Energy Calculators

Heat pump vs gas furnace cost

Compare what a heat pump and a gas furnace would cost to heat your home for a year in your state.

For a U.S. home of average heated size (1,614 sq ft, RECS 2020), heating with a COP 3 heat pump costs about $649.33 a year at 18.16¢/kWh (August 2026), versus $570.19 for a 95% gas furnace at $1.48/therm (2025) (EIA).

Pre-fills electricity and gas prices (EIA) and typical heating use (EIA RECS 2020).

sq ft
million Btu

Estimated from average gas heating use in the U.S. (RECS 2020), scaled to your floor area and adjusted to typical weather (NOAA degree days).

%
¢/kWh
$/therm

U.S. residential average, 2025 (EIA).

Heat pump per year
$649.333,576 kWh
Gas furnace per year
$570.19385 therms
Heat pump costs more
$79.14per year
Break-even electricity rate
15.95¢/kWhheat pump is cheaper below this
  • Heat pump$649
  • Gas furnace$570

Formula: heat pump kWh = heat needed (Btu) ÷ (COP × 3,412); furnace therms = heat needed ÷ (AFUE × 100,000); cost = energy × price. Heating only; excludes equipment, installation and maintenance costs.

Inputs used: heat needed: 36.6 million Btu; COP: 3; AFUE: 95%; electricity: 18.16¢/kWh; gas: $1.48/therm.

These are estimates, not financial advice.

Source: U.S. Energy Information Administration (Aug 2026). About our data

Natural gas: U.S. Energy Information Administration, residential annual average, converted to $/therm with EIA heat content. Heating use: U.S. Energy Information Administration, Residential Energy Consumption Survey (RECS) 2020.

Worked examples in three states

Average-size home for each state, COP 3 heat pump vs 95% furnace.

StateElectricityGasHeat pump/yrFurnace/yrBreak-even
Maine32.11¢/kWh$1.82/therm$1,261$770.1519.61¢/kWh
West Virginia16.31¢/kWh$1.27/therm$779.17$653.7213.68¢/kWh
Nevada12.72¢/kWh$1.26/therm$254.75$271.8913.58¢/kWh

How we calculate

heat pump kWh = heat needed (Btu) ÷ (COP × 3,412); furnace therms = heat needed ÷ (AFUE × 100,000); costs use your state’s electricity and gas prices.

Electricity: EIA average residential price, August 2026. Gas: EIA residential average for the latest complete year (annual rather than monthly, because monthly gas prices swing strongly with season). Heating need: EIA RECS 2020 state averages, adjusted to typical weather with NOAA heating degree days. See the methodology.

Frequently asked questions

Is a heat pump cheaper to run than a gas furnace?

It depends on the ratio of electricity to gas prices and on the heat pump’s efficiency. The calculator shows a break-even electricity price: below it, the heat pump costs less to run for the same heat.

What COP should I use?

Seasonal COP is the average heat delivered per unit of electricity over the winter. We default to 3. It is lower in very cold climates and for older units, and higher for cold-climate models in milder regions. Manufacturer HSPF2 ratings divided by 3.412 give a rough seasonal COP.

How is the heating need estimated?

From EIA’s 2020 Residential Energy Consumption Survey: average natural gas used for space heating by gas-heated homes in your state, multiplied by 80% furnace efficiency to get heat delivered, scaled by your floor area, and adjusted from 2020 weather to the 10-year average using NOAA heating degree days (no adjustment for Alaska and Hawaii, which have no NOAA statewide series).

Does this include installation costs?

No. It compares annual energy cost only. Equipment, installation, maintenance, cooling benefits of a heat pump and any rebates are not included.

Data last updated: