Compare the total cost of heating your home with a heat pump versus a gas furnace. Factor in installation costs, energy prices, incentives, and efficiency to find your break-even point.
Including installation
Including installation
IRA rebates, state credits, utility rebates
Annual Savings (Year 1)
$358
Break-Even Point
Year 13
10-Year Savings
$-1,096
A COP of 2.8 means for every 1 unit of electricity used, the heat pump delivers 2.8 units of heat energy -- 280% more efficient than a standard electric heater.
Performance breakdown for Moderate Climate:
Heating Season
Nov - Mar
COP 2.8
$215/yr heating savings
Cooling Season
May - Sep
EER 13
Replaces separate AC unit
Shoulder Season
Spring & Fall
Minimal use
Low energy demand periods
This calculator estimates heating costs for both systems based on your home size, climate, and local energy prices. Heat pumps use electricity and have a coefficient of performance (COP) of 2-4, meaning they produce 2-4 units of heat per unit of electricity. Furnaces burn fuel at 90-95% efficiency. The calculator also factors in that heat pumps provide AC, saving you the cost of running a separate cooling system. Rising fuel prices tend to favor heat pumps over time since electricity prices historically increase more slowly.
Heat pumps are 2-5x more efficient than gas furnaces because they move heat rather than generate it. In moderate climates, a heat pump can cut heating costs by 30-50% compared to a gas furnace. Savings depend on local electricity and gas prices, climate, and home insulation. Heat pumps also replace your AC, providing additional savings on cooling.
Modern cold-climate heat pumps work effectively down to -15°F or lower. Models from Mitsubishi, Daikin, and others maintain high efficiency even in sub-zero temperatures. However, efficiency decreases as temperatures drop, so homes in very cold climates may need a backup heat source for extreme cold snaps. The IRA provides additional incentives for cold-climate heat pump models.
The Inflation Reduction Act (IRA) offers up to $8,000 in rebates for heat pump installation through the HOMES program, plus a 30% tax credit (up to $2,000) through the 25C credit. Many states and utilities offer additional rebates ranging from $500-$5,000. Income-qualified households may receive even higher rebates covering up to 100% of costs.
Heat pumps typically last 15-20 years with proper maintenance, comparable to a gas furnace (15-20 years) plus AC unit (15-20 years). Since a heat pump replaces both heating and cooling systems, you're maintaining one system instead of two. Annual maintenance includes filter changes, coil cleaning, and refrigerant checks.
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