Gas vs Electric Cost Calculator

Compare the cost of heating your home with natural gas versus electric heat pump.

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Total BTU needed for heating per year
US average: $1.20/therm
US average: $0.16/kWh
Coefficient of Performance (typical: 2.5-4.0)

Gas vs Electric Heating: The Basics

Comparing gas and electric heating costs requires understanding efficiency ratings and fuel prices. Natural gas furnaces are measured by AFUE (Annual Fuel Utilization Efficiency), typically 80–98%, while electric heat pumps are measured by COP (Coefficient of Performance), typically 2.5–4.0, meaning they produce 250–400% more heat than the electricity they consume.

According to the U.S. Energy Information Administration, natural gas prices average $1.20 per therm nationally, while electricity averages $0.16 per kWh. However, these rates vary significantly by region — gas can be as low as $0.60/therm in gas-producing states like Texas or Louisiana, but over $2.00/therm in states without pipeline infrastructure.

When Electric Heat Pumps Win

  • Mild to Moderate Climates: In regions with heating seasons under 150 days, heat pumps often beat gas furnaces.
  • High Gas Prices: When gas exceeds $1.50/therm, heat pumps become more competitive.
  • Summer Cooling: Heat pumps provide free cooling, adding value beyond heating.
  • Clean Energy Regions: In areas with high renewable electricity, heat pumps have lower carbon footprint.

📊 Real Example: A 2,000 sq ft home in Ohio needs 60 million BTU/year for heating. A 95% AFUE gas furnace costs approximately $790/year to operate. A heat pump with COP 3.0 costs approximately $640/year — a 19% savings.

⚡ Pro Tip: Consider a dual-fuel system that switches between gas and electric based on outdoor temperature. This maximizes efficiency during shoulder seasons while ensuring reliability during extreme cold when heat pump efficiency drops.

For more information on heating fuel comparisons:

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Disclaimer: This calculator provides estimated cost comparisons based on average efficiency ratings. Actual costs may vary by region, equipment efficiency, and utility rates.