Quick answer
At the latest US average prices from EIA, a 95% gas furnace delivers a million Btu of heat for about $15.58. A heat pump rated 7.8 HSPF2 comes next at $23.28, then propane at $32.57, heating oil at $49.13 and electric baseboard at $53.22.
Cost of the same heat from each system
Fuels are sold in different units, so the fair comparison is the cost of one million Btu of heat delivered into the house. These figures use EIA's average prices and ENERGY STAR minimum efficiency ratings. An older furnace is often rated lower, so use the rating on yours:
| System | Average price | Efficiency | Per million Btu |
|---|---|---|---|
| Natural gas furnace | $1.48 per therm | 95% | $15.58 |
| Electric heat pump | 18.16¢ per kWh | 7.8 HSPF2 (about 2.29×) | $23.28 |
| Propane furnace | $2.83 per gallon | 95% | $32.57 |
| Heating oil furnace | $5.92 per gallon | 87% | $49.13 |
| Electric baseboard or furnace | 18.16¢ per kWh | 100% | $53.22 |
The prices are EIA's latest US residential averages: natural gas for all of 2025, electricity for August 2026, and propane and heating oil for the week of November 9, 2026 (oil and propane before taxes). They cover different periods, and the price you pay in January can differ, so use your own winter bills when you can.
What a whole winter costs
Take a house that burned 700 therms of gas last winter in a 95% furnace. That delivered 66.5 million Btu of heat. The same heat from each system would cost:
| System | Winter cost |
|---|---|
| Natural gas furnace | $1,036 |
| Electric heat pump | $1,548 |
| Propane furnace | $2,166 |
| Heating oil furnace | $3,267 |
| Electric baseboard or furnace | $3,539 |
To get your own number, add up the therms, gallons or kWh you used for heat from October to March.
Why heating oil costs so much right now
EIA's weekly survey put residential heating oil at $5.92 a gallon for the week of November 9, 2026, $2.19 more than a year earlier. Propane was $2.83, up about 38 cents. A gallon of oil holds more heat than a gallon of propane (138,500 Btu against 91,452), but not enough to make up the price gap this year.
How to compare with your own prices
- Find your price per unit on a recent bill: dollars per therm of gas, per gallon of propane or oil, or cents per kWh. Add the energy and delivery charges, leave out the fixed monthly fee, and divide by the units used.
- Find your system's rating on the label on the unit: AFUE for a furnace, HSPF2 for a heat pump.
- Enter both in the heating cost calculator. Add last winter's fuel use to see what a season would cost with each system.
Where a heat pump fits
A heat pump moves heat from outdoors instead of making it, so it delivers more heat than the electricity it uses. A 7.8 HSPF2 model is rated at about 2.29 units of heat per unit of electricity, averaged over a standard test season. That is why it beats electric baseboard by a wide margin at the same power price. In a colder climate you'll get less. ENERGY STAR's separate cold-climate label (8.1 HSPF2 or higher for ducted systems) requires a COP of at least 1.75 even at 5°F. Where electricity is expensive and gas is cheap, gas can still win, so run your own numbers before you switch.
Space heaters cost the same as baseboard heat
A plug-in space heater is electric resistance heat, so each unit of heat costs the same as baseboard heat: $53.22 per million Btu at the average power price. A standard 1,500 W heater costs about $0.27 an hour at full power. Use the space heater calculator to size one for a room.
Prices move during the winter and differ a lot from state to state. The averages here are a starting point; your own bills give the real answer.
Frequently asked questions
Is it cheaper to heat with gas or electric?
At the latest EIA average prices, gas is cheapest: about $15.58 per million Btu from a 95% furnace, against $23.28 for a 7.8 HSPF2 heat pump and $53.22 for electric baseboard. Local prices can change the order.
Is heating oil more expensive than propane this winter?
Yes, at EIA's mid-November 2026 averages. Oil at $5.92 a gallon in an 87% furnace costs about $49.13 per million Btu, and propane at $2.83 in a 95% furnace about $32.57.
How do I compare heating costs with my own bills?
Divide your bill by the units used to get your price per therm, gallon or kWh, then enter it with your system's AFUE or HSPF2 rating in the heating cost calculator.
How much does it cost to run a space heater?
A 1,500 W heater costs about $0.27 an hour at full power at the US average of 18.16¢ per kWh (August 2026). Multiply the heater's kilowatts by your own price per kWh for your cost.
Calculators for this
Heating Cost Comparison
Compare the cost of heat from natural gas, propane, heating oil, electric heat and a heat pump, per million Btu and for a whole winter, with your own prices.
Space Heater Size
What size space heater do you need?
Insulation
Get batt bags for walls, floors and attics, or bags of blown-in fiberglass or cellulose to reach your target R-value, by attic size.
Published 2026-10-29, last reviewed 2026-11-13. Sources: EIA, Units and calculators explained (heat content of fuels); EIA, Heating Oil and Propane Update (weekly prices); EIA, Natural Gas Prices (residential, annual); EIA, Electric Power Monthly, Table 5.6.A; ENERGY STAR, furnace and heat pump key product criteria. See how we calculate.