Propane vs Electric Heat Cost Calculator | Which Is Cheaper?
Propane and electric resistance heat are the two most common options for homes without natural gas access. Comparing them by raw price per gallon or per kilowatt-hour produces the wrong answer because the two fuels are measured, delivered, and consumed at entirely different efficiencies.
The propane vs electric heat cost calculator converts both fuels to a common unit: dollars per million BTU delivered. That unit removes the distortion caused by gallons versus kilowatt-hours and gives an accurate side-by-side cost you can act on.
This calculator also includes a heat pump mode that most comparable tools skip, even though heat pumps change which fuel wins in virtually every U.S. market.
Propane vs Electric Heat Cost Calculator
Compare heating costs in dollars per million BTU — the only unit that removes the gallon vs kWh distortion
Your Fuel Prices
Edit to match your last delivery invoice
Found on your electric bill ($/kWh)
COP = heat delivered per unit electricity consumed
Found on your gas bill ($/therm)
Annual Heating Load
Cost Per Million BTU Delivered
| Fuel / System | Your Rate | Cost / MMBTU | vs Propane |
|---|
MMBTU = million BTU. EIA standard unit for cross-fuel comparison. Propane = 91,500 BTU/gal. Electricity = 3,413 BTU/kWh. Natural gas = 100,000 BTU/therm.
Estimated Annual Heating Cost
| Fuel / System | Annual Usage | Annual Cost | Savings vs Propane |
|---|
Break-Even Propane Price at Your Electricity Rate
Propane is cheaper than electric resistance only when it stays below this price at your electricity rate.
Calculations use EIA-standard conversion factors: 91,500 BTU/gal propane; 3,413 BTU/kWh electricity; 100,000 BTU/therm natural gas. Square footage estimates assume propane as primary heat at selected climate zone. Results are estimates — verify with a licensed HVAC professional before fuel-switching decisions.
How the Propane vs Electric Heat Cost Calculator Works
Quick Takeaways
- Propane delivers 91,500 BTU per gallon. Electric resistance delivers 3,413 BTU per kilowatt-hour. Direct price comparison without a common unit consistently produces a misleading result.
- At $0.15 per kWh, electric resistance costs roughly $44 per million BTU. Propane must stay below $3.62 per gallon at 90% furnace efficiency to beat that.
- Heat pumps change the comparison entirely. A heat pump at COP 2.5 and $0.15 per kWh delivers heat at $18 per million BTU, lower than any realistic U.S. propane price.
- If natural gas service is available at your address, the propane vs electric heat comparison is secondary. Natural gas at $1.50 per therm costs roughly $17 per million BTU, far below both electric resistance and propane.
The U.S. Energy Information Administration recommends comparing heating fuels in dollars per million BTU, the standard unit that eliminates distortion from different measurement systems.
This heating fuel cost comparison calculator applies that methodology. For propane: price per gallon divided by 91,500 BTU per gallon, divided by furnace AFUE efficiency, multiplied by 1,000,000. For electric resistance: price per kWh divided by 3,413 BTU per kWh, multiplied by 1,000,000.
The heat pump input uses a COP (coefficient of performance) between 1.5 and 3.5. At COP 2.5, effective BTU per kWh rises from 3,413 to 8,532, cutting the electric cost per million BTU by 60 percent compared to resistance heat.
The Break-Even Propane Price: What Competitors Don't Show
Every guide on propane vs electric heat cost says the answer depends on local rates but none give the exact threshold. The break-even formula is: electricity rate × 91,500 × furnace AFUE / 3,413.
| Electricity Rate | Break-Even Propane Price (90% AFUE) |
|---|---|
| $0.10/kWh | $2.41/gal |
| $0.12/kWh | $2.90/gal |
| $0.15/kWh | $3.62/gal |
| $0.18/kWh | $4.35/gal |
| $0.20/kWh | $4.83/gal |
At $0.15 per kWh, propane is the lower-cost fuel only when it stays below $3.62 per gallon. National propane prices have ranged from $2.50 to $3.50 per gallon in recent years, making the result genuinely market-dependent. High-rate markets like New England and California push the threshold to $4.00 to $4.80 per gallon.
Electric Resistance vs Heat Pump: The Split That Changes Everything
Most propane vs electric heat comparisons assume electric resistance at 100 percent efficiency. Heat pumps operate differently: they move heat from outside air rather than generate it, delivering 2 to 3.5 BTU per BTU of electricity consumed.
At COP 2.5 and $0.15 per kWh, a heat pump delivers heat at $17.56 per million BTU. Matching that with propane requires propane below $1.45 per gallon. No U.S. propane market has reached that price. Cold-climate heat pumps rated to -13°F maintain a COP of 1.8 to 2.0 at extreme temperatures. At COP 2.0 and $0.15 per kWh, propane break-even drops to $2.41 per gallon.
Propane vs Electric vs Natural Gas: Three-Fuel Cost Comparison
The propane vs natural gas cost calculator reveals a consistent pattern: natural gas is cheaper per million BTU than propane in almost every scenario, and matters for homes weighing propane against utility gas when both are available.
| Fuel | Price Example | Efficiency | Cost per Million BTU |
|---|---|---|---|
| Electric resistance | $0.15/kWh | 100% | $44 |
| Electric resistance | $0.20/kWh | 100% | $59 |
| Heat pump (COP 2.5) | $0.15/kWh | 250% effective | $18 |
| Propane | $2.50/gal | 90% AFUE | $30 |
| Propane | $3.00/gal | 90% AFUE | $36 |
| Natural gas | $1.50/therm | 90% AFUE | $17 |
| Natural gas | $2.00/therm | 90% AFUE | $22 |
For off-grid homes, propane outperforms electric resistance only when electricity rates are high or propane is below the break-even threshold shown above. For a direct comparison of propane and natural gas across outdoor fire features, see propane vs. natural gas fire pits.
Worked Examples
Example 1: 1,500 sq ft Midwest Home, Electric Resistance vs Propane
Annual heating load: 10,000 kWh equivalent. Electricity rate: $0.14/kWh. Propane price: $2.80/gal.
Electric resistance: 10,000 kWh × $0.14 = $1,400/year. Propane: 34,130,000 BTU ÷ 82,350 = 414 gallons × $2.80 = $1,159/year.
Result: Propane saves $241 per year at these rates. Break-even propane price at $0.14/kWh is $3.38/gal.
Example 2: Same Home Switches to a Heat Pump (COP 2.5)
Heat pump kWh consumed: 10,000 ÷ 2.5 = 4,000 kWh × $0.14 = $560/year. Propane (from Example 1): $1,159/year.
Result: Heat pump saves $599/year over propane and $840/year over resistance heat. Payback runs 3 to 5 years at this savings rate.
Example 3: Off-Grid 2,000 sq ft Northeast Home, High Electricity Rate
Annual heating load: 14,000 kWh equivalent. Electricity rate: $0.22/kWh. Propane price: $3.20/gal.
Electric resistance: 14,000 kWh × $0.22 = $3,080/year. Propane: 47,782,000 BTU ÷ 82,350 = 580 gallons × $3.20 = $1,856/year.
Result: Propane saves $1,224/year. Break-even propane price at $0.22/kWh is $5.32/gal, above any current U.S. propane market price.
When Supplemental Heating Changes the Whole-House Math
A wood stove in the main living area can cut whole-house propane or electric consumption by 20 to 40 percent. Wood stoves at Fire Pit Surplus include EPA-certified models rated above 75 percent HHV efficiency. High-efficiency wood stoves sized for 1,000 to 2,000 square feet are the most common supplemental purchase for homes on propane or electric heat. See wood stove installation cost for a full breakdown of equipment, labor, and permit costs before adding supplemental wood heat.
Outdoor heating sits outside the whole-house fuel equation. Propane fire pits add spot heat to patios and covered areas without drawing from the central heating budget. Gas patio heaters rated at 40,000 to 80,000 BTU extend the outdoor season without affecting the whole-house fuel calculation. Electric patio heaters run on standard household current with no fuel delivery or storage required.
What Your Result Means
The propane vs electric heat cost calculator returns annual fuel cost at your entered rates. Equipment, installation, and maintenance are not included in the output. The propane usage calculator estimates annual propane spend and session runtime at your BTU load. Browse fireplaces for all fuel types and sizes. Fire tables add ambient outdoor warmth for patios and covered spaces.
Frequently Asked Questions
Is propane heat cheaper than electric?
Propane can be cheaper than electric resistance heat when propane is below the break-even price for your electricity rate. At $0.15 per kWh, propane must cost under $3.62 per gallon to be the better value. At $0.12 per kWh, the threshold drops to $2.90 per gallon.
How do I calculate propane vs electric heating cost?
Divide propane price by 91,500 BTU per gallon and by furnace efficiency to get cost per BTU. Divide your kWh rate by 3,413 BTU per kWh for electric resistance. Convert both to dollars per million BTU to compare accurately regardless of which unit each fuel is sold in.
At what propane price does propane beat electric heat?
At $0.12 per kWh, propane must stay under $2.90 per gallon to beat electric resistance heat in a 90% AFUE furnace. At $0.15 per kWh, break-even rises to $3.62 per gallon. Above that price, electric resistance delivers more heat per dollar at that electricity rate.
How does a heat pump compare to propane on heating cost?
A heat pump delivers 2 to 3.5 units of heat per unit of electricity consumed. At a COP of 2.5 and $0.15 per kWh, a heat pump provides heat at about $17.60 per million BTU. Beating that with propane requires propane under $1.45 per gallon, well below any realistic market price.
Is propane or natural gas cheaper for home heating?
Natural gas is almost always cheaper than propane per million BTU delivered. At $1.50 per therm, natural gas costs about $16.70 per million BTU in a 90% AFUE furnace. Propane at $3.00 per gallon costs roughly $36 per million BTU, more than double the natural gas rate.
What is the most cost-efficient heating fuel for a home without natural gas?
In most U.S. markets, a cold-climate heat pump delivers the lowest cost per million BTU at current electricity rates. For off-grid homes without natural gas access, propane beats electric resistance heat only when propane stays below roughly $3.60 per gallon at $0.15 per kWh.
Final Thoughts
The propane vs electric heat cost calculator answers the question most heating guides leave open: not whether one fuel is generally cheaper, but the exact price threshold where the answer flips for your electricity rate.
Run the calculator with your current rates and check the break-even propane price against your last delivery invoice. The answer is almost always clear within two inputs.
Heating cost calculations use EIA-standard conversion factors: 91,500 BTU per gallon of propane, 3,413 BTU per kilowatt-hour of electricity, 100,000 BTU per therm of natural gas. Furnace efficiency defaults to 90% AFUE. Actual results vary by equipment age, insulation, and local climate. Verify with a licensed HVAC professional before making fuel-switching decisions.
