Heat Pump vs Gas Furnace Cost
Compare heat pump and gas furnace running costs for your home size and climate. See which wins in your state.
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A heat pump costs roughly $0.013 per 1,000 BTU at COP 3.0 and $0.13/kWh. A gas furnace at 80% AFUE costs $0.015 per 1,000 BTU at $1.20/therm. Heat pumps are now competitive with gas in most US climates — and cheaper where electricity rates are low.
Heat Pump vs Gas Furnace Cost Calculator
Heat Pump vs Gas Furnace — Monthly Cost by Home Size (US 2026)
| Home Size | Heat Pump (COP 3.0) | Gas Furnace (80% AFUE) | Winner |
|---|---|---|---|
| Small (800 sq ft) | ~$33/mo | ~$48/mo | Heat Pump |
| Medium (1500 sq ft) | ~$65/mo | ~$96/mo | Heat Pump |
| Large (2500 sq ft) | ~$108/mo | ~$160/mo | Heat Pump |
Heat pump COP 3.0, gas 80% AFUE. Elec $0.13/kWh, gas $1.20/therm. 8 hrs/day, cold climate.
When Does a Heat Pump Beat a Gas Furnace?
At COP 3.0 and $0.13/kWh, a heat pump delivers heat at roughly $0.013 per 1,000 BTU. A gas furnace at 80% AFUE and $1.20/therm costs $0.015 per 1,000 BTU. The heat pump wins in most moderate climates and is competitive even in colder regions with modern cold-climate models.
The gap widens where electricity is cheap. In states like Washington ($0.10/kWh) and Idaho ($0.10/kWh), heat pumps cost roughly $0.010 per 1,000 BTU — making them clearly cheaper than gas. In high-gas-price states like California and Massachusetts, the advantage is even more pronounced.
The 2026 Federal tax credit covers 30% of heat pump installation costs up to $2,000, further tipping the scales. For a full breakdown by fuel type, see our gas vs electric heating comparison or try the heat pump cost calculator for your exact numbers.