Home Services
Heat Pumps: Cost and Heat Pump vs. Furnace
Published September 24, 2026 · Last updated September 30, 2026
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The short answer
A heat pump costs about $6,088 on average installed, with most homeowners paying $4,237 to $7,942. Unlike a furnace, one heat pump both heats and cools your home.
Heat pumps are very efficient. They move heat instead of making it, and can deliver up to three times more heat energy than the electricity they use. Newer cold-climate models work in much colder weather than older ones.
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What a heat pump costs
Price range
- Average: about $6,088
- Typical range: $4,237 to $7,942
- Full range: $1,454 to $12,000
Permits and any new ductwork cost extra.
Not a quote or an offer. Your price comes from the contractor. Source: Angi, 2026.
What moves the number
- Type. Ducted central heat pumps, ductless mini-splits, and geothermal systems vary a lot in price.
- Size and capacity for your home.
- Efficiency and cold-climate rating.
- Ductwork. Homes without ducts may use mini-splits instead.
- Electrical upgrades, if your panel needs more capacity.
How a heat pump works
In summer, a heat pump works like an air conditioner, pulling heat out of your home. In winter, it runs in reverse, pulling heat from the outdoor air (even cold air) and moving it inside. Because it moves heat rather than burning fuel, it can be very efficient.
Heat pump vs. furnace
| Heat pump | Furnace | |
|---|---|---|
| Heats | Yes | Yes |
| Cools | Yes | No (needs a separate AC) |
| Fuel | Electricity | Usually gas, oil, or electric |
| Average cost | About $6,088 | About $4,814 (heat only) |
| Cold weather | Cold-climate models tested to 5°F | Strong in any cold |
A heat pump may make sense if you need to replace both your heating and AC, you have no gas line, or you have mild to moderate winters.
A furnace may make sense if you have very cold winters and cheap natural gas, or you only need to replace the heating.
Or both: a "dual fuel" system pairs a heat pump with a furnace backup that kicks in on the coldest days.
See furnace replacement and AC replacement.
Heat pumps in cold climates
ENERGY STAR tests cold-climate heat pumps down to 5°F. They keep working below that. For the coldest days, pairing a heat pump with backup heat is the most efficient choice.
Tax credits: federal energy efficiency tax credits for heat pumps ended after 2025, even though some older pages still list them. Ask your power company about local rebates.
What to ask
- "Is this a cold-climate model? How does it perform at our lowest temperatures?"
- "Will you do a load calculation (Manual J)?"
- "Do I need backup heat, or dual fuel?"
- "Does my electrical panel need an upgrade?"
- "What's the warranty on the compressor and your labor?"
The catch: a heat pump sized or installed poorly can struggle in cold snaps and run up electric bills. Ask how the contractor sizes the system for your climate, not just your square footage.
Keep reading
Also replacing your water heater? A heat pump water heater works on the same idea. Paying for it? Compare a HELOC.
More heating and cooling guides: HVAC replacement cost · Furnace replacement · AC replacement · Repair or replace your HVAC · Insulation
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