Heat Pump vs Gas Furnace Cost Calculator
Compare the annual running cost of a heat pump versus a gas furnace based on your home's heating load, equipment specs, and local energy rates. The cheaper option depends on your climate and utility prices — this calculator shows you the numbers.
Last verified: April 28, 2026
Heat Pump
$1,093
per year
- Electricity used
- 6,261 kWh
- Cost per month
- $91
Gas Furnace
$757
per year
- Gas used
- 631 therms
- Cost per month
- $63
Estimate only. Actual costs depend on climate, home insulation, equipment sizing, and utility tariff structures.
How this is calculated
Each system converts an energy source into heat at a different efficiency. The heat pump uses electricity at COP efficiency; the furnace burns gas at AFUE efficiency.
Heat pump annual cost:
kWh needed = (Annual load in BTU ÷ 3,412) ÷ COP
Cost = kWh × Electricity rate
Gas furnace annual cost:
Therms needed = (Annual load in BTU ÷ 100,000) ÷ AFUE
Cost = Therms × Gas rate
Example (60 MMBtu load, COP 3.0, AFUE 95%):
Heat pump: (60,000,000 ÷ 3,412) ÷ 3.0 × $0.1745 = $1,022/yr
Furnace: (60,000,000 ÷ 100,000) ÷ 0.95 × $1.20 = $757/yrAssumptions
- COP is assumed constant across all weather conditions (real COP drops in very cold weather)
- AFUE is the stated annual average efficiency — actual varies by operating conditions
- Gas rate is in US dollars per therm (1 therm = 100,000 BTU)
- For UK/CA/AU, gas rates are in local currency per equivalent unit — adjust as needed
- Does not include equipment cost, installation, or maintenance
- Does not include cooling savings from heat pump reversibility
Break-even scenarios at US average rates
| Climate / Load | Heat pump (COP 3.0) | Gas furnace (95%) | Cheaper by |
|---|---|---|---|
| Mild (20 MMBtu) | $340.95/yr | $252.63/yr | Gas furnace ($88.32) |
| Moderate (60 MMBtu) | $1,022.86/yr | $757.89/yr | Gas furnace ($264.97) |
| Cold (100 MMBtu) | $1,704.77/yr | $1,263.16/yr | Gas furnace ($441.61) |
| Very cold (140 MMBtu) | $2,386.67/yr | $1,768.42/yr | Gas furnace ($618.25) |
At US averages: electricity $0.1745/kWh, gas $1.2/therm (EIA, 2026-04-27). Results change significantly with local rates.
Frequently asked questions
What is COP and why does it matter? ▾
COP stands for Coefficient of Performance. A heat pump with COP 3 delivers 3 units of heat for every 1 unit of electricity consumed — making it 300% efficient by conventional measures. In mild climates, COP typically ranges from 2.5–4.5. In very cold weather it can drop below 2.
What is AFUE for a gas furnace? ▾
AFUE (Annual Fuel Utilisation Efficiency) is the percentage of gas energy converted to useful heat. A 95% AFUE furnace wastes only 5% as exhaust. Modern condensing furnaces are 92–98% AFUE. Older furnaces can be as low as 56–70%.
When does a heat pump cost more to run than a gas furnace? ▾
If electricity is expensive relative to gas, or if your climate is very cold (below -5°C / 23°F regularly), a heat pump may cost more per year. Use this calculator with your actual rates to compare.
What is a typical annual heating load? ▾
A well-insulated 2,000 sq ft US home in a moderate climate uses roughly 40–60 million BTU per year for heating. Cold climates (Minnesota, Canada) may need 80–120 million BTU. Mild climates (Texas, California) may need 10–30 million BTU.
Do heat pumps also provide cooling? ▾
Yes — most heat pumps are reversible. In summer they act as an air conditioner. This calculator covers heating cost only. For cooling cost, use our Air Conditioner Cost Calculator.
Sources
- U.S. Energy Information Administration — Natural Gas Prices — US average residential gas rate ($1.20/therm) (last checked 2026-04-28)
- U.S. EIA — Electric Power Monthly — US average residential electricity rate ($0.1745/kWh) (last checked 2026-04-28)
- U.S. Department of Energy — Heat Pump Basics — COP methodology and typical heat pump efficiency ranges (last checked 2026-04-28)
- ENERGY STAR — Furnace Efficiency (AFUE) — AFUE definition and efficiency benchmarks (last checked 2026-04-28)