Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Lower total cost option
Heat Pump
Heat pump total cost
$18,300
Furnace total cost
$22,100
Total cost difference
$3,800
Breakeven point
2.5
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How to use this
- 1Enter heat pump install cost ($).
- 2Enter furnace + ac install cost ($).
- 3Enter heat pump rebates/credits ($).
- 4Enter heat pump annual energy cost ($).
- 5Enter furnace + ac annual energy cost ($).
- 6Enter years to project.
- 7Read your lower total cost option on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
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.
Worked example
Using the values the calculator loads with:
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
Results
- Lower total cost option: Heat Pump
- Heat pump total cost: $18,300
- Furnace total cost: $22,100
- Total cost difference: $3,800
- Breakeven point: 2.5
What each field means
Inputs
- Heat pump install cost ($)
- The heat pump install cost used in the calculation, measured in $. Starts at 9500 $ so you have a working example on load.
- Furnace + AC install cost ($)
- The furnace + ac install cost used in the calculation, measured in $. Starts at 6500 $ so you have a working example on load.
- Heat pump rebates/credits ($)
- The heat pump rebates/credits used in the calculation, measured in $. Starts at 2000 $ so you have a working example on load.
- Heat pump annual energy cost ($)
- The heat pump annual energy cost used in the calculation, measured in $. Starts at 900 $ so you have a working example on load.
- Furnace + AC annual energy cost ($)
- The furnace + ac annual energy cost used in the calculation, measured in $. Starts at 1300 $ so you have a working example on load.
- Years to project
- The years to project used in the calculation. Starts at 12 so you have a working example on load. Accepted range: 1–30.
Results
- Lower total cost option
- Returned as a plain value and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Heat pump total cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Furnace total cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total cost difference
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Breakeven point
- Returned as a length of time. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Do heat pumps work in cold climates?
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.
Does a heat pump replace air conditioning too?
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.
How much do rebates typically cover?
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.
Accuracy and 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.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Heat Pump vs Gas Furnace Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/heat-pump-vs-gas-furnace-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/heat-pump-vs-gas-furnace-cost" target="_blank" rel="noopener">Heat Pump vs Gas Furnace Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Heat Pump vs Gas Furnace Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/heat-pump-vs-gas-furnace-cost) (2026).