You’ll have several factors to consider when deciding on the right HVAC system for your home, including installation and unit costs, system efficiency ratings, and expected maintenance requirements. Your existing ductwork and your climate zone will also have a guiding influence on your choice.
Deciding between a heat pump and a furnace for your home? USA TODAY asked the experts, and here’s what you should know before you decide.
Heat pump vs furnace at a glance
| Factor | Heat pump | Furnace |
| Average installation cost | $12,000 to $15,000 | $6,500 to $9,000 |
| Efficiency | 7.5 to 9+ HSPF2 | 80% to 98.5 AFUE |
| Noise levels | 40 to 55 decibels | 45 to 65 decibels |
| Lifespan | 10 to 15 years | 15 to 20 years or more |
| Yearly maintenance cost | $150 to $300 | $150 to $300 |
Installation cost figures are drawn from ARS cost data between January 2025 and January 2026. These ranges reflect varied customer circumstances, including home size, labor requirements, climate zone and more.
Note that heat pumps and furnaces have different scales for measuring efficiency. This is due to modern heat pumps’ exclusive operation on electric power and the continued use of gas and oil for furnaces.
Installation costs
The overall upfront cost for a new HVAC system takes several factors into account, including:
- Home size
- Existing ductwork
- Insulation quality
- Climate zone
- Labor rates in your location
The best way to estimate your HVAC installation is to get real quotes and talk to the experts, which is why we reached out to Jerame Pankhurst, an Oncourse Home Solutions HVAC expert with more than 30 years of commercial and residential HVAC experience.
“Generally, a high-efficiency gas furnace (96% AFUE) can run around $7,500-$10,000+ installed,” Pankhurst says. “Keep in mind that a furnace only provides heat, so if the home also needs a new central AC system, that could add another $5,000-$7,500.”
Ducted air-source heat pumps come in at a higher price, as much as double, according to Pankhurst. “A ducted air-source heat pump for a whole-home system can generally run around $12,000-$20,000+,” he says. “The difference is that a heat pump provides both heating and cooling, so it can replace both the furnace and AC.”
These price ranges are a good benchmark for a typical home, while the average rates we received from ARS cover a broad range of consumers. If you have a larger home or live in a colder U.S. region like New England, the Great Lakes states, the Upper Midwest or Alaska, you might require a more powerful system. This can increase the overall price of installation.
Efficiency ratings
Simply put, higher efficiency ratings in your HVAC system components will save you money. These rating scales effectively measure the percentage of fuel that goes into heating your home.
- AFUE (Annual Fuel Utilization Efficiency): Measures the percentage of a furnace’s fuel energy that is converted into usable heat over a typical year.
- HSPF2 (Heating Seasonal Performance Factor): Measures a heat pump’s overall efficiency. This number divides the unit’s output in BTUs (British Thermal Units) by watt-hours of electricity used.
Heat pumps and furnaces have different efficiency rating scales, which can make their comparison less straightforward. However, Energy Star’s guidelines do help to clarify things for homeowners.
If you’re in the market for a new furnace, your AFUE mandated range depends on your fuel source.
- Oil furnaces: Must have an AFUE rating of 87% or higher for Energy Star certification
- Gas furnaces: Are required to have an AFUE of 95% or above in Southern states, and 97% or higher in Northern states
Like their gas and oil-fueled counterparts, electric heat pumps also have different requirements for installation in colder climates. Energy Star outlines these guidelines as follows:
| Factor | System type | Energy Star’s required efficiency rating |
| Standard | Single-package | ≥ 7.2 HSPF2 |
| Split system | ≥ 7.8 HSPF2 | |
| Cold weather (Tested at 5° Fahrenheit) | Single-package | ≥ 8.1 HSPF2 |
| Ducted split system | ≥ 8.1 HSPF2 | |
| Non-ducted split system | ≥ 8.5 HSPF2 |
As a bonus, many modern heat pumps offer dual functionality as a cooling unit for your home and come in non-ducted varieties. These are often referred to as ductless mini-splits and offer a more cost-effective alternative if your home is older or has no existing ductwork.
Climate zone effectiveness
Another key factor to consider when deciding between a heat pump and a furnace for your next HVAC system is the climate you live in. You should keep in mind both efficiency ratings and how your system generates heat.
Furnaces
If you frequently experience cold winters and subzero temperatures, then a furnace might offer faster heat and more consistent temperature control inside your home.
Furnaces generate heat via combustion of fuel. Air is then pulled from your home interior and passed over a heated metal component, called a heat exchanger, before being pushed out through your vents.
Heat pumps
Electric heat pumps pull thermal energy from outside of your home. Air is the most common heat source, but systems utilizing a closed water loop or geothermal energy are available.
These systems can operate well below freezing and can be more energy-efficient than furnaces. However, efficiency may be impacted at extremely low temperatures.
This, along with heat pumps’ dual functionality as air conditioners make them an increasingly more common choice. In fact, data from the U.S. Energy Information Administration shows that electric HVAC options are growing in popularity. Between 2010 and 2024, electricity steadily increased as the primary source of residential heating, from 35% to 42% of all U.S. households.
Hybrid systems
Some homeowners have opted for a dual solution to their heating and cooling needs, which could eliminate your need to choose between a furnace and a heat pump. Modern hybrid HVAC systems utilize smart thermostats to switch between electric and fossil fuel heating depending on exterior temperatures.
This option comes at a much higher upfront cost but reduces the wear and tear on both systems. So, your units could last far longer with proper upkeep.
Noise levels
Both modern heat pumps and furnaces put out similar amounts of noise. Both are quiet, but furnaces are slightly louder due to their indoor operating requirements. 40 to 60 decibels (dB) is typical with each system type.
Heat pumps generate much of this noise (40 to 60 dB) with their exterior motors, which can keep indoor noise quieter and under 30 dB. Furnaces, by comparison, produce more noise when switching on. These units are typically stored in basements, which limits noise exposure in the main living areas of your home.
Sound does matter. According to the Hearing Health Foundation, prolonged exposure to noise above 70 decibels can be considered harmful. Its listed decibel ranges and compared real-world sounds can help contextualize the above measurements for you.
- 20 dB: Ticking watch
- 30 dB: A whisper
- 30-50 dB: Ambient room noise
- 60 dB: Background music
- 70 dB: Office background noise
Lifespan and maintenance
In many cases, furnaces will outlast heat pumps by a few years. You can expect a furnace to last an average of 15 to 20 years with proper maintenance and care. Heat pumps last around 10 to 15 years with similar attention to upkeep. The difference in lifespan is mainly because heat pumps operate year-round, not seasonally like a furnace.
We followed up with Pankhurst to get a better idea of typical pricing for regular maintenance:
“Annual maintenance costs are pretty similar,” says Pankhurst. “A standard professional tune-up for either a heat pump or furnace typically runs around $150–$300 per year.”
When budgeting for repairs or servicing appointments for either system, remember that heat pumps often work year-round to both cool and heat your home. This constant use can lead to more wear and tear and may require more frequent attention.
Our advice
If your primary goal is overall efficiency, and you don’t live in an area with extreme winters, a heat pump might be your best option. However, if you prefer direct and speedy heat, and you have no need for an additional cooling system, a modern furnace can still offer high AFUE ratings.
Regardless of your decision, we recommend that you shop around with different installers in your area before settling on a contractor. Doing so can help you land a better price and fully survey your options for HVAC brands and system types.
Frequently asked questions
Do heat pumps not work well in extreme cold?
Heat pumps can still operate at sub-zero temperatures. Decreases in efficiency can occur but are much more common in external air systems. Installing a heat pump that is specifically meant for cold conditions can help ensure operation as low as -20° Fahrenheit.
How often should I have my HVAC system serviced by a technician?
We recommend yearly tune-ups if you have a standard furnace that is used in the winter months. A heat pump that operates year-round may require biannual inspections and tune-ups in the spring and fall.
What are some signs that my furnace or heat pump isn’t working at peak capacity?
Strange or louder sounds from your heating unit are a clear indicator that you should call a licensed HVAC professional. Beyond these audible indicators, inconsistent temperatures in different areas of your home and rising utility bills are silent signs that you might require repairs.
Can I install a heat pump to work with my existing ducts?
Yes. Both ducted and ductless heat pumps are available. Each option has its own pros and cons, as ducted heat pumps offer less control over room-to-room temperature than ductless alternatives.