7 comments on “Heating Cost Calculator | Oil vs. Gas vs. Propane vs. Electricity Cost”

1. gary December 18, 2022 at 10:20 am

   this don’t tell you shit. How much is a BTU per electric at $0.141 per kilowatt compared to gas @ $2.65 therm per BTU?

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   1. Leo B Post authorJanuary 5, 2023 at 4:36 pm

      Gary,

      Great question – it is actually pretty simple. Electricity has 3412 BTUs per kWh, and Gas about 99976 per Therm.

      To make numbers less confusing, I will give price per 1000 BTUs.

      Electricity: $0.04132473
      Natural Gas: $0.02650874

      Now on at first glance, it looks like electricity is 56% more expensive, but, the 3412 is how many BTUs you get from a space heater or electric baseboards. Modern ductless heat pumps have average efficiency (COP) between 2.5 and 4+ …

      What this means is you get 2.5x to 4x more BTUs per kWh from a heat pump, compared to electric space heater.

      For example, my favorite brand – Fujitsu, has typical COP for their multi-zone Low Temp Heating models between 3.3 to 4!

      I have a in my house a AOU36RLXFZ1 (3 TON, 4 zone heat pump) which is rated at 3.55 COP for non-ducted installs, which is what I have.
      I also have 9RLS3YH and 09LZAH1 single zone models with 4.1 COP

      What this means in real numbers – instead of $0.04132473 / 1000 BTUs, I get between $0.0103311825 and $0.01377491 which is less than half of natural gas.

      Now, another factor to keep in mind – even the most efficient furnace, with well-insulated ducts – you still lose 15-20% of your heat in the ductwork! So the cost of the heat that stays in your home is closer to $0.3 – $0.4 per 1000 BTUs.

      What this means in real numbers – I have a single zone Fujitsu 09LZAH1 running right now, and it is effectively heating half of my house – 800 s.f. downstairs open space, and residual heat going to upstairs rooms.

      It is set for 86F (because I have a little cold). Thermostat on the other side of the house is showing 78F. Thermostat in a room upstairs shows 76F (the room is directly above my indoor unit, so most of residual heat goes there. Temp outside is 40F.

      Finally the power draw is consistently 1400W .. that is LESS than a single space heater!

      Bottom line – if your electric cost is less than $0.15 / kWh in 2023, it is almost always better to go with a ductless heat pump!

      In my case, as of Dec 2022, my electric cost is $0.3218, and is supposed to increase by 40% in Jan 2023. However, I have solar panels, which cover about 85% of my electricity thorough the year, so I pretty much only pay for lights and fridges and other small appliances, and my AC and Heat is free!

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2. Joe Bonanno June 1, 2022 at 4:30 pm

   We recently installed a high efficiency Heat pump system from our old oil burner hot water system; we are receiving exorbitant electric bills with 3-9x the kWh usage when compared to prior years; do you have suggestions?

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   1. Leo B Post authorJune 15, 2022 at 6:03 pm

      @Joe

      Did you install a central heat pump? Like the same as a central AC – sitting in your basement or attic, with a big square condenser/compressor outside?

      Where do you live, and how much you pay for each kWh? Or, what’s a total number of KWHs you used last month, and what was the cost?

      So main problem that I suspect – you have a CENTRAL HEAT PUMP … these puppies are NOT made to replace your main heating system (manufacturers and green-freaks are lying to you) … Here is more on Heat Pump HEATING Efficiency

      Central Heat Pumps are “OK” at heating until about 35-40°F – below that, an ELECTRIC HEAT STRIP turns on… so it is effectively a resistive electric heating, only you also lose anywhere from 10-25% of your heat in the ducts…

      In some cases a central heat pump is paired with a high efficiency gas furnace (if you have gas) … but both must be “communicating” variants, capable of working together … basically they cost more $$

      What you can do:

      #1 – Add a lot of insulation! This is good regardless of next item.
      #2 – Install large solar system. Depending on where you live, you payback will be between 4-8 years. For me, payback should be less than 4 years, as in Massachusetts where I live, electric costs increased over 60% in 1 year … we now pay over $0.30 per kWh, and I have 15.4 KW of solar.

      In many situation, your financing cost will be LOWER than cost of electricity. DO NOT do “Solar Lease” or PPA (power purchasing agreement) – those are total scams.

      #3 – contact your Electric company and change your rate plan to “Electric Heating”.

      Bottom line – without spending some more money, it’s hard to “reduce” costs. But, in my case, when I was planning out my switch from OLD gas furnace to DUCTLESS Heat Pumps + Solar, I ran all the numbers, and excluding costs of Ductless equipment (which I installed myself).

      I will be having almost free heating/cooling/electricity in 3 years. But to get there, I had to:

      A) Cut 15 trees
      B) Replace my roof
      C) Install 15.4 kW solar ($40,300 financed)
      D) Spent months on research and learning the HVAC trade (including going to a trade school, and paying for it out of pocket)
      E) Actually buying and installing all my HVAC equipment

      Good luck

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3. George March 17, 2022 at 5:03 am

   Lol, do your own research.

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4. Stephen Miller March 8, 2022 at 3:01 pm

   I can use either LPgas or Electric heat for our home. What is the formula to compare prices of each to decide which is cheaper to use?

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5. Donald W. Stemple January 10, 2022 at 3:56 pm

   If I have a 20×20 room. what would it cost to heat that room on the average per month for each heat source, ie – electric, natural gas, fuel oil, propane, wood stove, pellet stove in the state of Maryland or West Virginia

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