Compare a whole-home heat pump against a gas furnace and air conditioner over the life of the system — upfront cost, annual operating cost, and total cost of ownership. There's no single right answer; the result depends on your climate, energy prices, and incentives.
| Heat pump | Furnace + AC | |
|---|---|---|
| Upfront cost | $0 | $0 |
| Annual operating | $0 | $0 |
| 15-year total cost | $0 | $0 |
Ask local contractors to price a heat pump and a furnace-plus-AC system so you can compare real numbers.
Find an HVAC ProInstalled equipment and labor for each option, sized to your home. The heat pump figure is shown after the incentive you enter.
Annual energy to heat and cool, using your electricity and fuel prices, your climate's heating and cooling load, and each system's efficiency — including electric backup heat for a standard heat pump in the cold.
Upfront plus operating cost over 10, 15, or 20 years, and the year the heat pump's running savings pay back any extra upfront cost.
It depends on your climate, electricity and gas prices, and available incentives. In mild and moderate climates, or when replacing electric resistance heat, propane, or oil, a heat pump usually wins on lifetime cost. Where natural gas is cheap and winters are severe, a gas furnace plus AC can be less expensive to run.
Yes. Cold-climate (hyper-heating) heat pumps hold most of their capacity well below freezing. Standard air-source models lose capacity in deep cold and lean on electric backup heat, which raises operating cost. Check the difference with our Heat Pump Installation Cost Calculator.
A dual-fuel system pairs a heat pump with a gas furnace. The heat pump runs in mild weather when it's efficient, and the furnace takes over when it's very cold or when gas is cheaper. It captures much of the heat-pump savings while keeping a reliable backup.
The federal 25C tax credit currently covers 30% of a qualifying heat pump, up to $2,000 per year, and many states and utilities add rebates worth hundreds to several thousand dollars more. Programs change often, so confirm what's available before you buy.
This calculator produces a planning estimate using typical equipment costs, climate-based energy use, and simplified efficiency assumptions. It is not a contractor quote or an energy audit. Your actual costs depend on your home's insulation and air-sealing, local labor and permit costs, exact equipment chosen, utility rate structure, and weather. Get quotes for both options and verify current incentives before deciding.