Is a heat pump cheaper to run than a gas furnace?

It depends on where you live. At current EIA prices a typical heat pump (9.0 HSPF2) heats a house for less than a 95% gas furnace in 9 of 51 states. It wins where electricity is cheap relative to gas, and a high-efficiency or cold-climate model widens the margin.

At what electricity price does a heat pump beat gas?

For a typical heat pump the break-even electricity price is roughly HSPF2 × 1,000 ÷ (0.95 × 100,000) × the gas price per therm. With gas at $1.50/therm that is about 14.2¢/kWh. The table lists the break-even rate for each state.

Should I keep my gas furnace as a backup?

A dual-fuel setup runs the heat pump most of the year and switches to gas on the coldest days or when gas becomes cheaper per unit of heat. It is a common choice in cold states with low gas prices.

Does a heat pump also replace the air conditioner?

Yes. A heat pump is an air conditioner that can run in reverse, so one outdoor unit does both jobs. That is why the comparison is often heat pump versus furnace plus AC.

Heat pump vs. gas furnace: which costs less to run?

A heat pump moves heat instead of burning fuel, delivering 2 to 4 units of heat per unit of electricity. A modern gas furnace turns 95% of its fuel into heat. Which is cheaper comes down to your electricity and gas prices and your winters. At today's prices the heat pump wins in 9 of 51 states.

Yearly heating cost by state

Typical house (36,000 BTU/h), typical heat pump (9.0 HSPF2) vs. 95% AFUE gas furnace, at each state's prices (electricity 12 months to July 2026, gas 2025).

State	Heat pump	Gas furnace	Difference	Break-even ¢/kWh
Arkansas13.5¢/kWh · $1.86/therm	$727	$952	heat pump saves $225	17.6
Washington14.2¢/kWh · $1.70/therm	$1,048	$1,192	heat pump saves $144	16.1
Georgia15.1¢/kWh · $1.97/therm	$573	$709	heat pump saves $137	18.7
Louisiana13.1¢/kWh · $1.68/therm	$314	$382	heat pump saves $68	15.9
Florida15.4¢/kWh · $2.46/therm	$123	$186	heat pump saves $63	23.3
Texas16.0¢/kWh · $1.87/therm	$448	$496	heat pump saves $48	17.7
Arizona15.5¢/kWh · $1.79/therm	$278	$305	heat pump saves $27	17.0
Mississippi14.9¢/kWh · $1.61/therm	$508	$519	heat pump saves $11	15.3
North Carolina14.9¢/kWh · $1.58/therm	$744	$748	heat pump saves $5	15.0
Hawaii43.7¢/kWh · $5.05/therm	$0	$0	gas saves $-0	47.8
South Carolina15.7¢/kWh · $1.63/therm	$472	$463	gas saves $8	15.4
Alabama16.5¢/kWh · $1.69/therm	$594	$576	gas saves $17	16.0
Missouri13.9¢/kWh · $1.44/therm	$1,028	$1,010	gas saves $18	13.6
Oregon15.6¢/kWh · $1.61/therm	$1,091	$1,068	gas saves $23	15.3
Oklahoma13.6¢/kWh · $1.39/therm	$763	$737	gas saves $26	13.2
Nevada13.6¢/kWh · $1.27/therm	$570	$505	gas saves $64	12.0
Virginia16.6¢/kWh · $1.62/therm	$894	$829	gas saves $65	15.3
Kentucky14.0¢/kWh · $1.37/therm	$951	$883	gas saves $69	13.0
Kansas15.1¢/kWh · $1.43/therm	$1,118	$1,003	gas saves $116	13.5
Tennessee13.7¢/kWh · $1.14/therm	$710	$562	gas saves $149	10.8
West Virginia15.7¢/kWh · $1.33/therm	$1,128	$907	gas saves $220	12.6
Nebraska12.9¢/kWh · $1.10/therm	$1,213	$980	gas saves $233	10.4
Delaware18.0¢/kWh · $1.54/therm	$1,365	$1,109	gas saves $256	14.6
Utah13.3¢/kWh · $0.98/therm	$1,091	$761	gas saves $330	9.3
California33.1¢/kWh · $2.12/therm	$928	$562	gas saves $365	20.1
New Mexico15.2¢/kWh · $0.95/therm	$945	$558	gas saves $387	9.0
Wyoming14.2¢/kWh · $1.13/therm	$1,641	$1,242	gas saves $400	10.7
Iowa14.1¢/kWh · $1.02/therm	$1,436	$986	gas saves $451	9.7
Ohio18.3¢/kWh · $1.34/therm	$1,537	$1,066	gas saves $471	12.7
Maryland22.3¢/kWh · $1.56/therm	$1,428	$946	gas saves $482	14.8
Idaho12.7¢/kWh · $0.74/therm	$1,090	$603	gas saves $487	7.0
Pennsylvania20.8¢/kWh · $1.45/therm	$1,536	$1,017	gas saves $519	13.7
District of Columbia24.2¢/kWh · $1.61/therm	$1,453	$915	gas saves $537	15.3
North Dakota12.5¢/kWh · $0.92/therm	$1,779	$1,238	gas saves $542	8.7
Indiana17.1¢/kWh · $1.11/therm	$1,468	$904	gas saves $564	10.5
Colorado16.6¢/kWh · $1.08/therm	$1,622	$1,003	gas saves $619	10.2
South Dakota14.3¢/kWh · $0.95/therm	$1,684	$1,062	gas saves $622	9.0
Montana13.9¢/kWh · $0.87/therm	$1,616	$956	gas saves $660	8.2
Massachusetts30.4¢/kWh · $2.42/therm	$2,857	$2,155	gas saves $702	22.9
Minnesota16.2¢/kWh · $1.06/therm	$1,948	$1,205	gas saves $743	10.0
New Jersey23.6¢/kWh · $1.37/therm	$1,794	$986	gas saves $808	13.0
Illinois19.0¢/kWh · $1.08/therm	$1,784	$962	gas saves $822	10.2
Vermont23.9¢/kWh · $1.74/therm	$2,676	$1,846	gas saves $829	16.5
Rhode Island29.4¢/kWh · $2.09/therm	$2,586	$1,742	gas saves $844	19.8
New York28.4¢/kWh · $1.70/therm	$2,155	$1,224	gas saves $931	16.1
Wisconsin18.8¢/kWh · $1.04/therm	$2,026	$1,064	gas saves $962	9.9
New Hampshire26.8¢/kWh · $1.79/therm	$2,730	$1,730	gas saves $1,000	17.0
Michigan21.0¢/kWh · $1.05/therm	$2,100	$995	gas saves $1,105	9.9
Connecticut28.2¢/kWh · $1.62/therm	$2,482	$1,351	gas saves $1,131	15.3
Maine29.3¢/kWh · $1.83/therm	$3,338	$1,976	gas saves $1,362	17.3
Alaska27.0¢/kWh · $1.25/therm	$4,376	$1,918	gas saves $2,457	11.8

Heating only; a heat pump also replaces the air conditioner. Break-even: the electricity price at which the typical heat pump costs the same as the furnace.

Compare for your home

Pick your city, your current furnace and a heat pump model.

Heat pump $721/yrYou save $516/yrSee details ↓

1. Where you live

StateCityElectricity ¢ per kWh

Adjust heating and cooling hours

Filled in from your city's climate. Change them if you run the system much more or less than usual.

Cooling hours full-load hours per yearHeating hours full-load hours per year

2. The heat pump pick a model or type its ratings

Find a model (fills in the ratings below)

SEER2 cooling efficiencyHSPF2 heating efficiencyCooling capacity BTU/hHeating capacity BTU/h

3. What it replaces

Current heatingFurnace efficiency (AFUE %)Gas price, $/thermCurrent coolingOld AC rating SEER2 (10 ≈ 15+ years old)

4. Price replace the example with your quote

Installed price, $Rebates and incentives, $ utility, state

Heat pump, per year: $721
Current system, per year: $1,238
You save per year: $516
Payback: 17.4 years
Net after 10 years: -$3,836

Cooling $422Heating $299Electricity used: 4,507 kWhSaved vs. a minimum-efficiency heat pump: $228

Estimates use the unit's rated SEER2 and HSPF2, full-load hours derived from NOAA 1991-2020 degree days, average residential electricity prices from the U.S. EIA (12 months to July 2026) and fuel prices from EIA (2025 for natural gas, week of 2026-10-05 for propane and heating oil). Very cold days that need backup heat are not modelled. Federal minimum for comparison: 14.3 SEER2 / 7.5 HSPF2.

Questions4

Is a heat pump cheaper to run than a gas furnace?: It depends on where you live. At current EIA prices a typical heat pump (9.0 HSPF2) heats a house for less than a 95% gas furnace in 9 of 51 states. It wins where electricity is cheap relative to gas, and a high-efficiency or cold-climate model widens the margin.
At what electricity price does a heat pump beat gas?: For a typical heat pump the break-even electricity price is roughly HSPF2 × 1,000 ÷ (0.95 × 100,000) × the gas price per therm. With gas at $1.50/therm that is about 14.2¢/kWh. The table lists the break-even rate for each state.
Should I keep my gas furnace as a backup?: A dual-fuel setup runs the heat pump most of the year and switches to gas on the coldest days or when gas becomes cheaper per unit of heat. It is a common choice in cold states with low gas prices.
Does a heat pump also replace the air conditioner?: Yes. A heat pump is an air conditioner that can run in reverse, so one outdoor unit does both jobs. That is why the comparison is often heat pump versus furnace plus AC.