Gas vs Electric Heating Calculator
Compare gas and electric-resistance heating on the same annual useful-heat demand. The result depends on local variable energy prices and system efficiency—not a universal winner.
Quick answerAt the defaults—12,000 kWh of useful heat, gas at $0.07/kWh with 85% efficiency, and electricity at $0.17/kWh with 100% efficiency—gas costs about $988 per year and electric resistance costs $2,040, a modeled gas advantage of about $1,052. Your rates can reverse the result.
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Positive = gas is cheaper by this much per year. Negative = electric is cheaper.
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How it works
Gas cost = heat demand ÷ (gas efficiency ÷ 100) × gas price. Electric cost = heat demand ÷ (electric efficiency ÷ 100) × electricity price. Difference = electric cost − gas cost. Note: a heat pump changes this entirely — it delivers 3×+ heat per unit of electricity, so compare it separately with our heat pump calculator.
Gas-cost sensitivity at the default heat demand
Assumes 12,000 kWh of useful heat, 85% gas efficiency and electric resistance fixed at $2,040/year ($0.17/kWh).
| Gas price | Gas cost / year | Gas advantage vs electric |
|---|---|---|
| $0.04/kWh | $565 | $1,475 |
| $0.07/kWh | $988 | $1,052 |
| $0.10/kWh | $1,412 | $628 |
| $0.14/kWh | $1,976 | $64 |
| $0.17/kWh | $2,400 | −$360 |
Positive advantage means gas is cheaper in this operating-energy example. Fixed charges and ownership costs are excluded.
Worked example on equal useful heat
The default home needs 12,000 kWh of delivered heat. Gas purchased = 12,000 ÷ 0.85 = 14,117.6 kWh of fuel, so gas cost = 14,117.6 × $0.07 = $988.24. Electric resistance purchased = 12,000 ÷ 1.00 = 12,000 kWh, so electric cost = 12,000 × $0.17 = $2,040. The difference is $1,051.76 per year.
Comparing the same useful heat prevents the common mistake of multiplying both fuels by demand without adjusting for conversion efficiency.
Convert a U.S. natural-gas bill correctly
EIA defines one therm as 100,000 Btu and one kWh as 3,412 Btu, so one therm is approximately 29.3 kWh of fuel energy. Divide the variable dollars per therm by 29.3 to get dollars per kWh. A $1.80/therm variable rate is about $0.061/kWh.
Use the part of the bill that changes with consumption, including usage-based delivery charges. Fixed monthly customer charges usually remain even if use changes, so adding them to every kWh can distort an incremental heating comparison. Gas billed by volume also varies in heat content; use the bill's therm value when available.
Why a heat pump needs a separate comparison
This page models electric resistance heat, where one kWh of electricity produces roughly one kWh of heat at the point of use. A heat pump transfers heat and can deliver multiple units of heat per unit of electricity, so entering 100% does not represent it.
Use the heat-pump savings calculator with a seasonal COP. DOE explains that heat pumps transfer heat rather than generate it and can substantially reduce electricity use compared with resistance heating, but actual cost still depends on climate, system performance and local rates.
Costs this simple comparison does not include
The result excludes equipment purchase, installation, service, chimney or vent work, cooling value, fixed utility charges, future prices, carbon cost and comfort differences. It also assumes both systems meet the same heat demand.
Use it as an operating-cost screen. For a replacement decision, compare itemized quotes, expected maintenance, local incentives and a heat-loss-based system design. Do not treat one year of modeled fuel cost as total ownership cost.
Sources used for assumptions: U.S. Energy Information Administration — Energy conversion calculators; U.S. Department of Energy — Heat Pump Systems.
Frequently asked questions
Is gas always cheaper than electric heating?
No. Compare local variable prices after efficiency. The default favors gas over electric resistance, but different tariffs and efficiencies can reverse the result.
How do I convert dollars per therm to dollars per kWh?
Divide the variable price per therm by about 29.3. That follows from EIA factors of 100,000 Btu per therm and 3,412 Btu per kWh.
Should I include gas and electric fixed charges?
Usually not for incremental operating cost if you will keep both utility services anyway. Include a fixed charge only when the heating choice causes that account charge to appear or disappear.
What efficiency should I use for gas?
Use a realistic seasonal or billed-use efficiency for the whole system when possible. A nameplate combustion rating can omit cycling, standby and distribution losses.
Can I compare a heat pump here?
Not accurately. This calculator caps electric efficiency at 100% for resistance heat. Use the dedicated heat-pump savings calculator and enter a seasonal COP.
Why use annual heat demand instead of floor area?
Floor area alone misses climate, insulation, air leakage and thermostat settings. Past fuel use or a professional heat-loss calculation gives a stronger demand estimate.
Does the result include installation and maintenance?
No. It is annual variable energy cost only. Add equipment, installation, maintenance, lifespan, financing and incentives for a total-cost comparison.
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