Heat Pump vs Gas Furnace Cost
Compare heat pump and gas furnace running costs for your home size and climate. See which wins in your state.
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A heat pump at COP 3.0 costs roughly $65/month to heat a 1,500 sq ft home. A comparable 80% AFUE gas furnace costs $96/month at current national rates — a saving of $372/year. The advantage grows as electricity rates fall or gas prices rise.
Estimates based on 1,500 sq ft home, moderate US climate, electricity $0.13/kWh, gas $1.15/therm (EIA 2026 averages). Use the calculator below for your exact costs.
A heat pump costs roughly $0.013 per 1,000 BTU at COP 3.0 and $0.13/kWh. A gas furnace at 80% AFUE costs $0.015 per 1,000 BTU at $1.20/therm. Heat pumps are now competitive with gas in most US climates — and cheaper where electricity rates are low.
Heat Pump vs Gas Furnace Cost Calculator
Heat Pump vs Gas Furnace — Monthly Cost by Home Size (US 2026)
| Home Size | Heat Pump (COP 3.0) | Gas Furnace (80% AFUE) | Winner |
|---|---|---|---|
| Small (800 sq ft) | ~$33/mo | ~$48/mo | Heat Pump |
| Medium (1500 sq ft) | ~$65/mo | ~$96/mo | Heat Pump |
| Large (2500 sq ft) | ~$108/mo | ~$160/mo | Heat Pump |
Heat pump COP 3.0, gas 80% AFUE. Elec $0.13/kWh, gas $1.20/therm. 8 hrs/day, cold climate.
When Does a Heat Pump Beat a Gas Furnace?
At COP 3.0 and $0.13/kWh, a heat pump delivers heat at roughly $0.013 per 1,000 BTU. A gas furnace at 80% AFUE and $1.20/therm costs $0.015 per 1,000 BTU. The heat pump wins in most moderate climates and is competitive even in colder regions with modern cold-climate models.
The gap widens where electricity is cheap. In states like Washington ($0.10/kWh) and Idaho ($0.10/kWh), heat pumps cost roughly $0.010 per 1,000 BTU — making them clearly cheaper than gas. In high-gas-price states like California and Massachusetts, the advantage is even more pronounced.
The 2026 Federal tax credit covers 30% of heat pump installation costs up to $2,000, further tipping the scales. For a full breakdown by fuel type, see our gas vs electric heating comparison or try the heat pump cost calculator for your exact numbers.
Heat Pumps & Smart Controls
Pre-charged line set, DIY installation system. Heats & cools up to 750 sq ft. SEER 20, HSPF 10. Works to 5°F outdoor temp.
View on Amazon →Auto-schedules based on your habits. Compatible with gas furnaces, heat pumps, and dual-fuel systems. Works with Google Home & Alexa.
View on Amazon →Cold-climate inverter technology. 12,000–36,000 BTU options. ENERGY STAR certified. Ideal for northern states replacing gas furnaces.
View on Amazon →Designed specifically for dual-fuel systems. Automatically switches between heat pump and gas backup based on outdoor temperature for maximum savings.
View on Amazon →Portable heat pump unit — no permanent installation. Heats up to 700 sq ft. EER 12, ideal as a room-level alternative to forced-air heating.