Heat Pump vs Gas Furnace Annual Cost Comparator

Compare the annual operating economics of a cold-climate heat pump against a traditional gas furnace. Enter the seasonal heating load, heat pump COP, electricity price, and natural gas price to reveal yearly energy use, operating cost, emissions for each system, the electricity breakeven rate, and cost per delivered kWh of heat. Optional fields let you adjust furnace efficiency and emission factors to reflect your market.

Seasonal space-heating demand expressed in delivered kWh of heat (from load calculation or bills).
Seasonal coefficient of performance (COP) for the heat pump at your climate.
Blended electricity rate in USD/kWh including delivery and taxes.
Retail cost per therm for delivered natural gas including supplier and delivery charges.
Defaults to 92% AFUE when left blank. Adjust for your furnace efficiency rating.
Defaults to 0.855 lbs CO₂ per kWh (U.S. 2022 average). Override with utility-specific emissions.
Defaults to 11.7 lbs CO₂ per therm burned. Adjust if you have biomethane or other blends.

All results are estimates. Validate load and pricing assumptions with your utility bills or HVAC professional before making investment decisions.

Examples

  • 18,000 kWh load, COP 3.1, $0.14/kWh electricity, $1.60/therm gas ⇒ Heat pump operating cost: $812.90 • Gas furnace operating cost: $1,068.40 • Annual savings with heat pump: $255.50 • Heat pump electricity use: 5,806 kWh • Gas furnace fuel use: 667.75 therms • Heat pump emissions: 2.25 metric tons CO₂e • Gas furnace emissions: 3.54 metric tons CO₂e • Emissions reduction: 1.29 metric tons CO₂e • Electricity rate that matches gas cost: $0.18/kWh • Heat pump cost per kWh of heat: $0.05
  • 24,000 kWh load, COP 2.8, $0.18/kWh electricity, $1.10/therm gas, 95% furnace ⇒ Heat pump operating cost: $1,542.86 • Gas furnace operating cost: $948.44 • Annual premium for heat pump: $594.41 • Heat pump electricity use: 8,571 kWh • Gas furnace fuel use: 862.22 therms • Heat pump emissions: 3.32 metric tons CO₂e • Gas furnace emissions: 4.58 metric tons CO₂e • Emissions reduction: 1.25 metric tons CO₂e • Electricity rate that matches gas cost: $0.11/kWh • Heat pump cost per kWh of heat: $0.06

FAQ

How can I model dual-fuel systems?

Run two scenarios: one for the heat pump portion of the load and another for the remaining load served by gas, then combine the operating costs to see the blended outcome and emissions mix.

What COP should I use for cold climates?

Reference manufacturer extended performance tables or utility rebate documentation for climate-specific seasonal COP values rather than the nameplate rating. Cold climates often see lower seasonal COP than rated values.

Can I include maintenance or installation costs?

This tool focuses on annual operating cost. Add amortized capital, filter changes, or maintenance expenses separately to build a full total cost of ownership comparison.

How do rebates or time-of-use rates affect the calculation?

Apply post-rebate electricity rates or off-peak pricing in the electricity price field, or run separate scenarios for on-peak and off-peak hours to understand the blended outcome.

Additional Information

  • Therms are calculated from load using 29.3001 kWh of heat per therm and adjusted by the furnace's AFUE efficiency.
  • Emission defaults reflect recent U.S. averages (0.855 lbs CO₂ per kWh and 11.7 lbs CO₂ per therm) but can be tailored to utility-specific disclosures.
  • Savings are reported as positive when the heat pump is cheaper to operate and negative when gas remains less expensive.
  • Breakeven electricity rate shows what kWh price would make the heat pump cost equal to gas for the same load.
  • Energy use is rounded to the nearest whole kWh for electricity and two decimal places for therms to match common billing units.

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