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Heat Pump vs Furnace

How they compare

Operating cost

Compare cost per unit of delivered heat. For gas, divide price per therm by 100,000 BTU times AFUE. For a heat pump, divide electricity price by COP and by 3,412 BTU per kWh. The operating cost calculator does this for a season. In regions with cheap electricity or expensive gas, heat pumps usually win. In regions with very cheap gas and expensive electricity, furnaces may cost less to run.

Comfort

Furnaces deliver hot air in short bursts. Heat pumps deliver warm air for longer periods, which many find more even. Variable-speed heat pumps minimize temperature swings.

Dual fuel

Many homes keep a furnace as backup. The heat pump runs down to a set outdoor temperature, often near the cost break-even, then the furnace takes over. Benefits: lower operating cost across the season, no need for large electric heat strips, and redundancy. Downsides: keeping a gas connection and its fixed fees.

Safety

Combustion appliances need venting, carbon monoxide alarms and annual inspection. Heat pumps involve no combustion but use refrigerant and high-voltage electrics; both need licensed service.

Worked example

Figures below are illustrative examples (2026-10-29), not quotes or guarantees.

Gas at $1.20/therm in a 96 percent furnace costs about $12.50 per million BTU. Electricity at $0.13/kWh with a heat pump at COP 2.5 costs about $15.24 per million BTU; at COP 3.0, about $12.70. Break-even COP is about 3.05, so in this example the furnace is slightly cheaper below the temperature where COP drops under 3.

Choosing a switchover temperature

In a dual-fuel system, the switchover temperature is where the thermostat stops the heat pump and starts the furnace. To choose it, compare cost per million BTU of each source as COP changes with outdoor temperature. Look at the heat pump's COP table: if COP at 30°F is 3.1 and at 20°F is 2.6, and your break-even COP is 3.05, a switchover near 30°F would minimize cost. Some homeowners choose a lower switchover to cut emissions or gas use, accepting slightly higher cost.

Replacing an old furnace

If your furnace is near the end of its life, you can replace it with an air handler and heat pump plus electric backup, or with a new furnace paired to a heat pump. The decision depends on gas prices, whether you want to keep the gas connection, electrical capacity, and how cold your climate gets. See backup heat strips and cold-climate heat pumps.

Oil, propane and electric baseboard homes

Homes heated with oil, propane or electric baseboards often see the biggest savings from heat pumps because those sources cost more per unit of heat than natural gas in many places. For baseboard homes without ducts, ductless mini-splits are common; see ducted vs ductless.

Electrical service

A heat pump draws less power than electric resistance heat for the same output, but adding it to a home with a gas furnace adds electrical load. Most homes with a 100 A or larger service can add a heat pump; adding large strips or other electric appliances may require an upgrade. A licensed electrician should assess.

Maintenance comparison

Furnaces need annual combustion checks, filter changes, flue inspection and carbon monoxide safety. Heat pumps need filter changes, outdoor coil cleaning and periodic refrigerant and electrical checks by licensed technicians. Dual-fuel systems need both.

Emissions

A heat pump has no on-site combustion. Its emissions depend on how your grid produces electricity. In many regions, a heat pump produces fewer emissions per unit of heat than a gas furnace, especially as grids add renewable sources.

Decision checklist

• Local gas and electricity prices.
• Climate and design temperature.
• Furnace age and condition.
• Electrical panel capacity.
• Comfort preferences.
• Interest in cutting combustion.

Use the size calculator and the operating cost calculator to frame the conversation with your contractor.

Comfort feel

Furnaces deliver short bursts of hot air, often 120°F or more at the register, then shut off. Heat pumps deliver cooler air for longer, which some people notice as a draft at first. Most households adjust within a few weeks, and the steadier temperature can feel more even throughout the day. Good duct design and correctly placed registers reduce any draft feeling.

Fuel price sensitivity

The cheaper option depends on local electricity and fuel prices and on the heat pump's COP in your climate. When gas is cheap and electricity is expensive, a furnace may cost less to run on the coldest days, which is why dual-fuel systems exist. Use our operating cost calculator with your own prices for a rough comparison.

Reliability and redundancy

A furnace and a heat pump each have their own failure points. Homes with both have a built-in backup if one stops working. All-electric homes rely on backup strips for redundancy, so confirm that the backup capacity is enough to keep the house above freezing during a repair.

Maintenance

Furnaces need annual combustion and venting checks and carbon monoxide alarms. Heat pumps need coil cleaning, refrigerant checks and outdoor unit care.

Ventilation

Removing a gas furnace also removes combustion venting needs, which can free up space.

Comfort differences day to day

Furnace supply air often feels hot at the register; heat pump air feels warm. Many households notice longer, quieter run cycles with a heat pump, which can even out room temperatures when ducts are balanced. If someone in the home is sensitive to cool supply air, ask the installer about supply temperatures at design conditions before you choose a full replacement.

FAQ

Should I replace a working furnace?

Many add a heat pump and keep the furnace as backup.

Which lasts longer?

Furnaces often last longer because they run only in winter.

Do I still need CO alarms?

Yes, if any fuel-burning appliance remains.

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