least 3 quotes from reputable companies that include labor and material costs.
Only hire a licensed, insured, and bonded contractor.
Avoid the lowest estimates, which often signal low-quality work.
Don't make any large payments up front.
Questions to ask heat pump or furnace installers
When evaluating contractors, ask these important questions:
How much experience do you have installing heat pumps or furnaces?
Can you provide a list of testimonials from past jobs?
Which unit do you recommend for my home? Why?
How do you determine the right unit size for my home?
What's the AFUE rating of this system?
Will this qualify for any tax credits, rebates, or incentives?
Should I switch to a different fuel source?
Will I need to install a new thermostat?
Does this estimate include removal and disposal of the old unit?
What other fees or costs should I expect?
How long will the installation take?
Do you handle permits? Is that included in the quote?
What's the timeline for the installation?
Do you offer financing or payment plans?
What does the warranty cover, and how long does it last?
What maintenance will the heat pump or furnace need?
Do you offer any tune-up or maintenance plans?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.