How much does a heat pump cost? For most U.S. homes, installed prices range widely based on system type, home layout, and climate. Typical ducted air-source heat pump cost runs $8,500–$19,000. Ductless mini-split systems often run $3,000–$5,500 per zone, while geothermal heat pump cost can be $18,000–$45,000+. This guide explains price drivers, installation choices, operating costs, and incentives so homeowners can set realistic budgets and maximize savings.
Average Heat Pump Cost In The U.S.
Installed cost depends on capacity, efficiency, labor rates, and whether ductwork or electrical upgrades are needed. Most single-family homes pay between $9,000 and $17,000 for a quality air-source system, while complex or cold-climate projects can exceed $20,000.
| System Type | Typical Equipment Price | Typical Installed Cost | Notes |
|---|---|---|---|
| Ducted Air-Source (Standard Efficiency) | $3,500–$6,500 | $8,500–$15,000 | Good value; 1- or 2-stage; replaces AC + furnace. |
| Ducted Air-Source (Variable-Speed/Premium) | $5,500–$9,500 | $12,000–$19,000 | Quieter, better comfort, higher efficiency. |
| Cold-Climate Ducted | $6,500–$10,500 | $14,000–$22,000 | Maintains capacity below 5°F; ideal for northern states. |
| Ductless Mini-Split (Single-Zone) | $1,200–$2,500 | $3,000–$7,000 | Per indoor head; 9k–18k BTU typical rooms. |
| Ductless Multi-Zone (2–4 Zones) | $3,000–$6,000 | $7,000–$20,000 | Distribution, line runs, and aesthetics drive cost. |
| Air-to-Water Heat Pump | $6,000–$12,000 | $12,000–$25,000 | Hydronic baseboards, radiators, or radiant floors. |
| Dual-Fuel Hybrid (Heat Pump + Existing Furnace) | $4,000–$8,500 | $7,500–$16,000 | Uses gas furnace on very cold days. |
| Geothermal (Ground-Source) | $7,000–$14,000 | $18,000–$45,000+ | Higher upfront; low operating cost; 30% federal credit. |
Prices reflect typical residential projects and vary by region. Remote or hard-to-access homes, major duct rebuilds, and panel upgrades can add thousands.
What’s Included In A Professional Installation
Comprehensive proposals should specify what is included. Transparent line items help compare quotes and avoid change orders.
- New outdoor unit, indoor air handler or coil, and refrigerant lines
- Drainage, pad or wall bracket, vibration isolation, and weatherproof fittings
- Thermostat or controls, commissioning, and performance testing
- Electrical disconnect, whip, breakers; panel upgrade if needed
- Ductwork tie-ins or modifications; new registers if applicable
- Permits, inspections, and rebates paperwork support
- Equipment and labor warranties; first-year maintenance
If ductwork is leaky or undersized, a contractor may recommend repairs or redesign. Duct fixes often add $1,500–$5,000 but improve comfort and efficiency.
Factors That Drive Heat Pump Prices
Capacity, Efficiency, And Features
Larger homes or colder climates require more capacity, measured in tons (12,000 BTU/h per ton). Higher efficiency ratings (SEER2 for cooling, HSPF2 for heating) cost more upfront but can reduce bills. Variable-speed compressors and cold-climate models raise price yet deliver superior comfort and low-temperature performance.
Climate And Design Temperature
Homes in the Upper Midwest and Northeast need heat pumps that hold capacity in sub-zero conditions. Cold-climate units often include base-pan heat, advanced refrigerants, and optimized coils. Expect a premium of $2,000–$5,000 versus standard models in mild regions.
Ductwork And Distribution
Existing ducts can lower costs if sized and sealed properly. If ducts are missing, leaky, or constrained, contractors may propose new runs or a ductless approach. Ductless mini-splits can be cost-effective room by room, especially in homes without central ducts.
Electrical Service And Panel
Most systems need a 240V circuit. If the main panel lacks capacity, a service or panel upgrade may be required. Electrical upgrades typically add $1,500–$4,000, depending on amperage and wiring runs.
Home Layout And Accessibility
Line-set distance, attic or crawlspace access, and wall finishes affect labor hours. Historic homes, multi-story condos, or long line runs can increase cost. Multi-zone ductless with concealed duct cassettes is the most complex and often the priciest ductless option.
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Permits, Labor Rates, And Seasonality
Permit fees are usually $100–$500. Urban markets with high labor rates or busy peak seasons see higher bids. Off-season installations can save 5–15% if scheduling allows.
Brand, Warranty, And Local Support
Premium brands and extended warranties cost more but may offer quieter operation, better cold-weather performance, or longer parts coverage. Local dealer networks and parts availability matter for service and can influence total cost of ownership.
Cost To Install By Home Size And Climate
These examples summarize typical budgets. Actual sizing must come from a Manual J load calculation, not square footage alone.
| Home Size | Climate | Likely System | Estimated Installed Cost | Notes |
|---|---|---|---|---|
| 1,200 sq ft | Moderate (e.g., Mid-Atlantic) | 2–2.5 ton ducted air-source | $9,000–$14,000 | Assumes usable ducts and no panel upgrade. |
| 1,200 sq ft | Cold (Upper Midwest) | Cold-climate 2.5–3 ton | $13,000–$20,000 | May include line heat and pan heater. |
| 2,000 sq ft | Moderate | 3–3.5 ton variable-speed | $12,000–$18,000 | Load varies with insulation and air sealing. |
| 2,000 sq ft | Cold | Cold-climate 3–4 ton | $16,000–$24,000 | Hybrid (dual-fuel) may lower equipment size. |
| 2,500 sq ft (no ducts) | Any | Ductless multi-zone (3–5 heads) | $12,000–$25,000 | Multiple heads; longer line runs add cost. |
Insulation, air sealing, and window upgrades can shrink required capacity and reduce both equipment and operating costs.
Ductless Mini-Split Cost Breakdown
Ductless heat pumps are popular for additions, retrofits without ducts, and zoned comfort. Pricing depends on the number of indoor heads, mounting style, line-set length, and finishes.
| Zones/Capacity | Typical Installed Cost | What’s Included |
|---|---|---|
| Single-Zone (9k–18k BTU) | $3,000–$7,000 | Outdoor + 1 wall cassette, line set, pad or bracket, controls. |
| Two-Zone (18k–24k BTU total) | $6,500–$12,000 | Outdoor multi-zone, 2 cassettes, longer line sets likely. |
| Three–Four Zones | $9,000–$20,000 | Complex routing, condensate pumps, patch/paint for channels. |
| Concealed Ducted Or Ceiling Cassettes | +$800–$2,000 per zone | More labor for framing, returns, and supply grills. |
Per-zone cost often falls as zones increase, but complexity can offset economies of scale. Cold-climate mini-splits typically add $800–$1,500 per zone.
Geothermal Heat Pump Cost And When It Pays
Ground-source systems use the earth as a heat source/sink via buried loops. Upfront cost is higher due to drilling or trenching, but operating costs are low and equipment lifespans are long.
| Configuration | Typical Installed Cost Before Credit | Net After 30% Federal Credit* | Notes |
|---|---|---|---|
| Horizontal Closed Loop | $18,000–$35,000 | $12,600–$24,500 | Requires yard space; lower drilling costs. |
| Vertical Closed Loop | $25,000–$45,000+ | $17,500–$31,500+ | Best for small lots; drilling drives cost. |
| Open Loop (Where Permitted) | $15,000–$30,000 | $10,500–$21,000 | Uses well water; subject to water quality rules. |
*The Residential Clean Energy Credit (IRC §25D) covers 30% of qualified geothermal costs with no annual dollar cap. See IRS guidance.
Geothermal shines in high-usage or high energy-cost regions, large homes, and where state incentives stack with the federal credit.
Operating Cost: Will A Heat Pump Save Money?
Operating cost depends on electricity price, competing fuel price, system efficiency, and climate. Heat pumps move heat rather than generate it, so they can deliver 2–4 units of heat per unit of electricity (coefficient of performance, COP).
Seasonal efficiency metrics include SEER2 (cooling) and HSPF2 (heating). Higher HSPF2 and cold-climate ratings deliver lower winter bills, especially in northern states.
Break-Even Electricity Price Versus Natural Gas
The table shows approximate electricity price (cents/kWh) at which a heat pump equals the heating cost of a 95% gas furnace, for different gas prices. If local electricity is cheaper than the break-even value, the heat pump usually costs less to run.
| Natural Gas Price ($/Therm) | Break-Even $/kWh (COP 2.5) | Break-Even $/kWh (COP 3.0) |
|---|---|---|
| $1.00 | $0.09 | $0.11 |
| $1.50 | $0.13 | $0.16 |
| $2.00 | $0.18 | $0.22 |
In many regions with moderate electricity prices and high gas prices, modern heat pumps are competitive or cheaper to run. In very cold climates or where electricity is expensive, dual-fuel hybrids or cold-climate models improve economics.
Other Fuel Comparisons
- Versus Electric Resistance: Heat pumps reduce heating cost by roughly 50–70% (COP 2–3 vs. 1.0).
- Versus Propane Or Oil: Heat pumps frequently win on operating cost in most states, especially with incentives.
Always compare local rates. Use your utility’s $/kWh, $/therm, $/gallon, and your contractor’s estimated seasonal COP or HSPF2 to estimate bills.
Rebates, Tax Credits, And Financing
Stacking incentives can reduce net heat pump cost dramatically. Verify eligibility before signing a contract, as many programs require specific efficiency tiers and licensed installers.
- Federal Energy Efficient Home Improvement Credit (IRC §25C): 30% of project cost up to $2,000 per year for qualifying air-source heat pumps. Equipment must meet the highest applicable CEE tier. See ENERGY STAR and IRS.
- Federal Residential Clean Energy Credit (IRC §25D): 30% credit with no dollar cap for qualified geothermal heat pumps. Details at the IRS link above.
- State And Utility Rebates: Many programs offer $500–$10,000+, especially for cold-climate or income-qualified households. Search DSIRE and utility websites.
- High-Efficiency Electric Home Rebates (HEEHRA): Up to $8,000 for heat pumps for eligible households, rolling out by state. Check your state energy office or Rewiring America.
- Low-Interest Loans/On-Bill Financing: Offered by some utilities and state green banks.
Cold-climate certifications (e.g., ENERGY STAR Cold Climate) can unlock larger rebates in northern states. Keep model numbers and AHRI certificates for rebate submissions.
How To Estimate Your Heat Pump Project Budget
A step-by-step approach helps set a solid budget and avoid surprises.
- Load Calculation: Request a Manual J from at least two contractors. Avoid rules of thumb. Right-sizing is essential for comfort and efficiency.
- System Selection: Compare standard vs. variable-speed; ducted vs. ductless; cold-climate vs. dual-fuel hybrid based on climate and fuel prices.
- Scope Clarification: Identify duct repairs, line-set routing, condensate handling, pad or bracket, and electrical work.
- Quotes And Inclusions: Insist on itemized proposals with model numbers, warranties, and permits. Apples-to-apples comparison saves money.
- Calculate Incentives: Confirm eligibility for federal, state, utility, and income-based programs.
- Set Contingency: Add 10–15% for unforeseen conditions (hidden duct issues, panel capacity).
Ways To Reduce Total Heat Pump Cost
- Weatherize First: Air sealing and insulation can reduce tonnage and allow smaller, cheaper equipment.
- Strategic Zoning: Use fewer, well-placed heads for ductless setups rather than one per room when possible.
- Leverage Existing Ducts: Seal and balance rather than replacing entire runs if feasible.
- Right-Size Efficiency: Ultra-high SEER2 may not pay back in mild climates; prioritize HSPF2 and cold-climate performance where it matters.
- Bundle Projects: Coordinate panel upgrades or EV charger installs to share electrician mobilization.
- Seasonal Timing: Off-peak installs often come with discounts.
- Program Participation: Community or utility marketplace programs can pre-negotiate lower pricing.
Doing the building shell work first often yields the largest lifetime savings and improves comfort regardless of the HVAC chosen.
What To Ask Contractors
- Design Temperature And Sizing: What outdoor design temp is used? Provide Manual J, S, and D documentation.
- Cold-Weather Performance: What capacity does the unit deliver at 5°F? At -5°F? Any electric strip backup?
- Duct Evaluation: Will you test duct leakage and static pressure? Any redesign required?
- Electrical Scope: Do I need a panel upgrade? What breaker size and wire gauge?
- Condensate And Freeze Protection: How will drainage and pan heat be handled?
- Commissioning: Will you verify charge, airflow, and controls? Provide test readings?
- Warranty And Service: Parts and labor terms? Maintenance plan cost?
- Rebates: Will you handle paperwork and provide AHRI certificate and permits?
Choose installers with deep heat pump experience, especially for cold-climate or multi-zone projects.
Maintenance, Lifespan, And Repair Costs
Routine maintenance keeps performance high. Clean or replace filters, wash outdoor coils, and keep clear airflow. Annual tune-ups cost about $150–$300 and include refrigerant checks, electrical inspection, and airflow tests.
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- Ductless Head Cleaning: $150–$400 per head when deep-cleaning is needed for dust or mildew.
- Refrigerant Leak Repair: $300–$1,200+ depending on access and recharge volume.
- Compressor Replacement: $1,500–$3,000+ outside of warranty.
- Control Board/ECM Motor: $500–$1,200.
Lifespan varies by type and climate. Air-source units often last 12–17 years, mini-splits 15–20 years, and geothermal equipment 20–25 years (with ground loops lasting 50+ years). Severe coastal or industrial environments may shorten life due to corrosion.
Frequently Compared: Heat Pump Vs Furnace And AC Replacement Cost
When replacing both a furnace and central AC, a heat pump can reduce total equipment count while adding efficient heating.
| Replacement Scenario | Typical Installed Cost | Notes |
|---|---|---|
| New Gas Furnace + New Central AC | $10,000–$18,000 | Two systems; duct repairs may add more. |
| Ducted Heat Pump (Cooling + Heating) | $12,000–$19,000 | One system replaces both; rebates may lower net. |
| Dual-Fuel Hybrid (Heat Pump + Furnace) | $12,000–$20,000 | Uses gas below balance point for cold snaps. |
| Ductless Multi-Zone (Whole Home) | $12,000–$25,000 | Often best where ducts are impractical. |
If both AC and furnace are near end-of-life, a heat pump can be cost-competitive after credits, while cutting cooling bills immediately and often heating bills too.
Cold-Climate And All-Electric Considerations
For northern states, confirm the model’s rated capacity at low temperatures and ensure proper defrost strategy. ENERGY STAR Cold Climate models are tested for performance at 5°F and below.
- Balance Point: The outdoor temperature where the heat pump alone meets the load. Below this, backup heat may run.
- Backup Heat: Electric strips or a furnace. Improper settings can drive up bills.
- Controls: Smart thermostats that coordinate stages prevent short cycling and unnecessary backup heat.
All-electric homes should consider weatherization and possibly a slightly larger unit or zoned distribution for peak cold snaps. Battery or generator planning can support resilience.
Refrigerants, Noise, And Aesthetics
Newer systems may use lower-global-warming-potential refrigerants (e.g., R-32) as R-410A is phased down. Ask about refrigerant type and future serviceability in your market.
Outdoor noise is typically 50–60 dB at 3–5 feet for variable-speed units. Place condensers away from bedrooms and consider anti-vibration pads. Ductless line-hide channels and paintable covers improve exterior aesthetics.
Example Quick Estimates
Use these ballpark methods for preliminary planning only; always confirm with a Manual J and detailed quote.
- Ducted Replacement With Good Ducts: $3,000–$5,000 per ton installed. A 3-ton variable-speed system might land near $12,000–$16,000 depending on region.
- Ductless Per-Zone: $3,000–$5,500 for standard rooms; $4,000–$6,500 for cold-climate or designer cassettes.
- Electrical Upgrade: Add $1,500–$4,000 if panel capacity is limited.
- Duct Remediation: Add $1,500–$5,000 for sealing, returns, or resizing.
Subtract eligible incentives after estimating gross cost to get a realistic net price.
Key Specs To Watch On The Label
- HSPF2 And SEER2: Higher numbers typically mean lower bills; ensure ratings match rebate tiers.
- Cold-Climate Rating: Look for published capacity at 5°F and -5°F.
- Compressor Type: Variable-speed (inverter) units offer superior comfort and noise control.
- AHRI Match: Confirm outdoor and indoor units are an AHRI-rated combination for rebates and performance.
- Warranty: 10–12 years on compressor and major parts is common for registered residential systems.
Match the equipment to the home’s envelope and climate rather than chasing the highest headline efficiency alone.
Reliable Sources To Compare Models And Incentives
- ENERGY STAR Product Finder: energystar.gov/productfinder
- AHRI Directory: ahridirectory.org
- State And Utility Incentives: dsireusa.org
- Federal Tax Credits: irs.gov/credits-deductions
Cross-checking model numbers in the AHRI directory ensures the quoted efficiency and rebate eligibility match the installed combination.
Bottom Line: What Most Homeowners Spend
For a typical U.S. home replacing an aging furnace and AC, expect $12,000–$19,000 installed for a quality ducted heat pump. Ductless retrofits without existing ducts often run $12,000–$25,000 for whole-home coverage. Geothermal projects start near $18,000 and frequently exceed $30,000 before credits, with strong long-term savings.
Actual totals depend on climate, ducts, electrical, and finish details. With federal credits and local rebates, net costs can drop by thousands, bringing heat pump prices in line with traditional replacements while adding efficient heating and modern comfort.
How to Get the Best HVAC Prices
- Firstly, keep in mind that installation quality is always the most important thing for residential HVAC project. So never sacrifice contractor quality for a lower price.
- Secondly, remember to look up the latest rebates as we talked above.
- Thirdly, ask for at least 3 bids before you make the decision. You can click here to get 3 free estimates from your local contractors, and this estimate already takes rebates and tax credit into consideration and filter unqualified contractors automatically.
Lastly, once you chose the right contractor, remember to use the tactics from this guide: Homeowners Tactics When Negotiating with HVAC Dealer to get the final best price.
