Heat Pump vs Furnace Cost Calculator
Example: Annual heating load: 60 MMBtu · Heat pump efficiency (HSPF): 9 HSPF · Electricity rate: 0.17 $/kWh · Furnace efficiency (AFUE): 92 % · Natural gas rate: 1.4 $/therm
| Heat pump saves (per year) | $-220 |
| Heat pump annual cost | $1,133 |
| Gas furnace annual cost | $913 |
Worked example
A home needing 60 MMBtu of heat a year with a 9-HSPF heat pump uses about 6,670 kWh, costing roughly $1,134 at $0.17 per kWh. A 92% gas furnace burns about 652 therms for the same heat, costing about $913 at $1.40 per therm. Here the furnace is cheaper by about $221 a year — but flip electricity to $0.13 or gas to $2.00 and the heat pump takes the lead, which is exactly why running your own local prices matters.
Frequently asked questions
Is a heat pump always cheaper than a furnace?
No. A heat pump moves heat rather than burning fuel, so it is extremely efficient, but the winner on operating cost depends on your local ratio of electricity to gas prices. In regions with cheap electricity or expensive gas, heat pumps usually win; where gas is very cheap, a high-efficiency furnace can cost less to run.
What is HSPF and what number should I use?
HSPF, the Heating Seasonal Performance Factor, measures a heat pump's seasonal heating efficiency; higher is better. Older units sit around 7 to 8, while modern high-efficiency and cold-climate models reach 9 to 13. Use the rating on the unit you are considering, or 9 as a reasonable mid-range default.
Does this account for cold-climate performance?
The HSPF rating already reflects seasonal performance including colder hours for a given climate region, so a realistic HSPF captures most of it. In very cold areas, choose a cold-climate heat pump with a high HSPF, and remember many homes keep the furnace as backup for the coldest days.
What about the upfront cost and rebates?
This tool compares yearly running costs, not installation. Federal tax credits and rebates for heat pumps can substantially cut the purchase price, improving the total case. Weigh the annual savings shown here against the installed-cost difference to judge the full payback.