Why heat pumps can beat gas
A furnace burns fuel and is at best 100% efficient — you never get more heat out than the energy in the gas. A heat pump doesn’t make heat, it moves it, delivering roughly 2.5 to 4 units of heat for every unit of electricity it uses. That multiplier, called the coefficient of performance (COP), is why a heat pump can be cheaper to run even when electricity costs more per unit than gas.
The comparison that actually matters
Don’t compare gas price to electricity price directly — compare the cost of a unit of delivered heat. That’s roughly your gas price divided by furnace efficiency versus your electricity price divided by the heat pump’s COP. The heat-pump cost calculator does this with your own rates and efficiencies so you can see which wins for your home.
When heat pumps win
Heat pumps tend to win where electricity is moderately priced, and they win decisively when they replace electric resistance heat, oil or propane. In mild-to-cold climates with a modern unit, the running-cost savings over those fuels are often substantial — commonly 30 to 50% versus expensive heating sources.
When gas can be cheaper
Where natural gas is very cheap and electricity is expensive, a gas furnace can cost less to run than a heat pump. Even then, the heat pump brings cooling in the same unit, which a furnace can’t — so the comparison isn’t purely about heating cost.
Cold-climate performance
Older perceptions of heat pumps struggling in winter are out of date. Modern cold-climate models work well below freezing, with efficiency tapering as temperatures drop; many hold a COP above 2 near 0°F. Backup heat covers extreme cold snaps. When you compare, set the COP to reflect your climate — a cold region with a standard unit looks different from a mild one.
Beyond running cost
Running cost is only part of the decision. A heat pump handles heating and cooling in one system, lowers emissions, and may qualify for incentives. Upfront cost varies, and correct sizing matters — an oversized unit short-cycles and wastes the efficiency you paid for. Size it before you buy.