Heat pumps vs. furnaces: What you need to know

If it’s time to replace your heating system, you may be debating whether to stick with a familiar furnace or switch to a heat pump. Furnaces are reliable and well-known—but they’re not the most efficient option. Heat pumps, on the other hand, are highly efficient, cost-effective, and can both heat and cool your home.

Still, you might have concerns. Perhaps you’ve heard that heat pumps struggle in extreme cold and worry that yours could fall short during a cold snap (you’ll have nothing to worry about if you install a cold climate heat pump). Beyond performance, there are other big questions: Which system costs more over time? Which lasts longer? Which requires less maintenance?

We’ll break down all of these considerations so you can choose the best heating system for your home.

*Average price after state and local incentives.

When comparing costs, consider both the upfront installation costs and the ongoing operating expenses. The right choice depends on your home's unique characteristics and your long-term budget.

Upfront costs

The upfront costs of both heat pumps and furnaces vary widely based on your home’s specifics. Factors like your existing ductwork, home layout and insulation, local climate, equipment make and model, regional labor rates, and available rebates or incentives all influence total installation cost.

Operating costs

The cost of running heat pumps and furnaces also varies significantly, depending on your climate, utility rates, and system efficiency.

Heat pumps run on electricity—which you can potentially generate with a home solar energy system—while furnaces typically use natural gas or oil. All energy prices fluctuate over time: Gas rates may be low one season and spike the next, and electricity prices can also rise or fall. Home solar, on the other hand, isn’t subject to utility price swings, meaning heat pumps can be powered at little to no cost when paired with solar panels.

While energy rates determine what you pay per unit of energy, the efficiency of the system itself often has a bigger impact on long-term operating costs. Heat pumps transfer heat rather than generate it, making them far more efficient than traditional heating systems. In fact, the Department of Energy reports that heat pumps can reduce electricity use for heating by about 75% compared to electric resistance systems.

HVAC professionals recommend servicing your heat pump and furnace heating systems at least once a year, along with regular at-home upkeep. Both require clean air filters, unobstructed vents, and clear space around the units to operate efficiently.

Gas furnaces have one additional requirement: Maintaining a clear exhaust flue to vent combustion gases outside safely. If the flue becomes blocked or damaged, harmful fumes can enter your home, posing serious health risks.

The average lifespan of a furnace is about 15 to 20 years, while most heat pumps last around 15 years. Generally, a furnace will outlast a heat pump by a few years; however, consistent maintenance can significantly extend the lifespan of both systems.

Ultimately, the right heating system comes down to your home, your climate, and your priorities. If efficiency, long-term savings, and the ability to heat and cool with one system matter most—and especially if you’re considering solar—a heat pump is often the better choice. If you already have natural gas lines or prefer a system with a slightly longer lifespan and lower upfront costs, a furnace may be a better fit for your needs. 

For some homeowners, a dual-fuel setup offers the ideal balance. By weighing efficiency, comfort, cost, and climate, you can choose a system that reliably and affordably keeps your home warm for years to come.