Propane vs Electric Heating Cost Calculator
See what the same heat costs from a propane furnace and from an electric heat pump at your prices.
Sample numbers only, to show how it works. Replace them with yours.
Enter the gallons of propane you burn for heating in a year, or a yearly spend.
This is an estimate, not a professional calculation. See the disclaimer and the methodology.
How it is calculated
The calculator asks how much propane you burn for heating in a year, in gallons. A gallon of propane holds 91,452 Btu (EIA sample factor), which is 0.915 therms. A furnace turns only part of that into heat for the house, and the share is its AFUE. Heat delivered = gallons × Btu per gallon × AFUE. Propane cost = gallons × price per gallon.
A heat pump has to supply the same heat with electricity. HSPF2 is the heat it supplies in Btu for each watt-hour of electricity over a heating season. Electricity = heat delivered ÷ HSPF2 ÷ 1,000 kWh. Electricity cost = kWh × price per kWh.
The electricity price starts at the 2024 annual average residential price EIA reports for your state. The propane price starts at the U.S. average residential price EIA reported for the week of October 26, 2026, $2.73 per gallon before taxes. EIA collects residential propane prices only for some states and mainly in the heating season, so one national number is the only fair starting point. Replace it with the price on your delivery bill.
The AFUE and HSPF2 start at the ENERGY STAR minimums (95 and 7.8) for certified gas furnaces in the South and split-system heat pumps. Enter your own.
The result is running energy only. It leaves out installation, tank rental, delivery fees, maintenance, equipment life, defrost cycles, backup heat and any change in your cooling use. The break-even line shows the electricity price at which both cost the same.
Worked examples
The same home at U.S. average prices
800 gallons a year (assumed), a 95 AFUE furnace and a 7.8 HSPF2 heat pump. Propane at $2.73 per gallon costs $2,184. The heat pump uses 8,911 kWh at 16.5 cents, $1,468. The heat pump costs $716 less to run.
Cheap and dear electricity
With the same 800 gallons, electricity at 10 cents makes the heat pump $1,293 less to run than propane. At 30 cents it comes out $489 more. The price of electricity decides most of the answer, so use your own rate.
Frequently asked questions
Is a heat pump cheaper to run than a propane furnace?
It depends on the propane price, the electricity price and the efficiency of both machines. The calculator compares them for your numbers, and the break-even line shows the electricity price at which both cost the same.
How do I find my gallons of propane for heating?
Your delivery tickets show the gallons for each delivery. Add the ones in the heating season and subtract what cooking, water heating or a dryer use. If you only know the dollars, enter the yearly spend and the gallons are filled in at the price above.
Where does the propane price come from?
The starting price is the U.S. average residential price EIA reported for the week of October 26, 2026, before taxes. It changes every week in the heating season and differs by state and supplier, so replace it with your own.
What is a gallon of propane worth in heat?
EIA gives one gallon of propane as 91,452 Btu. A furnace delivers that times its AFUE as heat.
Will a heat pump work in cold weather?
A heat pump loses some efficiency as it gets colder, and HSPF2 is rated for one reference climate. If you expect your climate to cost you efficiency, enter a lower HSPF2.
Related calculators
Sources and last update
- U.S. Energy Information Administration, Residential Propane Weekly Heating Oil and Propane Prices
- U.S. Energy Information Administration, Units and calculators explained: British thermal units (propane per gallon, therm, kWh)
- U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (average price by state)
- ENERGY STAR, Air Source Heat Pumps key product criteria (HSPF2)
- ENERGY STAR, Furnaces key product criteria (AFUE)
- U.S. Energy Information Administration, copyrights and reuse
Last updated: November 3, 2026. See methodology and sources.