Furnaces, heat pumps, boilers, mini-splits, and baseboard heat all warm a home differently. Here is how each one actually works, what it costs to install and run, and which climate it fits.
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Every home heating system does the same three things: it creates or moves heat, it distributes that heat through your home, (learn more about what is a home warranty and how does it work? a plain-english guide for 2026) (learn more about best driveway paving contractors of 2026: top 7 compared) (learn more about how to increase your home's value before selling: the complete 2026 guide) (learn more about how to winterize your home: the 2026 checklist, ranked by what it costs you to skip) and it uses a thermostat to decide when to run. The difference between a furnace, a heat pump, a boiler, a ductless mini-split, and electric baseboard comes down to how they make heat and how they move it. Furnaces and heat pumps blow warm air through ducts. Boilers push hot water through pipes to radiators. Mini-splits skip ducts entirely. We compared all five on efficiency, installed cost, climate fit, and repair burden so you can tell which one is in your home — (learn more about hvac repair services in tampa) (learn more about kitchen remodel cost in 2026: what you will actually pay (by scope)) and what to expect from it.
Space heating is roughly 42% of the average American home's energy bill, according to the U.S. Department of Energy. Understanding which system you have is the first step to spending less on it. If yours is about to face its first cold snap of the season, pair this guide with our home winterizing checklist.
We looked at each heating type across four criteria that actually change what a homeowner pays and lives with:
| Criteria | Weight | Why It Matters |
|---|---|---|
| Operating efficiency | High | Determines your monthly bill more than any other factor. |
| Installed cost | High | Replacement is a 10-to-25-year decision made once. |
| Climate fit | High | A system that struggles below freezing is the wrong system in Minnesota. |
| Repair and upkeep | Medium | Some systems have one moving part. Others have a dozen. |
Data sources: U.S. Department of Energy (energy.gov), U.S. Energy Information Administration Residential Energy Consumption Survey, ENERGY STAR equipment specifications, and ACCA Manual J load-calculation guidance. Installed-cost ranges reflect national averages and vary widely by region, home size, and ductwork condition.
Best for: Homes with existing ductwork in cold or mixed climates
Efficiency range: 80%–98.5% AFUE
Typical installed cost: $4,000–$8,000
A gas furnace burns natural gas or propane in a sealed chamber, transfers that heat to air through a metal heat exchanger, and a blower pushes the warm air through ducts to your rooms. Its efficiency is measured in AFUE — the share of fuel converted to usable heat. A 95% AFUE furnace turns $1.00 of gas into 95 cents of heat. About 47% of U.S. homes heat with natural gas, making this the country's default system.
Homeowners in cold climates with ducts already in place and reasonable natural gas rates. It is a poor fit if you have no gas service, since propane costs considerably more per unit of heat, and it is unnecessary in mild southern climates where a heat pump handles the load for less.
Best for: Mild to moderately cold climates, and all-electric homes
Efficiency range: 250%–400% effective (HSPF2 7.5–10+)
Typical installed cost: $6,000–$14,000
A heat pump is an air conditioner that can run backward. In winter it pulls heat out of outdoor air — yes, cold air still holds heat — concentrates it with a compressor, and delivers it indoors. Because it moves existing heat rather than burning fuel, it delivers two to four units of heat for every one unit of electricity. That is why it beats every fuel-burning system on efficiency.
Homeowners replacing both a furnace and an aging air conditioner at once, or anyone in a climate that rarely stays below 20°F. Homes in deep-cold regions with inexpensive natural gas often still pencil out better with a furnace, or with a dual-fuel setup that switches between the two.
Best for: Older homes, radiant floors, and anyone sensitive to blowing air
Efficiency range: 80%–95% AFUE
Typical installed cost: $6,000–$12,000
A boiler heats water — it does not usually boil it — and a circulator pump sends that hot water through pipes to radiators, baseboard convectors, or tubing under the floor. The water gives up its heat to the room and returns to be reheated. Because water carries heat far better than air, hydronic systems deliver steady, quiet warmth with no drafts and no duct losses.
Owners of older homes that already have radiators and pipes, and homeowners building with radiant floors. It is rarely worth installing from scratch in a home that has usable ductwork.
Best for: Additions, converted garages, and homes with no ductwork
Efficiency range: 250%–400% effective
Typical installed cost: $4,000–$10,000 (roughly $3,000–$5,000 per zone)
A mini-split is a heat pump split into two parts: an outdoor compressor and one or more wall-mounted indoor heads, connected by a small refrigerant line through a three-inch hole in the wall. Each head is its own zone with its own thermostat. Skipping ducts eliminates the 20%–30% distribution loss that ducted systems accept as normal.
Homeowners adding conditioned space, finishing an attic or basement, or fixing one stubbornly cold room. Whole-home mini-split conversions make sense in homes with no ducts at all, but the math gets expensive past four or five zones.
Best for: Backup heat, rarely used rooms, and very small spaces
Efficiency range: 100% at the appliance
Typical installed cost: $1,000–$3,000
Electric resistance heating pushes current through a metal element that glows warm, exactly like a toaster. Every watt of electricity becomes a watt of heat, which sounds ideal until you compare it to a heat pump that delivers three watts of heat per watt drawn. Baseboards are inexpensive to install and costly to run — often two to three times a heat pump's operating cost for the same warmth.
Guest rooms, workshops, three-season porches, and backup heat behind a heat pump. As a whole-home system it is only defensible where electricity is unusually inexpensive and winters are short.
| System | How It Makes Heat | Efficiency | Typical Installed Cost | Also Cools? | Best Climate |
|---|---|---|---|---|---|
| Gas furnace | Burns fuel | 80%–98.5% AFUE | $4,000–$8,000 | No | Cold to mixed |
| Heat pump | Moves outdoor heat | 250%–400% effective | $6,000–$14,000 | Yes | Mild to moderately cold |
| Boiler | Burns fuel, heats water | 80%–95% AFUE | $6,000–$12,000 | No | Cold |
| Ductless mini-split | Moves outdoor heat | 250%–400% effective | $4,000–$10,000 | Yes | Mild to moderately cold |
| Electric baseboard | Electric resistance | 100% at unit | $1,000–$3,000 | No | Mild or supplemental |
This guide draws on U.S. Department of Energy heating system documentation, EIA Residential Energy Consumption Survey fuel-share data, and ENERGY STAR efficiency specifications for furnaces, boilers, and heat pumps. Cost ranges reflect national installed averages including equipment, labor, and permits; they exclude ductwork replacement, electrical panel upgrades, and gas line runs, each of which can add several thousand dollars. We excluded wood, pellet, and geothermal systems from this comparison because they serve a small share of homes and carry very different siting requirements.
Sizing matters as much as system type. A properly sized system is calculated with an ACCA Manual J load calculation, not a rule of thumb based on square footage. Oversized equipment short-cycles, wears out early, and leaves rooms unevenly heated.
Last updated: September 2026. We review this guide twice a year, before heating season and after.
Look at the equipment itself. A furnace is a tall metal cabinet with a large duct on top and a flue pipe. A boiler is a squat unit with copper or steel pipes running out of it. A heat pump has an outdoor unit that runs in winter — if the outdoor box is spinning on a cold January day, it is a heat pump, not an air conditioner.
Gas furnaces typically last 15–20 years, heat pumps 12–15 years, and boilers 20–30 years. Actual life depends far more on annual maintenance and correct sizing than on brand.
It depends on local electricity and gas rates. Where electricity is moderately priced, a heat pump usually costs less per unit of heat than a 95% AFUE furnace. Where natural gas is inexpensive and electricity is not, the furnace often wins. Compare your own utility rates before deciding.
Yes. Cold-climate models rated for low-temperature operation deliver useful heat down to about 5°F, and some hold output below zero. Efficiency still declines as it gets colder, which is why most systems include backup electric or gas heat for the coldest hours.
The usual causes are a closed or crushed duct, an unbalanced damper, an undersized supply register, or heat loss through windows and attic gaps. A technician can check static pressure and airflow at the register before anyone proposes replacing equipment.
Every 1–3 months for a standard one-inch filter, more often with pets or during heavy use. A clogged filter restricts airflow, raises energy use, and is the single most common cause of avoidable no-heat service calls.
Not to the boiler itself. Your options are a ducted air conditioner if the home has or can get ducts, or ductless mini-splits, which many homeowners add room by room while keeping the radiators for winter.
The federal 25C energy efficient home improvement credit ended for equipment placed in service after December 31, 2025. State and utility rebates still exist in many areas — check the DSIRE database and your own utility's rebate page before you buy.
A real tune-up checks combustion and gas pressure or refrigerant charge, inspects the heat exchanger, tests safety controls and the thermostat, measures temperature rise across the unit, and cleans the burners or coil. Anything less than that is usually a filter change with a sales visit attached.
A useful rule: if the repair costs more than a third of a new system and the unit is past two-thirds of its expected life, replacement is usually the better value. Repeated repairs on a 20-year-old furnace rarely pay off. If your system is aging but still running, it is worth reading what a home warranty covers and how it works before the next breakdown.
Most home warranty plans include the heating system, though coverage caps, pre-existing condition clauses, and maintenance requirements vary widely by contract. Compare plans against the best home warranty companies of 2026 and read the exclusions before assuming a furnace replacement is covered.
This guide is for general informational purposes and is not a substitute for an on-site evaluation by a licensed HVAC professional. Efficiency ratings, equipment costs, fuel prices, and rebate programs change frequently and vary by state and utility. Gas appliances involve combustion and carbon monoxide risk; have them inspected annually by a qualified technician. Always confirm equipment sizing with an ACCA Manual J load calculation before purchase.
Reviewed by the HomeSimple editorial team. We write from field experience with residential HVAC service and manufacturer documentation, and we cite government efficiency data rather than manufacturer marketing claims.
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