How much does it cost to heat and cool a 2,000 sq ft home in Arkansas?

In Arkansas (14.3¢/kWh via Entergy Arkansas), a 2,000 sq ft home averages $475/year ($40/month) with a high-efficiency heat pump, $543/year with a natural gas furnace and central AC, and $1,328/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in Arkansas?

At Arkansas's natural gas rate of $1.4/therm, the economic break-even electricity price for a COP 3.1 heat pump is 16.1¢/kWh. Comparing this against Arkansas's residential electricity rate of 14.3¢/kWh determines annual operating savings.

Arkansas Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$40/mo

AR Electricity / Gas Rate

14.3¢ / $1.4

15-Yr Savings vs Baseboard

+$9,195

Arkansas Annual Heating & Cooling Bills by Home Size

In Arkansas, a 2,000 sq ft home averages $475/year ($40/mo) using a cold-climate heat pump ($363/yr winter heating + $112/yr summer cooling), compared to $543/year with a natural gas furnace and $1,328/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$238/yr ($20/mo)	$272/yr ($23/mo)	$664/yr ($55/mo)	+$2,790
1,500 Sq Ft	$356/yr ($30/mo)	$407/yr ($34/mo)	$996/yr ($83/mo)	+$6,000
2,000 Sq Ft	$475/yr ($40/mo)	$543/yr ($45/mo)	$1,328/yr ($111/mo)	+$9,195
2,500 Sq Ft	$594/yr ($50/mo)	$679/yr ($57/mo)	$1,660/yr ($138/mo)	+$12,390
3,000 Sq Ft	$713/yr ($59/mo)	$815/yr ($68/mo)	$1,991/yr ($166/mo)	+$15,570
3,500 Sq Ft	$831/yr ($69/mo)	$950/yr ($79/mo)	$2,323/yr ($194/mo)	+$18,780