HVAC comparison
Heat Pump vs Furnace: Cost Comparison
A heat pump both heats and cools with one system, while a furnace pairs with a separate AC. Here is how they compare on install price and running cost in 2026, and which makes sense for your climate.
Heat pump
$6,000 to $18,000 installed
Gas furnace + AC
$7,000 to $15,000 installed
| Feature | Heat pump | Gas furnace + AC |
|---|---|---|
| Installed cost | $6,000 to $18,000 | $7,000 to $15,000 |
| Heats and cools | Yes, one system | Needs furnace + AC |
| Best climate | Mild to moderate | Very cold winters |
| Fuel | Electric | Gas heat, electric cooling |
| Efficiency | Very high in mild weather | High heat in deep cold |
| Rebates available | Often (electrification) | Sometimes |
| Lifespan | 12 to 17 years | 15 to 20 yr furnace |
Heat pump
- One system for heating and cooling
- Very efficient in mild and moderate climates
- Often qualifies for electrification rebates
- No combustion or gas line needed
- Loses efficiency in extreme cold
- Electric rates affect running cost
Gas furnace + AC
- Strong, fast heat in very cold weather
- Often cheaper to run where gas is cheap
- Long furnace lifespan
- Two systems to buy and maintain
- Burns fossil fuel
- Fewer rebates than heat pumps
The verdict
Choose a heat pump in a mild or moderate climate, or if you want to electrify and capture rebates. Choose a gas furnace plus AC in regions with harsh winters and cheap natural gas. Many cold-climate homes now use a dual-fuel setup that combines both.
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View on AmazonFrequently asked questions
Is a heat pump cheaper than a furnace?
To install, a heat pump and a furnace-plus-AC are similar, often $6,000 to $18,000 versus $7,000 to $15,000. To run, heat pumps are usually cheaper in mild climates, while gas furnaces can be cheaper in very cold areas with low gas prices.
Do heat pumps work in cold weather?
Modern cold-climate heat pumps work well into freezing temperatures, but efficiency drops in extreme cold. In harsh winter regions many homes use a dual-fuel system that switches to gas heat when it gets very cold.