{
  "slug": "heat-pump-vs-gas-furnace-cost",
  "title": "Heat Pump vs Gas Furnace Cost Calculator",
  "heading": "Heat Pump vs Furnace Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/heat-pump-vs-gas-furnace-cost",
  "summary": "Compare installation cost, annual energy bills, and breakeven year for a heat pump versus a gas furnace.",
  "description": "Heat pumps cost more to install than a gas furnace in most markets but run on cheaper-per-unit electricity with very high efficiency, while furnaces cost less upfront but burn gas at a lower effective efficiency and still need separate AC. This calculator compares upfront installed cost, annual heating cost from your local energy rates, and any available rebates to find the year the heat pump's lower running cost overtakes its higher install price.",
  "formula": "Total Cost(year) = Install Cost − Rebates + Annual Energy Cost × Years. Breakeven = year where Heat Pump Total = Furnace Total.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=heat-pump-vs-gas-furnace-cost",
  "inputs": [
    {
      "id": "heatPumpInstall",
      "label": "Heat pump install cost",
      "kind": "number",
      "hint": null,
      "default": 9500,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "furnaceInstall",
      "label": "Furnace + AC install cost",
      "kind": "number",
      "hint": null,
      "default": 6500,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rebate",
      "label": "Heat pump rebates/credits",
      "kind": "number",
      "hint": null,
      "default": 2000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "heatPumpAnnual",
      "label": "Heat pump annual energy cost",
      "kind": "number",
      "hint": null,
      "default": 900,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "furnaceAnnual",
      "label": "Furnace + AC annual energy cost",
      "kind": "number",
      "hint": null,
      "default": 1300,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "years",
      "label": "Years to project",
      "kind": "number",
      "hint": null,
      "default": 12,
      "unit": null,
      "min": 1,
      "max": 30
    }
  ],
  "outputs": [
    {
      "id": "winner",
      "label": "Lower total cost option",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "hpTotal",
      "label": "Heat pump total cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "furnaceTotal",
      "label": "Furnace total cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Total cost difference",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakevenYears",
      "label": "Breakeven point",
      "format": "duration",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Heat pump install cost: 9500 $",
      "Furnace + AC install cost: 6500 $",
      "Heat pump rebates/credits: 2000 $",
      "Heat pump annual energy cost: 900 $",
      "Furnace + AC annual energy cost: 1300 $",
      "Years to project: 12"
    ],
    "outputs": [
      "Lower total cost option: Heat Pump",
      "Heat pump total cost: $18,300",
      "Furnace total cost: $22,100",
      "Total cost difference: $3,800",
      "Breakeven point: 2.5"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter heat pump install cost ($).",
      "Enter furnace + ac install cost ($).",
      "Enter heat pump rebates/credits ($).",
      "Enter heat pump annual energy cost ($).",
      "Enter furnace + ac annual energy cost ($).",
      "Enter years to project.",
      "Read your lower total cost option on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "heatPumpInstall": 5750,
        "furnaceInstall": 4000,
        "rebate": 1200,
        "heatPumpAnnual": 550,
        "furnaceAnnual": 800,
        "years": 7
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "heatPumpInstall": 9500,
        "furnaceInstall": 6500,
        "rebate": 2000,
        "heatPumpAnnual": 900,
        "furnaceAnnual": 1300,
        "years": 12
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "heatPumpInstall": 15250,
        "furnaceInstall": 10500,
        "rebate": 3200,
        "heatPumpAnnual": 1450,
        "furnaceAnnual": 2100,
        "years": 19
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Do heat pumps work in cold climates?",
      "a": "Modern cold-climate heat pumps maintain efficiency well below freezing, though some homes in very cold regions pair one with a backup furnace for the coldest days, which changes the energy math slightly."
    },
    {
      "q": "Does a heat pump replace air conditioning too?",
      "a": "Yes — a heat pump provides both heating and cooling from one system, which is why its install cost is compared against a furnace plus a separate AC unit here."
    },
    {
      "q": "How much do rebates typically cover?",
      "a": "Federal and utility rebates can total $2,000-$10,000 depending on region and income, often closing much of the upfront cost gap versus a furnace."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/gas-vs-electric-water-heater-cost",
    "https://www.revenuelab.fyi/toolbox/propane-vs-natural-gas-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Heat Pump vs Gas Furnace Cost Calculator (https://www.revenuelab.fyi/toolbox/heat-pump-vs-gas-furnace-cost)"
}