Heat Pump vs. Furnace
A heat pump heats and cools with electricity and is usually the more efficient choice in mild and moderate climates. A gas furnace produces hotter air and is often cheaper to run where winters are very cold and gas is cheap. Many homes in cold regions use both: a heat pump with a furnace backup, called a dual-fuel system.
Last reviewed September 2026
Heat pump vs. Gas furnace: side by side
| Factor | Heat pump | Gas furnace |
|---|---|---|
| Installed cost | About $4,000–$12,000 | About $3,000–$7,500 |
| What it does | Heats and cools | Heats only (needs a separate AC) |
| Fuel | Electricity | Natural gas or propane |
| Efficiency | Moves heat, so it can deliver 2–4 units of heat per unit of electricity | Burns fuel; high-efficiency models reach about 95–98% AFUE |
| Best climate | Mild to cold with a cold-climate model | Very cold winters, cheap gas |
| Air temperature at vents | Warm, about 90–95°F | Hot, about 120–140°F |
| Lifespan | About 10–15 years | About 15–20 years |
| Carbon monoxide risk | None | Needs CO alarms and venting |
Which one should you choose?
Choose heat pump if
- You need both heating and cooling and your AC is old
- Winters are mild to moderate, or you choose a cold-climate model
- You want to avoid burning fuel in the home
- Electricity is reasonably priced or you have solar
Choose gas furnace if
- Winters are long and very cold
- Natural gas is cheap in your area
- You already have good ductwork and a working AC
- You prefer very warm air from the vents
Cost comparison
| Option | Typical cost |
|---|---|
| Heat pump, installed | $4,000–$12,000 |
| Gas furnace, installed | $3,000–$7,500 |
| Dual-fuel system (heat pump + furnace) | $7,000–$15,000 |
| Ductless mini split, single zone | $3,000–$6,000 |
Ranges are typical US prices compiled by FixHomeCost. Prices vary by region, home and contractor, so compare 2–3 local quotes.
Common questions
Is a heat pump cheaper to run than a gas furnace?
It depends on local electricity and gas prices and your climate. In mild and moderate climates, a heat pump is often cheaper to run; in very cold areas with cheap gas, a furnace can be cheaper.
Do heat pumps work in cold weather?
Modern cold-climate heat pumps keep heating well below freezing, though efficiency drops as it gets colder. Many have backup heat for the coldest days.
What is a dual-fuel system?
A heat pump paired with a gas furnace. The heat pump handles mild weather and the furnace takes over when it gets very cold.
Should I replace my furnace with a heat pump?
Consider it if your AC also needs replacing, your climate is not extremely cold, or you want to reduce fuel use. Get a load calculation from a contractor first.