Both can heat a home well, and the right choice depends on climate, fuel prices, ductwork and the equipment you have now. Here is how they differ and what to ask before choosing.
A furnace creates heat. A gas, propane or oil furnace burns fuel in a burner, passes the hot combustion gases through a heat exchanger and blows household air across the exchanger, while the gases vent outdoors. An electric furnace uses resistance elements, much like a large toaster, to warm the air.
A heat pump moves heat. It uses a refrigerant cycle to pull heat from outdoor air and release it indoors, and it reverses to cool the house in summer. Since it relocates heat rather than generating all of it, a heat pump can provide more heat energy than the electrical energy it uses, which is where its efficiency advantage comes from. The heat pump installation page describes the equipment in more detail.
The table summarizes the main differences in general terms. Real results vary with the specific equipment and the house.
| Topic | Heat pump | Gas furnace |
|---|---|---|
| Energy source | Electricity | Natural gas or propane, delivered fuel in some homes |
| Cooling | Included; the same unit cools the house | Separate air conditioner required |
| Combustion safety | No combustion in the unit itself | Combustion and venting; carbon monoxide safety applies |
| Cold-weather output | Declines as outdoor temperature falls; cold-climate models are designed for it | Output does not depend on outdoor temperature |
| Backup heat | Often paired with electric resistance or fuel-fired backup | Usually not needed |
| Running cost | Depends on local electricity price and the efficiency of the model | Depends on local fuel price and the efficiency of the furnace |
| Ratings | SEER2 for cooling and HSPF2 for heating | AFUE for heating; SEER2 applies to the separate air conditioner |
The biggest question is how a heat pump performs when it is coldest outside. Output and efficiency fall as the temperature drops, and standard models rely on backup heat when it gets cold enough. Cold-climate heat pumps are engineered to hold up better, and rating information for low temperatures is published by manufacturers. Ask for performance at your design temperature, not just a headline efficiency number.
A furnace does not care how cold it is outdoors; it keeps delivering heat as long as it has fuel. That reliability is one reason furnaces remain common where winters are severe. A dual-fuel arrangement, which pairs a heat pump with a gas furnace and switches between them, is another option for those who want both.
Running cost comes down to the price of electricity compared with the price of gas, propane or oil where you live, combined with the efficiency of the equipment. Prices change and differ widely, so no blanket statement about which is cheaper holds everywhere. Ask for a comparison based on your actual utility rates and expected usage, and be skeptical of any quote that skips the math.
Heat pumps tend to compare better when electricity is relatively inexpensive or fuel is delivered and costly. Furnaces tend to compare better where natural gas is cheap and winters are long and cold. Those are tendencies, not rules.
If your air conditioner is also near the end of its life, a heat pump can replace both the cooling and heating equipment in one project, which simplifies the decision. If your air conditioner is fairly new and your furnace is the problem, replacing only the furnace may be simpler, although a heat pump retrofit can still be evaluated.
Ductwork matters either way. Heat pumps often move air at lower temperatures than a furnace, so duct sizing and airflow need to be right. Ductless mini-splits are an alternative for homes without usable ducts.
Think about the existing space too. A furnace needs a flue and a combustion air supply, while a heat pump needs an outdoor location with clearance for airflow and a safe place for condensate and defrost water to drain. The right choice has to fit the physical constraints of the house as well as the budget.
Noise and comfort are worth raising during a quote. Heat pumps often deliver air at a gentler temperature than a furnace, which some people find more even and others find less warm at the vent. Variable-speed models change how that feels, so ask to understand it before you decide.
Compare equipment using the right ratings. A heat pump has SEER2 and HSPF2, explained in our guide to SEER2 and HSPF2. Gas furnaces are rated by AFUE, the fraction of fuel energy that becomes heat for the home.
Incentives change. The federal home energy credit for heat pumps was set to end for property placed in service after 2025, and local utility and state programs vary. Confirm what is currently available before you build a decision around it.
Decide with specifics. Ask how the system is sized, what backup heat is included and what it costs to run, how the unit performs at your coldest typical temperatures, whether the ducts need work and what refrigerant the equipment uses. The last point matters because the industry is transitioning, as discussed in our refrigerant guide. Also ask about service: any equipment lasts longer with regular attention, a topic in how long an HVAC system lasts.
Ask each contractor to put the same assumptions on the table. If one quote assumes backup heat and another does not, or one assumes new ductwork and another leaves the old ducts, the numbers cannot be compared fairly. Put the proposals side by side with the same scope, and the real differences become visible.
It also helps to ask what happens in the coldest week of the year. Whether the answer is a backup heater, a furnace taking over or the heat pump carrying the load on its own, you should understand it and its cost before signing.
It depends on local electricity and fuel prices and on the efficiency of each unit. Ask for a comparison using your actual rates.
Cold-climate models are built for it, and many installations use backup heat for the coldest periods. Ask for performance data at your typical low temperatures.
Yes, it provides both heating and cooling, so one heat pump can take the place of a furnace and air conditioner pair.
A dual-fuel system pairs a heat pump with a gas furnace and uses whichever is more suitable at the time, often switching based on outdoor temperature.
Tell us what your system is doing and we will follow up with next steps.