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Heat pump ROI

Replacing an old furnace and AC with a ducted heat pump costs around $18,000 and recoups roughly two-thirds, plus energy savings.

Your estimate

Cost
$18,000
Adds at resale
$12,240
Recouped
68%
0%Partial payback200%
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National planning figure: $18,000 cost, 68% recouped. Ranked #13 of 27 projects by ROI.

A ducted air-source heat pump replaces both furnace and air conditioner. Newer cold-climate models work well into sub-zero temperatures, and federal and utility incentives can cut the cost substantially.

Why it scores where it does

  • Buyers ask about HVAC age; a new system removes an objection.
  • Heating and cooling savings depend on fuel prices.
  • Incentives vary widely by state and utility.

Get the most from it

  • Get a Manual J load calculation rather than sizing by rule of thumb.
  • Check the DSIRE database for local incentives.
  • Keep install and warranty paperwork for the buyer.

Heat pump HVAC conversion ROI by region

RegionCostValue added% recoupedLevel
Pacific$21,600$15,66773%
Mountain$18,000$12,97472%
South Atlantic$17,100$11,75069%
New England$20,160$13,46467%
West South Central$16,560$10,64964%
East South Central$16,200$10,28263%
Middle Atlantic$19,800$12,48563%
West North Central$17,640$10,77161%
East North Central$17,820$10,52659%

Frequently asked questions

Does a new HVAC system increase home value?

It adds some value and, more importantly, prevents buyers from discounting their offer for an aging system.

Do heat pumps work in cold climates?

Cold-climate heat pumps listed by NEEP are designed to heat efficiently well below freezing.

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