Heat pump vs. electric furnace: running cost
A heat pump is cheaper to run: about $920 a year versus $1,971 for an electric furnace at typical use and 17.99¢/kWh, a $1,051 difference.
| Heat pump | Electric furnace | |
|---|---|---|
| Typical watts | 4,000 W | 15,000 W |
| Watt range | 2,000–8,000 W | 10,000–25,000 W |
| Typical use | 24 hours a day for 5 months a year | 24 hours a day for 5 months a year |
| Energy per year | 5,114 kWh | 10,958 kWh |
| Cost per hour | 25¢ | 54¢ |
| Cost per day | $6.04 | $12.95 |
| Cost per month | $184 | $394 |
| Cost per year | $920 | $1,971 |
| Per year in Hawaii (43.51¢) | $2,225 | $4,768 |
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What drives the difference
- Heat pump: Watts are average compressor plus blower draw in heating, including occasional backup strip heat. Defaults give about 5,000 kWh a winter for a 3-ton system in a moderate climate; very cold climates use more because of backup heat.
- Electric furnace: Electric furnaces use resistance heating strips rated 10-25 kW plus a ~500 W blower. Defaults (about 10,900 kWh a winter) reflect a moderate US climate; cold climates can run 15,000-20,000 kWh.
Ways to cut either cost
Manages auxiliary heat and setbacks to keep the compressor doing most of the work.
See options on AmazonVariable-speed compressors keep efficient output down to 5°F or below and cut backup heat use.
See options on AmazonProduces 2-3.5 kWh of heat per kWh used, cutting heating cost 50-70% versus an electric furnace.
See options on AmazonWe may earn a commission from qualifying purchases. It never changes the numbers we show. Disclosure.
Frequently asked questions
Which costs more to run, a heat pump or an electric furnace?
At typical use and the U.S. average rate (17.99¢/kWh), an electric furnace costs about $1,971 a year versus $920 for a heat pump. That's $1,051 more, or 2.1× as much.
How many watts do heat pump and electric furnace use?
A heat pump typically draws 4,000 W (range 2,000–8,000 W). An electric furnace draws 15,000 W (range 10,000–25,000 W). Watts alone don't decide cost. Hours of use, cycling and standby matter just as much.
Rates: EIA, 12 months ending 2026-07. Methodology.