Heat Pumps vs. Furnaces: Which is Best for Your Home?

Staying warm in winter — and cool in the summer — is crucial to enjoying your home. 

Homeowners have a few options when it comes to keeping their homes heated in the cold winter months. Furnaces have long been the traditional appliance for generating heat, coupled with an outdoor air conditioning unit for those dog days of summer. However, when it comes to home heating and cooling systems, a heat pump may be your best option since it can both heat and cool your home. 

Gas-powered furnaces are still more commonplace than heat pumps, especially in parts of the country that routinely experience frigid winter weather. Heat pumps are becoming more popular, though, because they can be cheaper to install and operate more energy-efficiently than furnaces or air conditioners. Deciding which appliance is best for your home depends on a number of factors, including the age of your furnace, where you live, and the climate you experience.

Modernize created this guide to provide side-by-side comparisons of heat pumps vs furnaces to help homeowners better understand which system may work best for their homes and budgets.

What Is a Heat Pump?

Heat pumps move heat from one place to another. In the winter, a heat pump pulls warm air from outside and distributes it throughout the home. This process is reversed in the summer — the heat pump pulls hot air from inside your home and vents it outside.

There are three different types of heat pumps. Each one is best for specific types of homes, depending on when your house was built and the climate in which you reside.

• Ductless heat pumps. These models are best for older homes and for homes that don’t have existing ductwork.
• Ducted heated pumps. This type of heat pump taps into your home’s existing ducting.
• Geothermal heat pumps use heat from the ground or hot water sources near your home. These heat pumps can be a good option for homes in climates that are prone to extremely cold weather.

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What Is a Furnace?

In most homes, the furnace is the heart of the central heating system. In fact, the word “furnace” stems from an old French word for “oven” (fornais).

A gas or propane furnace works by burning the fuel source to create heat, which is passed through a heat exchanger and then is forced throughout the home by the unit’s blower fan. Electric furnaces work the same way but use electricity to generate heat.

Now that you know the basics, let’s take a closer look at side by side comparisons for heat pumps vs furnaces in several different categories.

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Side-by-Side Comparisons: Heat Pumps vs. Furnaces

Below we’ve laid out head-to-head comparisons of heat pumps vs furnaces in cost, efficiency, maintenance and longevity.

Cost

Costs can vary greatly by difficulty of installation, product purchased, contractor labor rates, and other factors. Here are some general guidelines on cost, though.

• Heat Pump. A new heat pump can cost between $2,500 and $10,000. Costs will escalate significantly for geothermal units or for installation jobs that require new ductwork to distribute heat throughout the home.
• Furnace. A new furnace can set you back between $2,800 and $6,800.

Maintenance

• Heat Pump. According to the U.S. Department of Energy, not maintaining your heat pump could reduce its efficiency by 10 to 25%. Internal filters should be routinely changed as necessary, and all dust and accumulated detritus should be removed from the unit’s coils and fans. A licensed HVAC technician can also check and maintain your heat pump by ensuring refrigerant and airflow are at the proper specifications, and that the thermostat and blower are working correctly.
• Furnace. Furnaces require annual maintenance to ensure they are working efficiently, which helps prolong the life of the unit. Maintenance inspection of all operable parts, which includes the thermostat, ignition, blower and other parts.

Energy Efficiency

Heat pumps and furnaces denote energy efficiency by their annual fuel utilization efficiency (AFUE). This measurement is calculated by comparing the unit’s output (listed in British Thermal Units, or BTUs) by the amount of fuel consumed to generate that heat.

• Heat Pump. Here’s why heat pumps are becoming a popular option for homeowners: in prime operating conditions, heat pumps will transfer as much as 300% more energy than they use to generate heat. 
• Furnace. An older furnace may have an AFUE of 70% or lower. Newer high-efficiency models typically have AFUE ratings above 90%.

Longevity

Since furnaces only operate during cold months, they may have a longer life span when routinely serviced. But both systems are comparable.

• Heat Pump. Heat pumps can serve dual functions of heating and cooling, so they are used year-round. With proper maintenance, expect your new heat pump to last around 15 years.
• Furnace. The lifespan of a new furnace can be up to 20 years, or longer, with regular maintenance.

Packaged systems: Heat Pump-Furnace combos

Some homeowners — especially those in cold climates where heat pumps can struggle to deliver optimal efficiency — chose dual systems to provide robust heating throughout the home.

Dual systems pair heat pumps with furnaces for unmatched performance. The systems alternate depending on the weather. In moderately cool temperatures, the heat pump handles all the heat duties. In frigid weather, the furnace takes over to provide a more consistent heat source with less energy consumption.

Although dual systems can reduce your energy bills by maximizing each appliance’s efficiency, homeowners should weigh the costs of having two appliances versus buying a new high-efficiency furnace or a heat pump specifically designed to operate in cold temperatures.

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Frequently Asked Questions About Heat Pumps vs. Furnaces