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Reviewed by Marcus AldridgeSenior Editorial Reviewer — Plumbing, HVAC & Wet Trades
Comparison

Heat Pump vs Furnace: Should You Replace or Repair?

Repair the furnace or switch to a heat pump? Compare repair cost, system age, energy savings, and climate to decide.

Furnace repair runs $150–$650 for most fixes and makes sense when the unit is under 12–15 years old and the repair is below 30–50% of a replacement. Switching to a heat pump ($5,000–$18,000 installed) is the bigger move: it replaces both heating and cooling, runs on electricity, cuts energy bills 30–50% in moderate climates, and qualifies for federal and utility rebates. If your furnace is old, inefficient, or facing a major repair like a cracked heat exchanger, a heat pump often pays back the difference within 5–10 years. For a young furnace with a minor fault, repair is the economical call.

Heat Pump Installation vs Furnace Repair

FeatureHeat Pump InstallationFurnace Repair
Best forChoose a heat pump if your furnace is over 12–15 years old, faces a major repair, or you want to cut energy bills and electrify — one system then covers heating and cooling.Choose furnace repair if the unit is under ~12 years old, the fix is minor (igniter, sensor, blower), and the repair costs well under half of a replacement.
When to call

Call a heat pump installation when…

Choose a heat pump if your furnace is over 12–15 years old, faces a major repair, or you want to cut energy bills and electrify — one system then covers heating and cooling.

When to call

Call a furnace repair when…

Choose furnace repair if the unit is under ~12 years old, the fix is minor (igniter, sensor, blower), and the repair costs well under half of a replacement.

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