# Heat pump vs. gas furnace: compare the cost of delivered heat

Canonical: https://www.savpwr.com/knowledge/heat-pump-vs-gas-cost
Market: United States
Author: SAVPWR Editorial (VDX Logic LLC)
Published: 2026-11-09
Sources checked: 2026-11-09

## How can I compare electricity and gas prices fairly?

Convert both fuels into a cost per delivered unit of heat. Electricity price alone cannot be compared with a price per therm. State the assumed heat-pump COP and furnace efficiency, then test how the result changes.

## Use consistent units

For an illustrative comparison, one therm contains 100,000 Btu and one kWh is about 3,412 Btu. Delivered heat from the furnace depends on the efficiency assumption; delivered heat from the heat pump depends on COP under the relevant conditions. Equipment selection still requires heating-capacity data. [1]

## Do not omit the second heat source

A heat pump with electric resistance backup can have a different seasonal cost from a compressor-only estimate. For dual fuel, ask how changeover is controlled and which source operates at different temperatures. Maintenance and a gas customer charge may remain if other gas appliances stay. [1][2]

## Compare avoidable costs

Use energy charges that change with consumption. Identify fixed charges separately, and include them only when the project would actually remove them. Time-varying electricity tariffs require a time-specific comparison instead of one blended price. [2]

## Decision exercise

Assume electricity $0.24/kWh, COP 3, gas $1.80/therm and furnace efficiency 0.90. Heat pump: 293.1 × 0.24 / 3 = $23.45 per million Btu delivered. Gas: 10 × 1.80 / 0.90 = $20.00. Under these assumptions gas has the lower energy cost; changing prices or COP changes the result.

Numbers are illustrative assumptions, not forecasts.

## Preparation checklist

- Get current utility tariffs rather than a state average.
- Test several COP assumptions and backup scenarios.
- Keep fixed charges, maintenance and capital cost separate.

## Are heat pumps always cheaper to operate?

No. Relative energy prices, actual operating performance, backup use and building loads determine the result.

## Sources

[1] PNNL — Cold Climate Heat Pump Sizing and Selection: https://basc.pnnl.gov/resource-guides/cold-climate-heat-pump-sizing-and-selection
[2] U.S. EIA — Electricity Prices and Factors Affecting Prices: https://www.eia.gov/energyexplained/electricity/prices-and-factors-affecting-prices.php

AI-assisted preparation; no licensed professional review is claimed. Editorial policy: https://www.savpwr.com/editorial