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Which Is More Efficient, a Heat Pump or a Gas Furnace?

Reviewed by AC Direct Technical Team Updated June 6, 20263 min read
The short answerIt depends on your climate and energy costs. The comparison involves run time, the price of electricity and gas, the furnace AFUE, and the heat pump HSPF. As a broad rule, in milder areas an 80 percent furnace and a heat pump use similar energy, while in colder climates natural gas is often the better choice when available.
Which Is More Efficient, a Heat Pump or a Gas Furnace?AC Direct HVAC guide
Why the answer depends on your climate, your fuel prices, and the ratings on each unit.

The short answer

There is no single, quick answer. The variables include how long the system runs, the cost per kilowatt hour of electricity, the cost per therm of gas, the furnace efficiency, and the HSPF of the heat pump. The only accurate way to settle it is to apply these factors to your local conditions. A local licensed contractor can model the numbers for your area, and it is fine to ask questions, since some contractors lean one way for reasons unrelated to operating cost or comfort.

How climate changes the answer

As a broad generalization, in much of the country an 80 percent furnace will use about the same amount of energy as a heat pump when run time and climate are comparable. In colder climates, natural gas is usually the better choice if it is available, because a heat pump works harder as outdoor temperatures fall. In milder climates, a heat pump often heats and cools efficiently from one system.

Reading the efficiency ratings

Two ratings drive the comparison. They measure different equipment, so use each correctly.

RatingWhat it measures
AFUEGas furnace seasonal efficiency, shown as a percent such as 80 or 96
HSPFHeat pump heating efficiency over a season, shown as a number
Fuel costLocal price of electricity per kilowatt hour and gas per therm
Run timeHow many hours the system operates in your climate

How AC Direct helps

AC Direct ships complete gas furnaces and heat pumps factory direct across a wide efficiency range, so you can match the equipment to your climate and fuel costs. Every order includes free technical support and installation guides, and the AC Direct Price Promise keeps your equipment cost low while you compare options. Installation is handled by a local licensed contractor.

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Common questions

Is a heat pump or a gas furnace cheaper to run?
It depends on local energy prices and climate. In milder areas the two are often close, while in colder climates a gas furnace usually costs less to run when natural gas is available.
What is the difference between AFUE and HSPF?
AFUE rates the seasonal efficiency of a gas furnace as a percent, while HSPF rates the heating efficiency of a heat pump over a season. They apply to different equipment, so compare each to its own type.
Can a heat pump work in a cold climate?
Yes, though it works harder as temperatures drop. In very cold areas many homeowners pair a heat pump with gas heat or choose a gas furnace outright. A local licensed contractor can advise on your conditions.
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Reviewed by the AC Direct Technical Team

25 years sizing and shipping HVAC systems to homeowners and contractors.

Last updated June 6, 2026  •  Facts verified against current EPA and AHRI standards