Your rates, transparent math
Gas furnace or heat pump — what costs less to run?
Compare the illustrative annual heating cost of a gas furnace, a standard heat pump, and a cold-climate heat pump — with your own utility rates, and every assumption shown. Education, not a quote.
In brief
A heating cost comparison calculator from Best Owner Direct HVAC & Electrical — compare the illustrative annual operating cost of a gas furnace, a standard heat pump, and a cold-climate heat pump for a the Tualatin Valley & Portland metro home, using your own utility rates. The math is shown transparently and the numbers are education, not quotes; we confirm real figures — including current Energy Trust of Oregon and federal incentives — at estimate time. Call (503) 442-5964.
How this works
Same heat. Different equipment. Your rates.
Every home needs a certain amount of heat per winter. The only question this tool answers is what that heat costs to buy through different equipment — at the electricity and gas prices you actually pay. Open “how we calculate” to see every number we assume.
Heating cost comparison
Illustrative — not a quote
Older gas or electric-resistance heat adds a “today” baseline bar so you can see the gap.
Illustrative annual heating cost
Same heat delivered to a 1,200 – 1,800 sq ft home, priced through different equipment at your rates.
Your older gas furnace (today)baseline
~$870/yr
Assumes ~80% AFUE
High-efficiency gas furnace
~$735/yr
95% AFUE condensing furnace
Standard heat pump
~$895/yr
Mid-tier ducted heat pump
Cold-climate heat pump
~$735/yr
Variable-speed, holds capacity in cold snaps
Before you quote these numbers at dinner
- Your insulation, air sealing, and duct condition move real usage more than any line in this table.
- Seasonal efficiency varies with the specific equipment tier and how it's installed — commissioning matters.
- Rates change: check your actual bill for your ¢/kWh and $/therm, including delivery charges.
- Qualifying heat pumps often earn Energy Trust of Oregon incentives and utility rebates — the federal Section 25C credit ended for installations completed after December 31, 2025. Amounts and rules change, so we verify current figures at quote time rather than promise numbers here.
The jargon, translated
AFUE, COP, HSPF — in plain English.
AFUE (gas furnaces)
Annual Fuel Utilization Efficiency — the share of the gas you buy that becomes heat in the house. A 95% AFUE furnace turns 95¢ of every gas dollar into warmth; an older 80% unit sends 20¢ up the flue.
COP / HSPF (heat pumps)
A heat pump doesn't make heat, it moves it — so it can deliver more heat energy than the electricity it uses. A seasonal COP of 3 means three units of heat per unit of electricity. HSPF is the ratings-label version of the same idea: higher is better.
Why the climate matters
Heat pump efficiency drops as it gets colder outside. The Portland metro's mild, wet winters keep heat pumps in their happy zone most of the season — which is why the same equipment pencils out differently here than in Bend or Spokane.
Straight answers
The questions this tool can’t answer alone.
Operating cost is one line of the decision. Comfort, cooling, incentives, and your actual house make up the rest — that's the quote-time conversation, in writing.
Ask us · (503) 442-5964Are these numbers a quote or a bill prediction?
Neither — they're illustrative education. The comparison shows how the same heating load costs different amounts through different equipment at the rates you enter. Your real bills depend on your home's insulation, ducts, thermostat habits, and the specific equipment installed.
What electricity and gas rates should I enter?
Pull them from a recent bill: divide the total electric charge by the kWh used (that captures delivery charges too), and the total gas charge by the therms used. The defaults are Oregon-typical ballparks, not your rates.
Is a heat pump less expensive to run than a gas furnace in Oregon?
Often close, and it depends on your rates. At typical Oregon prices a cold-climate heat pump and a high-efficiency gas furnace land in the same neighborhood, while a heat pump wins clearly against electric resistance heat. The heat pump also adds cooling and typically earns incentives — which is why the full answer is a quote-time conversation, not a rule of thumb.
What incentives exist for heat pumps in Oregon?
Qualifying heat pumps frequently earn Energy Trust of Oregon incentives plus utility rebates; the federal Section 25C credit ended for installations completed after December 31, 2025. Utility programs come and go, and eligibility rules change often enough that we confirm current figures for your specific equipment at quote time instead of publishing numbers that could go stale.
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Want the numbers for your actual house?
A no-obligation in-home estimate pins down sizing, efficiency tier, and current incentives — anywhere in the Tualatin Valley & Portland metro.
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