Heating Cost Calculator

Please fill in the required fields with values greater than 0.
–heat needed (million BTU per year)
–fuel units per year
–yearly heating cost
–monthly cost (6-month season)

Rough estimate only. Actual cost depends on insulation, weather, thermostat settings and fuel prices.

How to use this calculator

Enter the home area, climate and heating type, then the price you pay per unit of fuel (kWh, therm or gallon). Press Calculate to see the yearly and monthly heating cost.

The formula

Heat needed = area × kBtu per sq ft per year
Fuel units = heat needed ÷ useful heat per unit (BTU)
Cost = fuel units × price per unit

Example: A 2,000 sq ft home in a moderate climate needs about 60 million BTU a year. A 95% gas furnace gives 95,000 BTU per therm, so it uses about 632 therms. At $1.50 per therm that costs about $947 a year, or $158 a month over 6 months.

Understanding your home heating cost estimate

The heating cost calculator estimates how much heat your home needs in a year and what that heat costs with your fuel. The yearly figure is useful for budgeting. The monthly figure spreads the cost over a typical six-month heating season, so expect higher bills in the coldest months and lower ones in spring and fall.

What changes the cost

  • Home size. More square feet means more heat needed, in direct proportion.
  • Climate. A cold-climate home needs about 1.5 times the heat of a moderate one in this tool.
  • System efficiency. An 80% furnace wastes more fuel than a 95% furnace. A heat pump delivers more heat than the electricity it uses.
  • Fuel price. Use the price per therm, kWh or gallon from your own bills. Include delivery charges if you can.

Two examples

A 2,000 square foot home in a moderate climate needs about 60 million BTU a year. With a 95% gas furnace and gas at $1.50 per therm, that is about $947 a year. The same home with an 80% furnace needs 750 therms, or about $1,125.

In a cold climate, the same home needs about 90 million BTU. The 95% gas furnace then burns about 947 therms, which is roughly $1,421 a year at the same price.

Tips and common mistakes

  • Do not compare fuels by price alone. Compare the cost of the heat you actually get after efficiency.
  • Use your full delivered price. A gas bill often adds fixed fees and delivery charges on top of the gas itself.
  • Older homes with little insulation may need more heat than the climate setting assumes. Newer, tight homes may need less.
  • Check your real usage. Add up last winter’s therms or kWh and compare them with the estimate.
  • Remember that fuel prices change. Rerun the numbers each fall with current rates.

Planning upgrades

Use the calculator to compare systems before you replace one. Run the same home with each heating type and your local prices, then weigh the yearly savings against the installed cost. Sealing air leaks and adding attic insulation are often cheaper first steps. A licensed HVAC contractor can do a load calculation to size new equipment correctly.

Frequently asked questions

How much does it cost to heat a house?
It depends on the size, climate, insulation and fuel. Use the calculator above for an estimate based on your own fuel price.
Which heating type is the cheapest to run?
Heat pumps are usually the cheapest to run per unit of heat. Natural gas is often cheaper than electric resistance heat, depending on local prices.
What is a therm?
A therm is 100,000 BTU of natural gas. Gas bills often show the therms used.
How can I cut my heating cost?
Add insulation, seal drafts, lower the thermostat when you are away and service your heating system every year.
What is COP?
The coefficient of performance shows how much heat a heat pump delivers per unit of electricity. A COP of 3 means 3 units of heat for 1 of electricity.
Is it cheaper to keep the heat at one temperature all day?
Usually not. Lowering the thermostat while you sleep or are away reduces heat loss, because a cooler house loses heat more slowly. The furnace does work harder to warm back up, but the total fuel used is typically lower. Heat pumps may need gentler setbacks, so check the maker’s advice or use a smart thermostat.
How much does it cost to heat a house with electric baseboard heat?
Electric resistance turns one kWh into about 3,412 BTU. A 2,000 square foot home that needs 60 million BTU would use about 17,600 kWh. At $0.15 per kWh, that is roughly $2,640 a year. A heat pump with a COP of 3 would use about one third as much electricity.
Does a programmable thermostat really save money?
It can, if you use the schedule. The savings come from lowering the temperature at night and while the house is empty. A thermostat that is left on hold at one setting saves nothing. Smart thermostats make scheduling easier, but the savings still depend on your settings and habits.