Heat Pump vs Furnace Running Cost Calculator

Compare Your Heating Costs

Enter what you heat with now, how much of it you use in a year and what you pay. The calculator works out how much heat your home actually uses, then what a heat pump would cost to deliver the same heat at your electricity price.

How It Works

1. Heat your home uses = fuel used × energy per unit × system efficiency. Energy content is from the Energy Information Administration: 1 therm = 100,000 BTU, 1 cubic foot of gas = 1,036 BTU, 1 gallon of propane = 91,452 BTU, 1 gallon of heating oil = 138,500 BTU, 1 kWh = 3,412 BTU.
2. Heat pump electricity = that heat ÷ 3,412 ÷ the heat pump’s COP.
3. Running cost = electricity × your price per kWh, compared with what you pay now.

COP (coefficient of performance) is units of heat delivered per unit of electricity. The Department of Energy says a properly installed air-source heat pump can deliver up to three times more heat energy than the electricity it uses. Over a whole winter the average is lower, because efficiency falls as it gets colder. The default of 2.5 is a middle-of-the-road example, not a measured figure for your home.

HSPF is a heat pump’s seasonal heating rating in BTU per watt-hour, so dividing it by 3.412 gives a seasonal COP. The DOE’s advice: in colder climates, focus on getting the highest HSPF feasible.

Default Prices

• Gas: $15.34 per thousand cubic feet, the EIA’s 2025 U.S. average residential price. That is about $1.48 per therm or $1.53 per ccf.
• Electricity: 18.31 cents per kWh, the EIA’s U.S. residential average for July 2026.
• Propane and oil: no default, because prices vary widely by region and delivery. Use your last delivery invoice.
• Your own bill always beats an average: use the total you pay per unit, including delivery charges.

What the Calculator Leaves Out

• Equipment and installation. A lower running cost only pays off if it covers the price difference. See our heat pump vs furnace guide for installed costs.
• Cold-climate performance. If you live somewhere cold, look for a cold-climate model. To carry the ENERGY STAR Cold Climate label, a heat pump must keep at least 70% of its heating capacity at 5°F.
• Backup heat. Many heat pumps switch on electric resistance strips in very cold weather, which costs far more to run. Our aux vs emergency heat guide explains how to keep that in check.
• Cooling. A heat pump also replaces your air conditioner; a newer, more efficient one may lower cooling costs too.
• Fixed charges. If you drop gas entirely you also stop paying the gas account’s fixed monthly fee.

Frequently Asked Questions

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

It depends on your electricity and gas prices and the heat pump's seasonal efficiency. Enter your own numbers above; the break-even line shows the electricity price at which the two cost the same.

What COP should I use for a heat pump?

The Department of Energy says air-source heat pumps can deliver up to three times the heat energy of the electricity they use. Seasonal averages are lower, especially in cold climates. You can also divide the HSPF rating by 3.412.

How do I find how much gas I use for heating?

Add up your winter bills' therms or ccf, then subtract a typical summer month for each winter month to remove water heating and cooking.

Does the calculator include installation costs?

No. It compares running costs only. Compare the yearly difference against the extra cost of the heat pump to estimate payback.

Related Guides

• Heat pump vs furnace (2026) — the full comparison
• Emergency heat vs auxiliary heat — keeping backup heat in check
• Best thermostat for a heat pump — aux heat lockout
• LED savings calculator — our other free tool

Sources

• EIA: British thermal units (Btu) conversions
• EIA: U.S. natural gas prices
• EIA: Electric Power Monthly, end-use prices
• U.S. Department of Energy: Air-source heat pumps
• ENERGY STAR: Air-source heat pump key product criteria