Heating fuel cost comparison by state

Every state, per million Btu of heat

The table uses each state's average residential electricity and gas prices for November 2025 to March 2026, and EIA's survey prices for propane and heating oil from the week of October 5, 2026 where the state is surveyed. The cheapest option in each row is in bold. It assumes new equipment: a 95% furnace for gas and propane, an 85% oil furnace, and a heat pump rated 8.5 HSPF2, which works out to a seasonal efficiency of about 2.5 units of heat per unit of electricity. Change any of those in the calculator above.

What the numbers say

Electric resistance heat is the most expensive option almost everywhere. At the U.S. average it costs about 3.4 times as much as gas per unit of heat, because each kWh becomes exactly 3,412 Btu and electricity costs far more per Btu than gas. Baseboard heat and space heaters make sense for a room, not for a house.

Heat pumps close most of that gap because they move heat from outside rather than generating it. In the states where electricity is cheap relative to gas, such as Arizona, Arkansas, Georgia, Hawaii, a heat pump at these assumptions is already cheaper to run than a new gas furnace. Where gas is cheap and electricity is not, the furnace still wins on running cost.

Against propane the case is stronger. Of the 38 states with a propane price this week, a heat pump costs less per unit of heat than a propane furnace in 37. For homes without a gas line, that comparison is usually the one that matters.

Limits of a per-Btu comparison

Running cost is only part of the decision. The comparison leaves out what the equipment costs to buy and install, any fixed monthly charge for a gas connection you would keep or cancel, and maintenance. It also uses a heat pump's rated seasonal efficiency. HSPF2 is measured for a moderate reference climate; in a much colder place a heat pump works harder in the coldest weeks, its seasonal efficiency is lower than the rating suggests, and some models hand over to backup resistance heat in deep cold. Cold-climate models hold their efficiency better, and their published ratings at low temperatures are worth asking for.

For a full winter worked out from your own gas use, the heat pump vs. gas furnace calculator starts from last winter's bills. The fuel prices behind this page are on natural gas prices by state and heating oil and propane prices.