Heat Pump Cost Calculator

Heat pump costs range from $3,000 to $45,000 installed depending on type. Air-source heat pumps cost $8,000–$16,000, mini-split heat pumps $3,000–$6,000, geothermal systems $18,000–$45,000, and dual-fuel systems $7,000–$15,000. Home size affects cost: smaller homes (under 1,500 sq ft) save 20%, while larger homes (3,500+ sq ft) add 20–40%. Add $2,000–$5,000 for ductwork and $150–$500 for a smart thermostat.

Heat pumps are worth it for most homeowners — they provide both heating and cooling from one system and cost 30–50% less to operate than electric resistance heating. A typical homeowner saves $500–$1,200/year on energy bills. Federal tax credits (30% up to $2,000 through the Inflation Reduction Act) and state rebates ($1,000–$8,000) reduce upfront costs significantly. Payback period is typically 3–7 years. Best value in moderate climates; still effective down to -15°F with modern cold-climate models.

Air-source heat pumps last 12–15 years on average with proper maintenance. Mini-splits last 15–20 years. Geothermal ground loops last 50+ years, though the indoor equipment lasts 20–25 years. Dual-fuel systems last 15–20 years. Key maintenance: change air filters monthly, clean outdoor coils annually, schedule professional tune-ups twice per year ($75–$150 each). Coastal salt air and extreme temperatures reduce lifespan. Extended warranties ($500–$1,500) cover 10 years.

Heat pump sizing is based on home square footage and climate zone. General guide: 1–1.5 tons per 600 sq ft (1 ton = 12,000 BTU). A 1,500 sq ft home needs 2.5–3 ton unit, 2,500 sq ft needs 4–5 ton, 3,500+ sq ft needs 5+ ton or multiple units. Oversized units short-cycle and waste energy. Undersized units can't keep up in extreme weather. Always get a Manual J load calculation ($100–$300) from an HVAC contractor for accurate sizing.

A heat pump moves heat (doesn't generate it) and provides both heating AND cooling — replacing both furnace and AC. A furnace burns fuel to create heat and only heats. Heat pump pros: lower operating cost (30–50% less), no combustion/carbon monoxide risk, one system for heating and cooling. Furnace pros: works better in extreme cold below 0°F, lower upfront cost ($2,500–$5,000), familiar technology. Dual-fuel combines both: heat pump for mild weather, gas furnace backup for extreme cold.

Geothermal heat pump systems cost $18,000–$45,000 installed. Breakdown: ground loop installation $12,000–$28,000 (horizontal trenching or vertical bore holes), indoor heat pump unit $4,000–$10,000, ductwork modifications $2,000–$7,000. Horizontal loops need large yard (1,500+ sq ft per ton). Vertical bore holes ($15–$20/ft, 150–300 ft deep) work for small lots. Operating costs are 50–70% less than conventional systems. 30% federal tax credit applies. Payback period: 5–10 years.

Modern cold-climate heat pumps work efficiently down to -15°F and can operate at -25°F. Models from Mitsubishi (Hyper-Heat), Daikin (Aurora), and Bosch maintain 80–100% capacity at 5°F. Below 0°F, efficiency drops but they still heat. Dual-fuel systems add a gas furnace backup for the coldest days (below -10°F). Department of Energy studies show heat pumps save 30–50% on heating costs even in Maine, Minnesota, and Alaska. Cold-climate models cost 10–20% more than standard units.

Federal: 30% tax credit up to $2,000 for qualifying heat pumps (through 2032, Inflation Reduction Act). IRA HEEHR rebates: up to $8,000 for low/moderate income households. State rebates vary: $500–$5,000 depending on state and utility. Many utilities offer $200–$1,000 rebates. Total savings can reach $3,000–$10,000+ combined. Requirements: must be ENERGY STAR certified, professional installation required, keep all receipts. Check dsireusa.org and your utility's website for current programs.