Gas vs Electric Heating Cost Calculator
Comparing heating costs between natural gas and electricity requires converting both to the same unit of useful heat. This calculator uses the EIA standard: 1 therm of natural gas = 100,000 BTU, and 1 kWh of electricity = 3,412 BTU. Enter your annual heat load (in BTU), your local fuel rates, and your equipment efficiency to see a side-by-side annual cost comparison for gas furnace, electric resistance, and electric heat pump heating.
Heating cost comparison formulas
Gas Cost = (Annual Load in BTU / 100,000) / (AFUE / 100) x Gas Rate ($/therm)
Resistance Cost = (Annual Load in BTU / 3,412) x Electricity Rate ($/kWh)
Heat Pump Cost = (Annual Load in BTU / 3,412) / COP x Electricity Rate ($/kWh)
EIA energy conversion factors: 1 therm = 100,000 BTU; 1 kWh = 3,412 BTU. Source: EIA Monthly Energy Review, Appendix A.
Key factors in the gas vs electric decision
- Local utility rates vary significantly by state. Gas is cheapest in producing states (TX, OK, WY). Electricity varies from $0.09/kWh (LA) to $0.30+/kWh (HI, CT).
- Heat pumps can achieve COP of 2.5 or higher, making them cost-competitive with gas even at moderate gas prices.
- Cold-climate heat pumps maintain high COP down to -13 F, making them viable in most US locations.
- The federal Inflation Reduction Act provides a 30% tax credit up to $2,000 for qualifying heat pump installations through 2032.
- Gas furnaces also require a gas line and annual maintenance, adding to total cost of ownership.
Gas vs electric heating: frequently asked questions
How do I compare gas and electric heating costs?
To compare heating fuel costs fairly, you must account for the efficiency of each system. Gas heating is measured in therms (1 therm = 100,000 BTU). Electric heating in kWh (1 kWh = 3,412 BTU). Divide the fuel cost by the system efficiency to get the cost of useful heat delivered.
What is the EIA energy conversion for natural gas?
According to the U.S. Energy Information Administration (EIA), one therm of natural gas equals 100,000 BTU. One MMBtu (million BTU) equals 10 therms. The EIA publishes monthly average residential natural gas prices in dollars per therm by state.
What does AFUE mean for a gas furnace?
AFUE (Annual Fuel Utilization Efficiency) is the ratio of heat output to fuel energy input over a full heating season. A 95% AFUE furnace converts 95% of the gas it burns into useful heat. The remaining 5% is lost through the flue. The federal minimum AFUE for gas furnaces is 80%.
Is gas or electric heating cheaper?
It depends on your local utility rates and system efficiency. In most US regions, natural gas is cheaper per BTU than electric resistance heating. However, heat pumps can deliver 2-4 kWh of heat per kWh of electricity, making them competitive with or cheaper than gas in many climates. Compare your actual utility rates using this calculator.
What other costs should I consider beyond fuel?
Beyond fuel costs, consider: equipment purchase price and installation, annual maintenance (gas furnaces need annual service), expected equipment life (heat pumps 15-20 years, gas furnaces 15-25 years), and potential carbon pricing or rebates. The Inflation Reduction Act provides federal tax credits for heat pumps installed through 2032.
Official sources
- U.S. Energy Information Administration: Energy Conversion Calculators (EIA).
- U.S. Energy Information Administration: Natural Gas Monthly (residential prices).
- DOE Energy Saver: Heat Pump Systems.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.