Heat Pump vs. Furnace: Which Makes Sense for Your Home or Rental?
The short answer
A heat pump heats and cools with one system and is usually cheaper to run in mild and moderate climates. A gas furnace costs less up front and handles extreme cold more cheaply. If you need to replace both the AC and the furnace, a heat pump is often the better value.
Compare the upfront cost
A furnace replacement typically runs $2,800 to $7,500, a central AC install $3,900 to $8,000, and a heat pump $4,200 to $7,600. If both your furnace and AC are near the end of their life, one heat pump can cost less than replacing the two separately.
Consider your climate
Modern cold-climate heat pumps work well below freezing, but in places with long stretches of extreme cold, many owners keep a furnace as backup (a 'dual-fuel' setup). In milder climates a heat pump alone is usually enough.
For landlords
One system means one maintenance contract and fewer no-heat and no-AC calls. Check for local utility rebates, which can change the math considerably.
Frequently asked questions
Is a heat pump cheaper to run than a gas furnace?
Often in mild and moderate climates. In very cold regions, gas can be cheaper during the coldest months, which is why dual-fuel setups exist.
Can a heat pump replace both a furnace and an AC?
Yes. A heat pump provides both heating and cooling from one system.
