ProjectBudgeter
HVAC

Heat Pump vs. Furnace Installation Budgets

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Home Cost Experts
Construction Estimator

Deciding Between Heat Pumps and Gas Furnaces

Heating and cooling account for the largest portion of home utility bills.

Upfront Capital Costs

  • Gas Furnace: $3,000 to $6,000 installed.
  • Electric Heat Pump: $5,500 to $11,000 installed (includes air handler).

Operational Efficiency

Heat pumps do not create heat; they transfer heat from the outside air into the home, yielding up to 300% efficiency. Gas furnaces average 80% to 96% efficiency by burning gas fuel, making heat pumps a highly efficient choice.

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Written by Home Cost Experts

Home Cost Experts is a construction estimator with over 15 years of residential construction planning experience. He oversees our cost verification pipeline.