Heat pump or furnace?

Published national ranges for replacing a gas or electric furnace, swapping a heat pump, a whole-home heat pump system and mini-splits, with the questions that decide which fits your home.

Updated September 28, 2026

The figures here are published national ranges for installing each kind of system. They aren't quotes, and local prices vary. They cover what a system costs to put in, not what it costs to run, so the questions further down matter as much as the prices. When you're ready, get quotes from heating and cooling contractors near you if you'd like to compare.

Replacing a furnace

Gas: if you smell gas, leave the house and call your gas utility or 911 from outside. Don't use the quote form for a gas leak. If a carbon monoxide alarm is sounding, get everyone outside and call 911.

Furnace	Published range
Gas, standard efficiency	$3,800 to $6,200 at standard efficiency^{1, 2, 3, 4}
Gas, high efficiency	$5,200 to $12,000 at high efficiency (90% AFUE and up)^{1, 2, 3, 4}
Electric	$1,600 to $8,000, with a like-for-like swap at the low end^{5, 6}

Installing a heat pump

System	Published range
Swapping a heat pump on existing ducts	$4,000 to $8,000; a 3-ton system about $3,900 to $6,200^{7, 8, 9}
A whole-home heat pump system	commonly $14,000 or more^{10, 11, 12, 13}
A single-zone mini-split	$2,000 to $5,000^{14, 15, 16}
A multi-zone mini-split	$3,000 to $14,000 for 2 to 4 zones^{14, 15, 16}

The first row is a like-for-like swap where a heat pump and ducts are already in place. The whole-home row covers a full system, and its figure is where prices commonly start, not a range. Whatever you're quoted, ask what the price includes.

The plumbing and HVAC cost estimator gives a planning range for a furnace, a heat pump swap or a mini-split.

Questions that decide it

The price to install is only part of the choice. Ask each contractor:

What each option would cost to run in your home over a year, using your own utility rates, and how they worked it out.
Whether a heat pump would heat the whole house on its own in your winters, or whether they'd keep a furnace or other heat as backup.
Whether your ducts, electrical panel or gas line would need work for the option they're recommending, and what that adds.
How they sized the system for your house.
What the warranty covers on the equipment and on the installation.

Ask at least two contractors to price the same options, so you can compare like with like. If you only have air conditioning to replace, the air conditioner guide covers that.

Permits

A furnace or heat pump replacement may need a permit where you live. The permit guide lists what we've confirmed for each state. As an example of the fee, San Diego charges $176.57 for the first furnace, air handler, mini-split or packaged heat pump,¹⁷ and Winston-Salem, North Carolina charges a flat $100 for a residential mechanical changeout, electrical included.¹⁸

Tax credits and rebates

The federal credit for energy efficient home improvements covered improvements made through December 31, 2025,¹⁹ so a furnace or heat pump installed in 2026 doesn't qualify for it. The residential clean energy credit isn't available for property placed in service after December 31, 2025.²⁰

The Department of Energy's home energy rebates are available in select states.²¹ Check with your state whether it offers them, and whether the system you're quoted would qualify, before you buy.

The verify guide shows where to check a heating and cooling contractor's license.

Ranges compiled from HomeGuide, HomeAdvisor, Fixr and Forbes Home, with program data from NYSERDA and the Massachusetts EEAC; permit fees from city fee schedules; tax credit dates from the IRS; rebates from the U.S. Department of Energy, checked September 2026.