Quick Comparison
| Factor | Gas Furnace | Heat Pump |
|---|---|---|
| Install Cost | $3,000-$7,000 | $5,000-$12,000 |
| Operating Cost | $500-$1,500/year | $400-$1,000/year |
| Efficiency | 80-98% AFUE | 200-400% COP |
| Lifespan | 15-20 years | 12-15 years |
| Heats & Cools | Heat only | Both |
| Best Climate | Cold (below 30°F) | Mild to moderate |
How They Work
Gas Furnace
- Burns natural gas to create heat
- Blows heated air through ductwork
- 80-98% of fuel becomes heat
- Only provides heating (needs separate AC)
Heat Pump
- Moves heat from outside to inside (even in cold weather)
- Works like AC in reverse
- 2-4x more efficient than furnaces (300%+ effective efficiency)
- Provides both heating AND cooling
- Struggles below 30-40°F (requires backup heat)
Why Heat Pumps Are More Efficient
Furnaces create heat by burning fuel. Heat pumps move existing heat from outside air. Moving heat takes less energy than creating it—that's why heat pumps can be 300-400% efficient (3-4 units of heat per unit of electricity).Cost Comparison
Installation Costs
Gas Furnace + Central AC:- Furnace: $3,000-$7,000
- Central AC: $3,000-$7,000
- Total: $6,000-$14,000
- Heat pump: $5,000-$12,000
- May need backup heat: $500-$2,000
- Total: $5,500-$14,000
Annual Operating Costs (2,000 sq ft home)
Moderate Climate (Atlanta, Dallas):- Gas furnace + AC: $1,800-$2,500/year
- Heat pump: $1,200-$1,800/year
- Savings: $600-$700/year
- Gas furnace + AC: $2,000-$3,000/year
- Heat pump with backup: $1,800-$2,800/year
- Savings: $200-$400/year
15-Year Total Cost of Ownership
Moderate Climate:- Furnace + AC: $30,000-$45,000
- Heat pump: $22,000-$35,000
- Heat pump saves: $8,000-$10,000
- Furnace + AC: $36,000-$52,000
- Heat pump: $32,000-$48,000
- Heat pump saves: $4,000-$6,000
Climate Guide
Heat Pump Recommended
Climate Zones 2-4 (mostly mild winters)- Southeast (FL, GA, SC, NC, TN)
- Southwest (AZ, NM, TX, NV)
- Pacific Coast (CA, OR, WA)
- South Atlantic
Furnace or Dual-Fuel Recommended
Climate Zones 5-7 (cold winters)- Northeast (NY, MA, PA, etc.)
- Upper Midwest (MN, WI, MI)
- Mountain States (CO, MT, WY)
- Northern Plains
Dual-Fuel: Best of Both Worlds
A dual-fuel system combines:- Heat pump for moderate temps (above 35°F)
- Gas furnace for coldest days (below 35°F)
- Automatically switches for optimal efficiency
- Higher install cost but lowest operating cost
Which Should You Choose?
Choose a Heat Pump If:
- You live in a moderate climate
- You want both heating and cooling in one system
- You want lowest operating costs
- You prefer electric over gas
- You're eligible for heat pump tax credits
- Environmental impact matters to you
Choose a Furnace If:
- You live where temps regularly drop below 30°F
- You have access to cheap natural gas
- Your home already has a furnace and ductwork
- You only need heating (already have good AC)
Consider Dual-Fuel If:
- You're in a climate zone that gets occasional very cold spells
- You want both efficiency and reliability
- You can afford higher initial investment