Gross Installed Cost Ranges
| System | NumeralQ planning baseline | Methodology scope |
|---|---|---|
| Air-source heat pump | View current estimate | 2–4 ton system replacing existing equipment in existing ductwork. |
| Gas furnace | View current estimate | Standard-efficiency 80% AFUE furnace in existing ductwork. |
These first-party ranges are planning-model outputs with defined scopes, not measured local prices. The ranges do not cover every equipment type or project. See the methodology for inclusions and limitations.
Operating Cost and Climate
This guide does not estimate annual utility bills or lifetime cost. Those require property-specific heating and cooling loads, equipment performance, local utility tariffs, backup-fuel use, and installed scope. Ask a qualified HVAC professional to compare appropriately sized options and review current local rates.
A heat pump can provide heating and cooling; a furnace provides heat. Whether a separate cooling system is needed depends on the home and the equipment already installed. Cold-weather performance and backup strategy must be evaluated using the selected system's rated capacity and the home's design conditions.
Federal Credit Status
The federal Section 25C credit is unavailable for property placed in service after December 31, 2025. No federal credit is included in the cost comparisons on this page. State and utility incentives are separate; check current eligibility and terms with each provider. Read IRS guidance.
- Do not subtract a federal Section 25C credit from estimates for property placed in service after December 31, 2025.
- Verify any state or utility incentives directly with the provider; their eligibility and timing are separate.
Considering a Dual-Fuel System
A dual-fuel system combines a heat pump with a gas furnace. Controls, equipment compatibility, local energy prices, and the home's heating load affect whether that configuration suits a project. Have the installer explain the operating sequence and compare it against other options for the same scope.
- Confirm the equipment, controls, and backup-heat assumptions in the written proposal.
- Compare gross installed scope and expected operating conditions; this guide does not model a dual-fuel system's costs.
- Check state and utility incentive terms directly with the provider.
Compare the Whole Project
Compare equipment capacity, ductwork changes, electrical work, removal, controls, cooling scope, permits, warranties, and stated exclusions. A gross installation range alone does not establish which system will have the lower operating or lifetime cost.
Frequently Asked Questions
How should I compare heat-pump and furnace costs?
Compare gross installed costs for equivalent project scope, then evaluate expected operating costs using the home's energy use and current local utility rates. Furnaces provide heat only; a heat pump can provide heating and cooling.
Do heat pumps work in cold climates?
Cold-climate heat-pump performance depends on the equipment's rated low-temperature capacity and the home's heating load. Ask a qualified HVAC professional to assess the property and compare system options.
What is the current federal tax-credit status for heat pumps and furnaces?
No. The federal Section 25C credit is unavailable for property placed in service after December 31, 2025. State and utility incentives are separate and are not included. Read IRS guidance.
Related Cost Guides
💡 Federal Credit Status
The federal Section 25C credit is unavailable for property placed in service after December 31, 2025. Do not include it in a 2026 cost or payback calculation. Verify any current state or utility incentive separately.