Methodology

How we calculate climate-adjusted HVAC costs and heat pump vs furnace comparisons.

Data Sources

Climate Data

Heating and cooling degree days are sourced from Open-Meteo climate reanalysis models and NOAA historical normals. HDD and CDD are calculated using a 65°F (18.3°C) base temperature.

Housing Age Data

Median home construction year by metro is sourced from the Census Bureau's American Community Survey (ACS) 5-year estimates. Older homes may require ductwork modifications or electrical upgrades, which affect HVAC replacement costs.

Cost Benchmarks

Base cost ranges are derived from:

  • RS Means Construction Cost Data (HVAC section)
  • Contractor surveys and industry reports
  • HomeAdvisor / Angi national cost data
  • Energy Star equipment pricing

Climate Adjustment Formula

We adjust national average costs using heating and cooling degree days:

  • Cooling services: Adjusted Cost = Base × (0.9 + CDD/5000 × 0.3)
  • Heating services: Adjusted Cost = Base × (0.9 + HDD/8000 × 0.3)
  • Dual systems (heat pumps): Adjusted Cost = Base × (0.9 + (HDD+CDD)/10000 × 0.2)

This captures the fact that contractors in extreme climates tend to size equipment larger and charge premium rates during peak season.

Heat Pump vs Furnace Calculator

Our calculator estimates:

  • Installation: Heat pump ≈ $3,200/ton. Furnace ≈ $2,500/ton. AC ≈ $2,800/ton.
  • Operating (heat pump): (HDD × 0.8 × sqft / 1000 / COP) × electric rate
  • Operating (furnace): (HDD × 0.8 × sqft / 1000 / AFUE) × gas rate × 100
  • Operating (AC): (CDD × 0.6 × sqft / 1000 / SEER) × electric rate

Assumptions: COP 3.0, AFUE 80%, SEER 16, electric $0.14/kWh, gas $1.20/therm.

Limitations

  • Not a substitute for quotes. Always get 3+ written estimates from licensed contractors.
  • Equipment varies. High-efficiency units (SEER 20+, AFUE 95+) cost significantly more than baseline models.
  • Ductwork unknown. Costs assume functional ducts. Replacing ductwork adds $2,000–$5,000+.
  • Permits and codes. Local permit fees and code requirements vary and are not included.
  • Seasonal pricing. Emergency repairs in peak summer/winter may cost 50–100% more.
Data last updated: July 25, 2026