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Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed

Heat Pump vs. Gas Furnace

A quick, transparent estimate of how a heat pump's annual operating cost stacks up against a gas furnace's — starting from what you already pay to heat with gas.

Your Home & Rates

Pick your state and we'll fill in its average residential electricity and gas rates from EIA data. These are state averages, not your rate — utilities and rate plans vary widely within a state, so check a recent bill and correct the field before you rely on the result.

What you currently spend heating with gas over a year — check your winter gas bills. This becomes the baseline we work from.

Varies widely by state and utility — check a recent bill for your actual rate.

Also varies by area and utility — check a recent gas bill for your actual rate.

Default of 3.0 is typical of a modern cold-climate heat pump — very cold climates often run lower, around 2.0–2.5.

Default of 95% is a modern high-efficiency furnace — older units are often around 80%.

Estimated Annual Operating Cost

Gas furnace

$1,200

Heat pump

$1,485

Gas furnace is cheaper to run, by roughly $285/year.

Gas consumed today
1,000 therms
Useful heat delivered
27,835 kWh
Heat pump electricity used
9,278 kWh

Operating cost only

This compares annual running cost only — it excludes install cost, which can differ significantly between the two systems. A heat pump also provides cooling in summer, which a furnace doesn't. Available incentives and rebates vary and can change either side of the comparison.

Not financial advice

This is a rough, educational estimate only. Actual costs depend on your climate, home size and insulation, equipment sizing, and local rates. Get quotes from licensed HVAC contractors before making a decision.

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How This Estimate Works

  1. Gas consumed = what you currently pay to heat with gas ÷ your natural gas rate, in therms.
  2. Useful heat delivered = gas consumed × your furnace's AFUE, converted to kWh-equivalent (1 therm ≈ 29.3 kWh).
  3. Heat pump electricity used = useful heat delivered ÷ the heat pump's seasonal COP.
  4. Heat pump annual cost = heat pump electricity used × your electricity rate.

Your gas furnace cost is anchored to what you told us you already pay — we use your gas rate and furnace efficiency to work out how much heat that actually buys, then estimate what a heat pump would cost to deliver that same amount of heat.

This tool is intentionally simple. It doesn't account for climate-specific heat pump performance, home insulation and sizing, electric backup heat strips, time-of-use electricity rates, or duct losses — all of which a real HVAC contractor's load calculation should address. It also compares operating cost only, not installation cost. Treat the result as a back-of-envelope starting point, not a substitute for a local quote.

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