Use this heat pump vs furnace cost calculator to compare what you’d pay each year to heat your home with a heat pump, your current furnace or a new high-efficiency furnace. Then pick your state to load average electricity and gas prices from the U.S. Energy Information Administration, then enter last year’s fuel use.
Prices checked on November 4, 2026. However, you can overwrite every default price with the rates on your own bills for a more accurate result.
Heat pump vs furnace operating cost calculator
Find this on your utility bills for the heating months, or on your supplier’s annual statement.
How the heat pump vs furnace cost calculator works
First, the calculator works out how much heat your home used last year: your fuel use × the fuel’s energy content × your furnace’s efficiency (AFUE). Then it estimates how much electricity a heat pump would need to deliver the same heat, using its HSPF2 rating.
| Input | Value used |
|---|---|
| Natural gas | 100,000 Btu per therm (EIA); state price converted from $ per Mcf ÷ 10.37 |
| Propane | 91,452 Btu per gallon; default $2.73 per gallon |
| Heating oil | 138,500 Btu per gallon; default $6.233 per gallon |
| Electricity | 3,412 Btu per kWh; state average price |
| Heat pump | kWh = heat delivered ÷ (HSPF2 × 1,000) |
HSPF2 is a seasonal heating rating in Btu of heat per watt-hour of electricity, so dividing the heat by HSPF2 × 1,000 gives kilowatt-hours. For more on the rating, also see SEER2 explained.
Default prices and their limits
- Electricity: first, each state’s average residential price for August 2026, from EIA. Winter rates can differ, so use your own rate if you know it.
- Natural gas: next, each state’s 2025 average residential price from EIA. For Connecticut, Maine, Maryland, North Carolina, Rhode Island and South Carolina, EIA had no 2025 figure, so the calculator uses 2024.
- Propane and oil: U.S. average residential prices for October 26, 2026, before taxes, from EIA. Still, EIA’s regional figures range from $2.199 per gallon of propane in the Midwest to $3.739 on the East Coast.
In addition, the result assumes the heat pump meets its rated HSPF2 over the season. In very cold weather, however, heat pumps lean more on backup heat, which can raise costs; see our guide to heat pump backup heat.
What the results usually show
In our own regional analysis, gas furnaces usually cost less to run than basic heat pumps at current prices, while efficient heat pumps tie or win in some warmer regions. By contrast, heat pumps typically beat propane, heating oil and electric resistance heat. Still, your own prices decide the answer, so run the numbers for your home.
Meanwhile, for the detailed comparisons, read heat pump vs furnace, heat pump vs propane, heat pump vs oil heat and dual fuel vs heat pump.
Heat pump vs furnace cost calculator: FAQ
Where do I find my yearly fuel use?
First, look at your gas or electric bills for the heating months, or ask your propane or oil supplier for an annual statement. Gas bills show usage in therms or in hundreds of cubic feet (Ccf), and EIA says 1 Ccf equals 1.037 therms.
Why does the calculator show a new 95% furnace?
Because a new furnace is usually more efficient than an old one, comparing a heat pump only with an old 80% furnace can overstate the savings. So the calculator also shows a 95% AFUE furnace on the same fuel.
Does this include air conditioning?
No, it compares heating only, unfortunately. However, a heat pump also replaces your central AC, so see our heat pump vs AC comparison for the cooling side.
How accurate is the heat pump vs furnace cost calculator?
Overall, it’s an estimate based on average prices and rated efficiency. Therefore, use your own rates and fuel use, and treat the result as a planning figure rather than a guarantee.
Sources and review
Sources: EIA, Electric Power Monthly, Table 5.6.A (August 2026 data, preliminary); EIA, average residential natural gas price by state (2025 annual); EIA, converting natural gas prices to therms; EIA, British thermal units; EIA, Heating Oil and Propane Update (October 28, 2026). All checked on November 4, 2026.
Written by: HVAC Switch. Last updated: November 4, 2026. Read our editorial policy to learn how we research prices, or contact us if you spot an error.