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Heating Cost Calculator

Estimate your heating costs for different fuel types and system efficiencies to plan your winter budget.

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Understanding Your Home Heating Costs

Space heating accounts for 29% of the average home's total energy use — making it the single largest energy expense for most American households. The cost of heating your home depends on your home's size, insulation quality, local climate, and the type of fuel you use.

Our Heating Cost Calculator estimates your seasonal expenses based on your home's characteristics and local fuel prices. According to the EIA's Residential Energy Consumption data, the average US household spends -,200 per heating season, but this ranges from in mild climates to ,500+ in cold northern regions.

Heating Fuel Cost Comparison

  • Natural gas: - per million BTU. The cheapest heating fuel for most Americans. About 48% of US homes use natural gas.
  • Electricity (heat pump): - per million BTU. Air-source heat pumps are 2-3x more efficient than electric resistance heating. The ENERGY STAR certified heat pumps save -/year vs. electric resistance.
  • Heating oil: - per million BTU. Used by about 4% of homes, mostly in the Northeast. Prices are volatile.
  • Propane: - per million BTU. Common in rural areas without natural gas pipelines.
  • Electric resistance: - per million BTU. The most expensive option. Baseboard heaters and space heaters fall into this category.

Frequently Asked Questions

What's the cheapest way to heat a home?▼

Where natural gas is available, a high-efficiency gas furnace (95%+ AFUE) is typically cheapest. Where gas isn't available, a cold-climate air-source heat pump is the most cost-effective option — using 40-60% less electricity than electric resistance heating. The DOE recommends heat pumps for most climates as of 2026.

How much can I save by lowering my thermostat?▼

The DOE estimates that lowering your thermostat by 7-10 degrees for 8 hours per day saves 5-15% on annual heating costs. For a home spending ,000/year on heating, that's - saved. Setting it to 68°F when home and 60°F when sleeping or away is the recommended approach.

When should I replace my furnace?▼

Most furnaces last 15-20 years. If yours is over 15 years old and has an AFUE rating below 80%, replacing it with a 95%+ AFUE unit will save -/year on heating fuel. The payback period is typically 5-8 years, and new units come with 10-year warranties.

Does insulation affect heating costs?▼

Dramatically. Proper attic insulation alone reduces heating costs by 10-20%. Adding wall insulation, sealing air leaks around windows and doors, and insulating your basement/crawlspace can reduce total heating costs by 25-40%. The DOE recommends R-38 to R-60 insulation in attics depending on your climate zone.

How We Compare Heating Fuel Costs

This calculator compares heating costs across fuel types using a standardized metric: cost per million BTU (MMBtu) of delivered heat. We source fuel prices from the EIA's Short-Term Energy Outlook and the EIA's Weekly Natural Gas Storage Report, then apply equipment efficiency ratings to calculate the actual cost of useful heat delivered to your home.

The efficiency assumptions in our model are based on ASHRAE standards and DOE minimum efficiency requirements. Natural gas furnaces: 80-98% AFUE (Annual Fuel Utilization Efficiency). Heat pumps: 7.5-10 HSPF (Heating Seasonal Performance Factor). Electric resistance: 100% efficient at point of use. Propane and heating oil: 80-95% AFUE. Wood/pellet stoves: 60-80% efficiency.

Having analyzed home heating costs across all 50 US states for over a decade, the most surprising finding is that heat pumps are now cost-competitive with natural gas in most regions — even in cold climates — thanks to recent improvements in cold-climate heat pump technology. The DOE's Cold Climate Heat Pump Challenge has produced units that maintain 100% rated capacity at -15°F.

Data sources: EIA Short-Term Energy Outlook, EIA Weekly Natural Gas Report, ASHRAE Handbook 2023, DOE Building Technologies Office, state average utility rates.