Electric Furnace vs Heat Pump: Which Costs Less to Run?
This is the biggest heating-bill decision in all-electric homes: resistance furnace strips versus a modern heat pump compressor.
Electric Furnace · per month
$336
5 hours/day · 10,000–20,000 W
Heat Pump · per month
$134
8 hours/day · 1,000–5,000 W
Verdict
The heat pump wins decisively — typically half to a third the cost for the same warmth in most U.S. climates, and modern cold-climate units hold their advantage well below freezing. The furnace only 'wins' as backup during extreme cold or defrost. If you heat with an electric furnace today, a heat pump is usually the single highest-return upgrade available.
Side by side
| Electric Furnace | Heat Pump | |
|---|---|---|
| Typical power | 10,000–20,000 W | 1,000–5,000 W |
| Typical usage | 5 hours/day | 8 hours/day |
| Energy per month | 1,824 kWh | 730 kWh |
| Cost per month (US avg) | $336 | $134 |
| Cost per year (US avg) | $4,030 | $1,612 |
| Cost per month in Hawaii | $948 | $379 |
Rates as of May 2026. Adjust the assumptions on each appliance's page: Electric Furnace · Heat Pump.
Frequently asked questions
Which is cheaper to run: a electric furnace or a heat pump?
At typical usage and the current U.S. average rate (18.4¢/kWh), the heat pump is cheaper: about $134/month versus $336/month for the electric furnace — a difference of $201 per month.
How much could I save per year by choosing the heat pump?
About $2,416 per year at typical usage and average rates. In Hawaii (52¢/kWh) the annual gap grows to roughly $6,829.
Do these numbers apply to my state?
The ratio between the two stays the same everywhere, but the dollar gap scales with your rate — from Idaho at 12.4¢/kWh to Hawaii at 52¢/kWh. Open each appliance's page for the exact cost in your state.