Propane Vs Electric Heat Cost Calculator






Propane vs Electric Heat Cost Calculator | Compare Heating Expenses


Propane vs Electric Heat Cost Calculator

Accurately compare the annual operational costs of heating your home using propane versus electricity (Standard or Heat Pump).


Average US home uses 40-70 Million BTUs per year for heating.
Please enter a valid positive number.


Current local market price for propane fuel.


Standard: 80%, High Efficiency: 90-98%.


Check your utility bill for the total rate per kilowatt-hour.


Annual Savings

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Propane vs Electric Heat Comparison

Annual Propane Cost
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Annual Electric Cost
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Cost per 1 Million BTU (Propane)
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Cost per 1 Million BTU (Electric)
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Cost Comparison Visualizer

Propane Electric $0 $0

Figure 1: Comparison of annual operating costs based on current inputs.


What is the Propane vs Electric Heat Cost Calculator?

The propane vs electric heat cost calculator is a specialized tool designed for homeowners, HVAC professionals, and builders to determine which fuel source is more economical for residential heating. In the current energy landscape, choosing between a liquid petroleum gas (propane) furnace and an electric heating system—whether resistance baseboards or high-efficiency heat pumps—requires looking beyond the initial installation price.

This propane vs electric heat cost calculator performs complex thermodynamic conversions, translating gallons of propane and kilowatt-hours of electricity into a unified metric: cost per Million BTU (MMBTU). This allows for an “apples-to-apples” comparison of energy density and system efficiency, helping you avoid common misconceptions about fuel pricing.

Propane vs Electric Heat Cost Calculator Formula

To calculate the cost of heating accurately, our propane vs electric heat cost calculator uses the following variables and physical constants:

  • Propane Energy Density: ~91,500 BTUs per Gallon
  • Electricity Energy Density: 3,412 BTUs per Kilowatt-hour (kWh)

The Mathematical Formulas

Propane Cost per MMBTU:
(1,000,000 / 91,500) × (Price per Gallon) / (Furnace Efficiency)

Electric Cost per MMBTU:
(1,000,000 / 3,412) × (Price per kWh) / (System COP)

Variable Meaning Unit Typical Range
Annual Load Total heat energy required Million BTU 30 – 100 MMBTU
Propane Price Local cost of fuel USD / Gallon $2.50 – $4.50
COP Coefficient of Performance Ratio 1.0 – 4.5
AFUE Furnace Annual Fuel Utilization Efficiency Percentage 80% – 98%

Practical Examples (Real-World Use Cases)

Example 1: Cold Climate Comparison

A homeowner in Maine has an annual load of 80 MMBTU. Propane is $3.50/gallon with a 95% efficient furnace. Electricity is $0.22/kWh, and they are considering a heat pump with a COP of 2.8. Using the propane vs electric heat cost calculator, we find:

  • Propane Annual Cost: $3,091
  • Electric Heat Pump Cost: $1,841
  • Outcome: Switching to a heat pump saves $1,250 annually.

Example 2: Low-Efficiency Electric Resistance

A small cabin uses 30 MMBTU. Propane is $3.00/gallon (80% efficiency). Electric resistance baseboards (COP 1.0) are used at $0.12/kWh. The propane vs electric heat cost calculator shows:

  • Propane Annual Cost: $1,229
  • Electric Resistance Cost: $1,055
  • Outcome: Electricity is slightly cheaper due to high propane delivery fees and lower furnace efficiency.

How to Use This Propane vs Electric Heat Cost Calculator

1. Input Heating Load: Start by entering your home’s annual heating requirement. You can find this on your previous years’ energy audits or estimate it based on square footage and insulation quality.

2. Enter Local Rates: Prices vary wildly by region. Check your latest propane delivery invoice and your electric utility bill for accurate propane vs electric heat cost calculator results.

3. Select Efficiency: Be honest about your equipment age. An old propane furnace might only be 80% efficient (AFUE), while a new one is 96%.

4. Analyze the Visualizer: Look at the bar chart generated by the propane vs electric heat cost calculator to see the magnitude of difference between the two sources.

5. Consider COP: If you use a heat pump, the COP (Coefficient of Performance) is vital. As temperatures drop, COP drops, which this calculator handles through average seasonal COP inputs.

Key Factors That Affect Propane vs Electric Heat Results

1. Outdoor Temperature: Heat pumps lose efficiency as the air gets colder. While the propane vs electric heat cost calculator uses an average COP, extreme cold may require propane backup.

2. Local Utility Rates: Electricity rates are subject to “time-of-use” pricing in many areas, while propane is subject to supply-chain volatility.

3. Maintenance Costs: Propane furnaces require annual combustion cleanings. Heat pumps require filter changes and coil cleanings. These O&M costs impact long-term heating cost comparison.

4. System Longevity: A propane furnace often lasts 20 years, while air-source heat pumps may need replacement after 15 years, affecting the total lifecycle cost.

5. Carbon Footprint: Electric heating, especially when paired with a clean grid, offers lower emissions than propane combustion.

6. Delivery Fees: Propane often includes tank rental fees and delivery surcharges that should be factored into the “price per gallon” in the propane vs electric heat cost calculator.

Frequently Asked Questions (FAQ)

Is propane or electric heat cheaper in 2024?
It depends heavily on your local electricity rates and whether you use a high-efficiency heat pump. Generally, heat pumps (electric) are cheaper than propane when the COP remains above 2.5.

What does COP mean in the propane vs electric heat cost calculator?
COP stands for Coefficient of Performance. It measures how much heat energy you get for every unit of electricity. A COP of 3.0 means you get 3 units of heat for 1 unit of electricity.

Does furnace efficiency affect the result?
Yes. An 80% efficient furnace wastes 20% of your fuel up the chimney. Upgrading to a 95% model significantly lowers the annual propane cost.

Should I replace my propane furnace with a heat pump?
If the propane vs electric heat cost calculator shows savings of more than $500/year, the ROI for a heat pump is usually excellent over a 10-year period.

How many BTUs are in a gallon of propane?
There are approximately 91,500 BTUs in one standard gallon of propane.

What is the “Heating Load”?
This is the total amount of heat your home needs over a winter season to stay comfortable, usually measured in Million BTUs (MMBTU).

Can I use this for space heaters?
Yes. Set the electric system type to “Resistance (COP 1.0)” for an accurate comparison with electric space heaters.

Is electric heat safer than propane?
Electric heat removes the risk of carbon monoxide leaks and fuel leaks, though modern propane systems are extremely safe when maintained.

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