How Much Does a Heat Pump Cost in 2025?
Heat pumps cost $6,084 on average, but the price depends on unit size, type, labor rates, and other factors.
Installing a heat pump often costs between $4,247 and $7,933, with an average cost of $6,084.
Factors like system size, type, efficiency rating, and location will affect the total price.
Labor is one of the most significant heat pump installation costs, with HVAC contractors charging an average of $75 to $125 per hour.
Hiring a licensed HVAC pro ensures the system will run at peak efficiency.
This article was created using automation technology and thoroughly fact-checked and edited by HomeAdvisor Editor Ryan Noonan.
Installing a heat pump is one of the most efficient ways to heat and cool your home year-round. Expect to spend about $6,084 on average for heat pump costs, with most projects landing between $4,247 and $7,933. Your final price hinges on the unit’s size, efficiency rating, your location, and other factors. Hiring a licensed HVAC professional helps the system perform at its peak and protects your long-term energy savings.
Heat Pump Cost by Size and Capacity
Most homeowners choose a 3-ton-capacity heat pump, which costs between $3,900 and $6,200 (including labor). The higher your heat pump’s capacity, the higher your cost will be. If you install a pump that’s too small for your needs, you’ll quickly lose that initial savings with a system that runs constantly.
The table below breaks down heat pump costs based on capacity, accounting for a few variables such as brand and regional pricing differences:
| Heat Pump Capacity in Tons | Average Cost Range |
|---|---|
| 2 | $3,500–$5,500 |
| 2.5 | $3,700–$5,800 |
| 3 | $3,900–$6,200 |
| 3.5 | $3,900–$6,400 |
| 4 | $4,000–$7,300 |
| 5 | $4,500–$8,800 |
Also consider these tips for heat pump sizing and purchasing:
Your heat pump should be sized according to the maximum demand; an undersized pump will run nonstop and erase any savings.
Look for a lower decibel (dB) rating if you want a quieter system.
Heat pumps work better in temperate climates without extreme temperature fluctuations.
Heat Pump Costs by Type
The type of heat pump system you choose could mean the difference between thousands of dollars. Geothermal and solar heat pumps are more expensive than air-source systems, for example.
| Heat Pump Type | Total Installation Cost (Without Ductwork) |
|---|---|
| Air source | $4,500–$8,000 |
| Geothermal | $6,000–$20,000 |
| Mini-split | $1,300–$8,000 |
| Solar | $18,000–$39,000 |
| Hybrid | $2,500–$10,000 |
Air Source
With air source pumps, an exterior coil extracts warmth from the outdoor air and moves it into the house, releasing it through the air exchanger or individual wall units. Air source heat pumps cost $4,500 to $8,000 for complete installation. High-end brands with 5-ton capacities can exceed $10,000.
Geothermal Heat Pumps
Geothermal heat pumps require in-ground or water-source installations, such as a pond or small lake. They’re also known as ground-source pumps because they live underground, protected from the elements, and rely on the earth's stable underground temperatures.
Installing a geothermal heat pump costs anywhere from $6,000 to $20,000, with some models exceeding $30,000. They may initially be more expensive, but they are less costly to maintain than other types. They’ll also last 50 years or longer.
Ductless Mini-Split
Ductless mini-splits cost anywhere from $1,300 to $8,000, depending on the size and the number of zones required. They use multiple refrigerant lines, each running to a specific room or zone in the home. Individual units in each zone either warm or cool the room as needed.
Solar Heat Pump
Solar heat pumps cost anywhere from $18,000 to $39,000. These systems come in two setups. One simply uses solar power to run the compressor, while the other warms an intermediate fluid, much like a solar water heater, to assist the pump. Installing solar panels makes up most of the price.
Dual-Fuel Hybrid Pump Unit With Furnace
A dual-fuel hybrid heat pump combines a gas furnace and a heat pump, which leverages the best of both systems. The gas furnace inside the house kicks in when the heat pump reaches its balance point. This type of system is best for colder climates that regularly drop below 32°F. Dual-fuel hybrid systems cost $2,500 to $10,000 or more.
Labor Costs for Heat Pump Installation Pros
Labor makes up a significant part of the total price, with most local heat pump installers charging between $75 and $125 per hour. The amount of labor required depends on the system you choose.
Geothermal units demand extensive trenching or drilling, so installation hours (and costs) climb quickly. Solar heat pumps add panel placement and wiring to the workload, whereas basic air-source models are easier to install and cost less to set up.
Heat Pump Cost by Location
Where you live plays a major role in heat pump installation costs. Colder regions of the U.S. need larger heat pumps to withstand winters, leading to higher prices. Some areas also have soil conditions or altitudes that make excavation for a geothermal heat pump more challenging. The table below breaks down average heat pump costs based on location:
| City | Average Cost Range |
|---|---|
| Miami, FL | $2,200–$3,700 |
| Portland, ME | $2,300–$5,500 |
| Denver, CO | $2,800–$10,000 |
| Houston, TX | $3,800–$7,100 |
| Minneapolis, MN | $3,200–$5,400 |
| New York, NY | $3,300–$7,300 |
| Atlanta, GA | $3,000–$5,000 |
| Chicago, IL | $4,500–$5,500 |
| St. Louis, MO | $4,200–$8,000 |
Additional Heat Pump Cost Factors
The following variables can also affect your heat pump cost.
Home Size
Home size determines the amount of tonnage you’ll need. The larger the home, the higher the price. Larger houses will require higher-capacity pumps to warm and cool them properly.
Energy Efficiency Rating
Seasonal Energy Efficiency Ratio (SEER) measures the amount of cooling capacity divided by the amount of energy used. Higher SEER ratings equate to greater energy efficiency.
High-efficiency heat pumps cost more up front but can shave a sizable chunk off future utility bills. Here’s how SEER ratings might affect heat pump costs:
| SEER Rating | Average Cost Range |
|---|---|
| 14 | $1,600–$4,900 |
| 15 | $1,800–$5,900 |
| 16 | $2,400–$6,200 |
| 18 | $2,900–$6,700 |
| 20 | $3,600–$9,500 |
Permits
Permits and fees vary depending on your local regulations. The cost of a building permit ranges from $50 to $300. You might also encounter dumping fees and other local ordinances.
Installing Ducts
If your home doesn’t already have a duct system, you’ll also need to factor ductwork installation into your budget. The average cost to install ductwork is between $3,000 to $7,500 for 300 linear feet. Installation costs less in an unfinished basement, attic, or new construction.
Heat Pump Replacement vs. Repair
Deciding whether to repair or replace your heat pump? You’ll want to replace the outdoor unit when the repair costs meet the 5,000-dollar rule: multiply the age of the unit by the cost of the repair, and replace the unit if the amount is over $5,000.
You might also consider replacing your heat pump in the following situations:
Your heat pump poses a safety threat
It keeps breaking down or heats your home unevenly
It’s older than 10 years
The repair will be very costly
On average, replacing a heat pump costs between $4,247 and $7,933, or $6,084 on average. That said, costs can run upwards of $12,000 depending on your system and location. This assumes you already have a working air handler and ducts.
Benefits of a Heat Pump
Thanks to rising electricity and gas prices, a heat pump is an appealing way to cut monthly bills and shrink your carbon footprint. Here are some benefits of installing a heat pump:
Tax credits
Up to 50% energy savings
Shrinks your carbon footprint
Works for heating and cooling
Easy to maintain
Safer than gas furnaces
Heat Pump Tax Credits and Rebates
According to Energy Star® , installing a heat pump makes you eligible for the Air Source Heat Pumps Tax Credit. With this credit, you can get back up to 30% of your total project cost with a maximum credit of $2,000.
Energy Star also highlights another great incentive: the Geothermal Heat Pump Tax Credit. When you install a geothermal heat pump on your property, you can expect to get a percentage of the project costs back, depending on when you installed the heat pump. Here’s an estimate of the percentage you might get back:
| Placed After | Placed Before | Percentage Back |
|---|---|---|
| Dec. 2016 | Jan. 2020 | 30% |
| Dec. 2019 | Jan. 2022 | 26% |
| Dec. 2021 | Jan. 2033 | 30% |
| Dec. 2032 | Jan. 2034 | 26% |
| Dec. 2033 | Jan. 2035 | 22% |
Does Installing a Heat Pump Increase Home Value?
Installing a heat pump can increase your home value by up to 3%, depending on your location and current market conditions. Heat pumps offer enhanced home comfort and improved energy efficiency, which attracts potential buyers.
With a new heating and cooling system installed, buyers won’t have to worry about paying to replace or repair the HVAC system in the near future. Many areas also offer ongoing rebates and incentives that benefit future buyers.
Budgeting for Heat Pump Installation
Heat pump installation costs can add up. To keep prices down, consider the following tips:
Gather at least three quotes from local heat pump installation professionals to find the best value.
Make sure the unit is sized for your home so it won’t struggle—or break down—later.
Book the install in the off-season when labor rates tend to dip.
Look for the model that meets your heating and cooling needs without paying for extras you won’t use.
Schedule annual tune-ups to catch small issues before they become expensive repairs.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Frequently Asked Questions
Heat pumps don’t create heat—they move it. A refrigerant cycles through two coils, picking up warmth from outside air in winter and releasing it indoors. In summer, the process reverses, pulling heat out of your house and sending it outside. Because the system simply transfers energy rather than generating it, you get efficient, year-round comfort without burning fuel.
With proper installation and regular upkeep, a quality heat pump typically lasts 12 to 20 years. Swap or clean filters as directed, book an annual tune-up, and tackle small repairs quickly to keep the system running smoothly. Skipping maintenance can shave years off the life span and undercut the energy savings you expect.
Heat pumps shine in areas where winter temps stay above about 40°F. Below that mark, efficiency drops, and once readings dip under 25°F you’ll want a backup heat source. Choose a model with a high Heating Seasonal Performance Factor (HSPF) and budget for supplemental heat if your region sees deep freezes. That combo keeps comfort levels high without driving up utility bills.
The biggest drawbacks are the up-front price tag and lower efficiency in extreme cold. If winter temps in your area drop below 10°F, the outdoor unit can freeze, and you may need electric upgrades or duct tweaks to keep things running. Factor in these extras before you buy so the long-term savings aren’t wiped out by surprise costs.
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