How Much Does a Heat Pump Cost?

A heat pump costs about $11,500–$16,000 installed for a typical 3-ton system in a 1,500–1,800 sq ft home, at national-average prices in 2026. A high-efficiency variable-speed inverter model — including cold-climate-rated units — runs $17,000–$23,000. Both ranges include the outdoor condenser, indoor coil or air handler, refrigerant lines, electrical work, permits, disposal of the old equipment, and a 10% contingency.

This guide covers heat pump cost by home size and efficiency rating, the three main types (central ducted, ductless mini-split, and geothermal), the factors that push the price up or down, how heat pumps perform in cold weather, and the backup-heat detail quotes often leave out. It is written for homeowners replacing an aging air conditioner, furnace, or both at once. For a number based on your own home size and efficiency level, use the HVAC replacement calculator.

Cost at a glance

A heat pump is an air conditioner that runs in reverse in winter, so its installation price tracks the high-efficiency tiers of our HVAC benchmark. Most residential heat pumps are sold in the two-stage or variable-speed tiers, not the entry-level single-stage one.

Ranges are national averages and include installation, removal of the old unit, permits, sales tax, and a 10% contingency. Labor rates in your metro can move them 10–40% either way; see how we calculate costs.

What's included in the price

A heat pump quote covers more than the two big boxes. A complete installation typically includes:

• The outdoor heat pump condenser
• An indoor evaporator coil matched to the unit, or a full air handler (with electric backup heat strips where the design calls for them)
• A new refrigerant line set, flushed, pressure-tested, and evacuated
• A new electrical disconnect and wiring whip, plus a dedicated circuit sized for the unit
• A composite equipment pad and condensate safety switch
• A smart thermostat, system commissioning, and charge/airflow verification
• The mechanical permit and any required inspection or HERS rating

If the old system used a different refrigerant than the new one, the line set must be replaced, not reused — confirm that in writing.

What drives the cost up or down

Capacity (tonnage). A 4-ton unit costs more than a 2.5-ton one, but bigger is not better: an oversized heat pump short-cycles, dehumidifies poorly, and wears out faster. The right size comes from a Manual J load calculation, which the contractor should do before quoting.

Efficiency ratings. Heat pumps carry two ratings: SEER2 for cooling and HSPF2 for heating. A single-stage 14 SEER2 unit is the cheapest to install; a two-stage 16–17 SEER2 unit typically adds a few thousand dollars; a variable-speed inverter unit (18–22+ SEER2) adds more still, but holds its efficiency in cold weather and runs far quieter.

Cold-climate performance. Units engineered to keep their heating capacity below freezing cost more than units sized mainly for cooling. If winters where you live regularly drop into the 20s, paying for a cold-climate-rated model is usually cheaper than paying for years of backup heat.

Ductwork condition. Leaky or undersized ducts make a new heat pump work harder and can force you to buy a larger unit. Duct sealing typically runs $800–$2,200; new ductwork adds several thousand. This is the most common reason a "cheap" quote balloons.

Electrical service. A heat pump needs a dedicated 30–60 amp circuit. Homes still on 100-amp service sometimes need a panel upgrade, which can add $2,000–$4,500 or more and its own permit.

Backup heat. Electric resistance backup strips are cheap to install but the most expensive heat you can buy to run. A dual-fuel setup — heat pump plus a small gas furnace that only fires on the coldest days — costs more up front but protects your winter bills. Get it priced both ways.

Heat pump types: ducted, ductless, and geothermal

Central ducted air-source heat pump. The most common choice: one outdoor unit, one indoor coil or air handler, connected to your existing ducts. It replaces the air conditioner and, in mild climates, the furnace too. Costs track the tables above.

Ductless mini-split heat pump. Wall- or ceiling-mounted indoor heads, each fed by refrigerant lines from an outdoor unit — no ducts needed. A single zone (one room) typically runs $3,000–$6,000 installed; a whole-house multi-zone system usually runs $10,000–$18,000. Ideal for homes without ductwork, additions, and rooms the main system can't keep comfortable. Expect visible indoor units on the wall and one refrigerant line set routed to each head.

Geothermal (ground-source) heat pump. Loops buried in the yard or drilled wells supply near-constant ground temperatures, giving the lowest operating costs of any option. Installation is the highest — typically $18,000–$35,000 or more, driven by excavation or drilling. Worth pricing only if you plan to stay in the home a long time and have the yard or drilling access for the loops.

Cold weather performance

Standard air-source heat pumps lose heating capacity as the temperature drops, usually starting around 35–40°F. Cold-climate-rated models hold most of their capacity down to about 5°F and keep operating to -10°F or lower — look for those ratings on the spec sheet if you live where winters are real.

Every heat pump has a "balance point": the outdoor temperature below which it can't carry the home's full heating load. Below that point, electric resistance backup heat takes over, and it costs two to three times more per unit of heat. That is why the backup-heat section of the quote matters as much as the headline number.

Where winter design temperatures regularly fall into the teens, many installers recommend dual-fuel: the heat pump does the work for most of the season, and a gas furnace handles only the coldest days. Sizing per a Manual J calculation matters more in cold climates than anywhere else — an oversized unit costs you twice, once at purchase and again on every winter bill.

What quotes often leave out

The price per ton rarely tells the whole story. Before you compare two heat pump quotes, check that each one covers:

• Backup heat strips. Included or extra? Enabled or left off? At what temperature do they switch on?
• Refrigerant type. Newer low-GWP refrigerants (R-32 or R-454B) cost more than R-410A but will be easier to service for years.
• A Manual J load calculation. A contractor who skips it is guessing at the size of your system.
• The AHRI matched-system certificate. Proves the indoor and outdoor units are rated to work together; without it, the efficiency ratings on the brochure don't apply.
• SEER2 and HSPF2 ratings in writing, not just the model name.
• Duct sealing and return-air sizing. Undersized return air is a classic cause of noisy, inefficient heat pumps.
• 10-year parts and labor warranty terms — parts coverage without labor is common and worth much less.
• Line set replacement, the equipment pad, and condensate drain routing.

Paste your quote into the Quote Checker before you sign to see what is missing.

Permits and timeline

Most cities require a mechanical permit for a heat pump installation, and an electrical permit is common when a new circuit is run. Permit fees and inspection requirements vary by city, so check with the local building department before work starts.

A like-for-like swap of an existing unit usually takes 1–2 days. Add a day or two for ductwork repairs or electrical upgrades. Geothermal installations take a week or more because of the drilling or excavation. Refrigerant handling and high-voltage wiring must be done by licensed, insured professionals — heat pumps are not a DIY install. In homes built before 1978, work that disturbs old ductwork or paint falls under EPA lead-safe rules that contractors must follow.

Weighing a heat pump against the conventional route? Compare how much a new HVAC system costs, AC replacement cost, and furnace replacement cost, then run your own numbers in the HVAC replacement calculator before you sign.