Propane vs Electric Heat Calculator
Compare yearly heating cost for propane vs electric resistance heat using your home's BTU need and local prices.
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Typical 2,000 sq ft cold-climate home: ~60,000,000 BTU.
Modern: 90-96%. Older: 78-82%.
Resistance heat: 100%. Heat pump: 250-400% (use mini split calc instead).
Propane / yr
$2332
729 gal
Electric / yr
$2989
17585 kWh
Propane is cheaper by
$658/yr
What this means
At average national prices propane is usually cheaper per BTU than electric resistance heat, but the gap varies a lot by region. In areas with cheap hydro electricity ($0.10/kWh or less) electric can win.
Note this compares resistance electric heat. A modern cold-climate heat pump delivers 2.5-3.5× the heat per kWh, often beating both fuels — try the mini split calculator for that comparison.
How to lower this cost
- Lock in propane in summer when prices dip 20-30%.
- Tune your furnace yearly — a clogged burner can drop AFUE by 5-10 points.
- Consider a heat pump for the shoulder months, with propane as backup for deep cold.
- The cheapest BTU is the one you don't use — air seal and insulate first.
Next step
What if you switched to a mini split?
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Results are estimates based on typical conditions. Actual costs vary by climate, utility rates, equipment efficiency, and home characteristics. Use them as a starting point — for precise figures consult a qualified energy auditor or your utility company. Estimates are not a guarantee, and any work you do on your home is at your own risk — we are not liable for installation errors or property damage. Air sealing a home with gas, oil, propane, or wood-burning appliances can cause backdrafting and carbon monoxide risk — get a combustion safety test and keep CO alarms working. See our Disclaimer.