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How Much Does a Heat Pump Cost? ( Pricing)

Typical cost range:
$3,500&#;$7,500

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A heat pump costs homeowners an average of $3,500&#;$7,500. See which factors will impact your total cost.

Written by Brenda Woods

Brenda Woods

Brenda Woods is an accomplished writer and managing editor with more than two decades of publishing experience. She has spent over 10 years covering home services and home improvement projects. Brenda supports her team in evaluating dozens of home service providers, surveying and speaking to hom&#;

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Heat pumps can cost an average of $10,000-$20,000 but can range anywhere from $1,500-$36,000, including installation, depending on the type and size of the heat pump. Many homes have two separate units to heat and cool the living space, but heat pumps are an alternative that does both in one. They&#;re much more efficient than regular electric heaters and some of the best air conditioners, saving homeowners hundreds of dollars a year. According to the U.S. Department of Energy (DOE), heat pumps can produce 1.5 to 3 times more energy than they use to run.

Each type of heat pump has different costs for the unit and installation. We&#;ve researched each type available and their average prices to help you determine which is right for your home.

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Typical Price Range: $3,500 &#; $7,500

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Heat Pump Replacement

Heat pumps cost between $3,500 to $7,500 on average.

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Heat Pump Repair

Common heat pump repairs cost between $80 and $4,500 depending on repair type.

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Heat Pump Installation

Heat pump installation ranges from $500 to $30,000 and is based on pump type.

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What Does A Heat Pump Cost?

TypeUnit CostInstallation CostAir-Source$2,000&#;$5,500$1,300&#;$2,000Geothermal$3,000&#;$6,000$10,000&#;$30,000Ductless Mini-Split$1,000&#;$3,500$500&#;$1,500Gas-Fired Heat Pump$3,000&#;$6,000$1,300&#;$2,000

Factors That Affect the Cost of Heat Pumps

Here are a few factors to consider when reviewing the pricing of heat pump units:

Size

Heat pump capacity is usually measured in tons. Typical units are between 2 and 5 tons. Finding the right size for your home is important: Purchasing one that&#;s too small may require it to run constantly, raising your energy bill and wearing out the system. However, higher-ton units cost more up-front.

Installation

Hiring an HVAC contractor to assist with your heat pump installation is necessary in most cases. Labor costs can vary depending on the heat pump type. For example, geothermal units require more work to install because they need to be buried under at least 4 feet of ground. But ductless mini-split heat pumps can cost as little as $500 for a quick and easy installation.

Seasonal Energy Efficiency Ratio (SEER)

Each manufacturer discloses this efficiency rating metric to help homeowners choose the most efficient and sustainable HVAC systems. The SEER number shows how efficiently a heat pump cools a home. Typical SEER ratings fall between 14 and 24, with the higher number being the most efficient.

Heating Seasonal Performance Ratio (HSPF)

Similar to SEER, this rating measures a heat pump&#;s efficiency, but specifically for how it heats a home. Typical HSPF ratings are between 8.2 and 13, with the higher number being the most efficient.

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What Are Additional Heat Pump Costs and Considerations?

You should consider some additional factors before making a decision, in addition to a heat pump&#;s type, size, and energy efficiency rating. We&#;ve compiled these considerations below to help you budget for the project&#;s total cost. 

Duct System 

The heat pump installation cost can significantly increase if your home doesn&#;t have ductwork. Air duct installation costs $250&#;$12,000, depending on your home&#;s size. You may also have to pay for air duct cleaning if your ductwork hasn&#;t received maintenance in a long time. However, if your home is smaller, you can avoid extra fees for ductwork by installing a ductless mini-split.

Location and Climate 

Your local climate determines the heat pump&#;s needed power output and size. In warmer climates, such as the southern United States, you can use a smaller, less powerful unit. Moderate climates still benefit from a heat pump, but you&#;ll require a larger, more powerful unit for spring. If you live in a cold climate, we recommend seeking out other heating methods for your home, such as an electric furnace. 

Permits

Most local municipalities require a permit for heat pump installation. You&#;ll need a building permit at minimum, but additional permits may be required if you have to excavate land or go near established pipelines for installation. Permit requirements and fees vary by state and city, but you&#;ll most likely pay somewhere around $100 for the building permit. 

We recommend checking with your local government or asking your HVAC contractor about the required permits before beginning any work.

Heat Pump Removal 

If you already own a heat pump and are installing a new one, you&#;ll have to pay to remove the old unit. This can cost $200&#;$400 per hour. These additional fees should be included in your original estimate, so we advise you to ask the HVAC technician what portion of the quote goes toward removal. This will help you more accurately compare the quotes you receive for heat pump installation.

What Are Common Types of Heat Pumps?

Now that you know how heat pumps work, you can review the various types available. Each has different benefits and drawbacks and comes at a different price point. We go over these in detail below, but a professional can best help you assess which type is right for your home. Enter your ZIP code below to connect with local HVAC contractors and schedule a consultation.

Air-Source

Air-source heat pumps cost an average of $3,500&#;$7,500 for both the unit and professional installation. These heat pumps trap air from outside in refrigerants and compress it, sending hot air through the centralized ducts in your home and warming each room. Even in cold climates, the heat pump can extract energy from the air outside your home and turn it into useful heat for the interior. Air-source heat pumps can last up to 20 years without much maintenance and can save homeowners substantial money on energy bills.

Air-source heat pumps are generally affordable compared to other systems, so long as ductwork is already installed in your house. Switching from typical resistance heating to an air-source heat pump can generate long-term savings.

Geothermal

Geothermal heat pumps cost an average of $13,000&#;$36,000 for both the unit and installation. Though extremely efficient in the long term, they have high startup costs because of the extensive work required for installation.

Geothermal heat pumps heat and cool buildings by collecting and storing the ground&#;s constant temperature in an underground loop of pipes called a heat exchanger. These temperatures are sent to the indoor unit, which treats the air and sends it out through the ducts of the house. Ground-source heat pumps are ideal for those looking to save money on their yearly energy bills since the system works with minimal energy consumption.

Because the unit uses heat from the ground, the pipes must be laid in dug-out trenches at least 4 feet down. The labor for this installation can be costly and varies depending on how deep the pipes must be installed.

Ductless Mini-Split

Ductless mini-splits are one of the cheapest options, since installation is fairly simple and the cost of labor is lower than other heat pumps. They cost an average of $1,500&#;$5,000.

The ductwork in HVAC systems can account for 30% of energy loss during operation, especially if the ducts are in unconditioned areas such as the attic. Ductless mini-split heat pumps help mitigate that energy loss by using a small indoor unit in each zone connected to the outdoor unit. They&#;re ideal for homes with lower square footage and fewer conditioning zones and can be an efficient option for homes that don&#;t already have ductwork installed.

We recommend ductless mini-splits to anyone looking for a quick, cheap heat pump in their smaller home.

Gas-Fired

The total average for a standard gas-fired heat pump and installation is around $4,500&#;$8,000. Heating and cooling systems powered by gas can be less efficient than other heat pump types since they require access to natural gas, leading to expensive yearly energy costs. However, gas-fired heat pumps can be a great choice for commercial businesses and larger buildings, since the 5-ton systems can support large rooms and buildings with multiple different temperature zones. In fact, they&#;re becoming more common in residential homes that are larger than 4,000 square feet.

What Are Heat Pump Costs by Brand?

Most AC brands offer a range of units at different prices, from cheaper, lower-quality options to expensive, high-quality systems. A typical air-source heat pump costs $3,500&#;$7,500 to install, but a more well-known, high-end brand may charge closer to $7,000&#;$11,000. Make sure to check the brand&#;s warranties before trying to save money with a cheaper option. Shop around and read reviews rather than solely choosing based on price.

Average Heat Pump Cost by Brand 

Below is a breakdown of some popular heat pump brands&#; average costs.

BrandSEER RatingAverage CostFrigidaireUp to 21$500&#;$1,082GoodmanUp to 24.5$1,500&#;$8,000CarrierUp to 26$3,000&#;$15,000RuudUp to 20.5$3,000&#;$6,100RheemUp to 20.5$3,100&#;$6,100LennoxUp to 28$3,100&#;$10,000TraneUp to 22$3,500&#;$15,600AmanaUp to 25$3,600&#;$11,000American StandardUp to 22$3,500&#;$10,900YorkUp to 21$4,000&#;$10,000

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Typical Price Range: $3,500 &#; $7,500

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What Are the Benefits of Installing a Heat Pump?

Though a heat pump costs more than a furnace, it provides many benefits. We&#;ve listed the most significant perks below. 

Tax Credits

You can reduce the cost of your heat pump installation with tax credits. Energy Star supplies a 30% (or $2,000 maximum) tax credit for air-source heat pumps. We suggest researching all of Energy Star&#;s tax credits to learn other ways to save.

Energy Efficiency

Heat pumps are also more efficient than other heating and cooling systems. This results in more savings on your energy bills long-term.

Space Saving 

Because a heat pump handles all aspects of a traditional HVAC system, you can save space by installing one. Many homeowners are able to avoid having a furnace take up space in their basement, opening the possibility of a finished basement.

Return on Investment

The Department of Energy reports that homeowners can save $1,000 per year by switching to an air-source heat pump. At the very least, you&#;ll receive a 10% return on investment (ROI) each year. This means that heat pumps can eventually pay for themselves, depending on your typical energy consumption.

Safety 

Heat pumps are considered a safer HVAC system because they don&#;t rely on combustion. Oil and gas furnaces pose a greater risk due to lack of maintenance, and heat pumps reduce your overall carbon emissions compared to other heating options. Additionally, they require less maintenance than combustion heating systems, meaning there&#;s less room for error when working on them and fewer ongoing air conditioner repair costs.

How Does a Heat Pump Work?

A heat pump system is an efficient way to heat and cool your home using heat from outside sources. It&#;s installed outside your home like a central air conditioning (AC) unit. Each type of heat pump uses a different source, such as gas, water, outside air, or cool temperatures absorbed from the ground. They all use a reversing valve to produce cool and warm air, keeping your home at a comfortable temperature in every season.

Heat pumps use less external energy than typical forced-air or electric resistance systems. We recommend heat pumps for homeowners whose home&#;s average temperature doesn&#;t typically drop below freezing. However, homeowners can combine their heat pump with a furnace in colder regions for more energy-efficient heating. This is called a dual-fuel system.

What Are Common Heat Pump Repairs?

Contacting a professional to complete repairs is typically necessary if your heat pump experiences an issue. If you have a home warranty, you can check your contract to see if HVAC breakdowns and duct systems are covered. Then, you&#;ll only need to pay your service fee to have a technician out for the repair.

You can also reach out to local HVAC contractors, such as Michael & Son for a quick consultation to determine the best solution. The company is available in Virginia, Maryland, North Carolina, and Washington, D.C.

Here are the most common heat pump repairs and their average costs:

Repair Costs

RepairAverage CostElectrical work$100&#;$600Clear blockage$80&#;$150Leaks$90&#;$610Defroster repairs$100&#;$650Thermostat$100&#;$250Ductwork$750&#;$3,300Compressor and condenser$1,500&#;$4,500

What Are the Differences Between a Heat Pump vs. Furnace?

Though both heat pumps and furnaces heat your home, they&#;re different types of heating systems. Many different furnaces exist, including electric, natural gas, propane, and oil. Furnaces use one of these power sources to ignite burners inside the furnace cabinet. That burner then heats up a heat exchanger, warming the air distributed through your home. Any home can use a furnace, but your home&#;s layout, size, and local climate determine which type of furnace is best. 

Furnace installation costs an average of $1,700&#;$9,700, making it less than heat pump installation costs. We recommend reading our guide to the best furnace brands if a furnace matches what you&#;re looking for. 

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Heat pumps are all-in-one HVAC units, not only heating your home but also acting as an air conditioner, dehumidifier, and air filter. This makes heat pump installation more expensive than a traditional furnace, starting at $3,500. However, you&#;re paying for the total cost of HVAC installation rather than only one part of the system. If you install a furnace, you&#;ll also need to pay to install an AC. We recommend comparing heat pumps and AC units before deciding which type of system fulfills your needs. Read our complete guide to HVAC for more information.

Our Conclusion

Heat pumps are expensive up-front, but their performance and long-term energy savings make them a worthwhile investment. As long as you practice proper heating and cooling maintenance, a heat pump can keep your home comfortable for up to 15 years.

We recommend hiring a professional HVAC contractor for installation, as it&#;s a complicated and potentially dangerous process to attempt yourself. Use our tool below to connect with reputable HVAC technicians in your area.

FAQ About The Cost of Heat Pumps

Do You Save Money With a Heat Pump?

Heat pumps can save homeowners money on energy costs since they use a sustainable process of extracting usable heat from ambient air or other outside sources for both heating and cooling. When compared with conventional HVAC systems, the long-term savings are considerable. In fact, according to the Northeast Energy Efficiency Partnership, savings average around $600 compared with electric resistance heating systems.

What&#;s an alternative to a heat pump?

If you live in an area with especially cold winters where temperatures consistently fall considerably below freezing (32 degrees Fahrenheit), you may look for alternatives to heat pumps, such as gas furnace units or electric resistance heaters. However, geothermal heat pumps may still be a good solution since the temperatures in the ground remain at useful levels during extreme cold.

What types of heat pumps are most efficient?

Not only are geothermal heat pumps the most eco-friendly option on the market, they also offer the most economical and efficient option when it comes to utility bills. However, the up-front cost of these can be extremely high due to the complicated and time-consuming installation. Air-source heat pumps are the most common and can still save you hundreds of dollars each year in efficiency and reduced energy usage compared with traditional HVAC systems.

What is the cheapest heat pump?

Based on our research, ductless mini-split heat pumps are the cheapest option for both unit cost and installation. Since they don&#;t require ductwork, they&#;re easy to install with a quick setup. However, since the airflow is not centralized, you may be required to set up multiple units in different zones of your home to be sure each room remains at a comfortable temperature.

These would be an ideal purchase for those with smaller homes. If you have a larger house with multiple rooms, you may need to consider central air units that utilize the existing ductwork.

Is installing a heat pump worth it?

Yes, installing a heat pump is worth it because you&#;ll get more energy savings throughout the year, have low maintenance costs, and can reduce your total investment with tax credits. Additionally, heat pumps are safer, with no risks of a gas leak.

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The primary cost factors when installing a heat pump depend on the type of pump you choose and the size of your home. Here&#;s how that breaks down.

By Type

The type of heat pump you choose will likely be the biggest cost factor, as this impacts the installation process. Here are the five main types to choose from, along with price ranges, pros and cons.

• Air-source: This is the most common type of heat pump out there. It features a simple design that, as the name suggests, pulls heat from the air. This is an affordable option for most people, but not the best pick for colder-than-average climates. Air-source heat pumps cost an average of $3,000 to $11,000, though the higher number assumes a high-efficiency unit.
• Geothermal: Ground-source, or geothermal, heat pumps pull heat from the soil beneath our feet. This setup includes underground piping, which requires professional excavation. In other words, geothermal pumps cost more than air-source pumps, with an average installation cost of $5,000 to $20,000. However, they are better at dealing with cold temperatures than air-source pumps.
• Solar: This type of heat pump is available as a geothermal or air-source model, as the solar element merely refers to the power source. The primary benefit here is that you won&#;t have to pay that monthly energy bill. The downside? You need solar panels, and installing solar panels can be prohibitively expensive. The actual units aren&#;t that pricey, but the total installation cost ranges from $3,500 to $19,500. If you need panels installed, that price rises by an average of $16,000.
• Hybrid: Otherwise known as a dual-fuel heat pump, hybrid units are exactly what they sound like: a combination of a traditional furnace with a heat pump. This option is the best choice for frigid climates, as the furnace kicks in during the winter. These units benefit from adequate insulation, which could add to the cost. The total installation price here is $3,000 to $13,700, depending on the efficiency rating of the heat pump portion.
• Ductless mini-split: Looking for the cheapest heat pump option? It&#;s a ductless mini-split. As the name suggests, this type of heat pump doesn&#;t even require ducts, further lessening the overall cost. Instead, mini-splits use refrigerant lines that run throughout the interior. This option is absolutely perfect for a small home, but things can get expensive with larger homes, as each zone will require its own unit. On the plus side, adding multiple units eliminates cold spots. Installing a ductless mini-split heat pump costs $1,500 to $8,000, depending on the number of units required.

HEAT PUMP TYPE UNIT COST INSTALLATION COST TOTAL COST

Air-source

$2,000 &#; $7,000

$1,000 &#; $4,000

$3,000 &#; $11,000

Geothermal

$2,800 &#; $9,000

$2,200 &#; $11,000

$5,000 &#; $20,000

Solar

$2,200 &#; $9,500

$1,300 &#; $11,000

$3,500 &#; $19,500

Hybrid

$2,000 &#; $8,200

$1,000 &#; $5,500

$3,000 &#; $13,700

Ductless mini-split

$1,000 &#; $4,000

$500 &#; $5,000

$1,500 &#; $8,000

Note: Labor costs in the table above assume your home already has the necessary ductwork, if applicable. If you don&#;t, this extra work will add to this cost.

By Size

The overall size of your home, along with the local climate, determines the size of the heat pump you need to adequately regulate the temperature throughout the year. The size of a heat pump is illustrated in tons, with models available in 2 to 5 tons. The costs increase as you start looking into larger-capacity heat pumps. Small units range from $3,800 to $6,600, while larger-capacity units cost up to $9,000 or more, depending on the efficiency rating.

HOUSE SIZE (IN SQUARE FEET) SIZE (IN TONS) SIZE (IN BTUs)

500

1

12,000

1,000

2

24,000

1,500

3

36,000

2,000

4

48,000

2,500

5

60,000

3,000

6

72,000

By Top Brands

Many reputable manufacturers specialize in heat pumps. Here are some of the big players in the industry, along with the average price range to purchase a unit. These ranges take into account both standard and high-efficiency heat pumps. The price range also fluctuates according to the type of heat pump the company specializes in.

BRAND HEAT PUMP UNIT COST

Amana

$1,800 &#; $2,800

American Standard

$1,900 &#; $3,200

Bosch

$1,200 &#; $8,200

Carrier

$2,300 &#; $4,000

Coleman

$1,300 &#; $3,500

Goodman

$1,500 &#; $4,100

Lennox

$2,500 &#; $4,700

Panasonic

$1,300 &#; $3,000

Rheem/Ruud

$1,600 &#; $3,400

By Location

Like most home renovation projects, your location can determine the price range. This is especially true of heat pumps, as certain types just don&#;t do well in cold weather. Air-source pumps are one of the cheapest options but aren&#;t the best fit for those living in colder regions.

With this in mind, it&#;ll be pricier to install a heat pump in the colder parts of the country when compared to areas with moderate or warm climates. Colder regions also demand larger heat pumps, further impacting the price.

CITY HEAT PUMP UNIT COST

Atlanta

$1,000 &#; $3,500

Chicago

$4,000 &#; $5,500

Denver

$2,600 &#; $9,800

Houston

$1,500 &#; $6,500

Los Angeles

$1,000 &#; $6,500

Miami

$1,000 &#; $3,700

New York

$3,200 &#; $6,900

St. Louis

$3,800 &#; $8,200

Note: This table looks at unit costs. Keep in mind that labor rates (not factored in) can also vary depending on your city&#;s cost of living

Labor

Installing a heat pump is work best left to a qualified HVAC professional, unless you have a boatload of experience in various home systems. HVAC pros charge anywhere from $75 to $150 per hour and will likely account for 30 to 40% percent of your total budget.

Labor costs also truly depend on the type of heat pump you purchased. For a standard installation of a ductless mini-split heat pump, you could pay as little as $500 for labor, as this job is straightforward and quick.

However, other types of heat pumps often require more contractors to handle specific tasks. For instance, geothermal units must be buried at least 4 feet into the ground, often requiring an excavation expert. Solar-powered pumps will require the professional installation of panels.

Finally, most heat pump types deliver cooled and warmed air through ducts. If you lack the proper ductwork, that&#;ll also drastically increase labor costs. With all of this in mind, the cost range for labor here is vast. Some jobs cost as little as $500, while others extend all the way to $20,000.

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