Yearly cost to heat 2,500 sq ft, by fuel
A moderate climate and average insulation, so the house needs about 75.0 million BTU of heat a year. The prices are examples, the calculator's starting values, not a quote for your area: electricity $0.17 a kWh, natural gas $1.45 a therm, propane $2.80 a gallon, heating oil $3.90 a gallon, firewood $300 a cord and pellets $350 a ton. Type your own prices into the calculator above and every figure updates.
| Heating | Example price | Cost a year | Per million BTU of heat |
|---|---|---|---|
| Natural gas furnace | $1.45 a therm | $1,145 | $15.26 |
| Wood stove | $300 a cord | $1,339 | $17.86 |
| Heat pump | $0.17 a kWh | $1,495 | $19.93 |
| Pellet stove | $350 a ton | $2,001 | $26.68 |
| Propane furnace | $2.80 a gallon | $2,416 | $32.21 |
| Heating oil furnace | $3.90 a gallon | $2,485 | $33.13 |
| Electric baseboard or furnace | $0.17 a kWh | $3,737 | $49.82 |
The gas and propane furnaces are 95% efficient, the oil furnace 85%, the wood stove 70%, the pellet stove 80% and the heat pump delivers 2.5 units of heat for each unit of electricity (COP 2.5). Fuel only: equipment, installation and upkeep are not counted.
By climate
The same 2,500 sq ft house with average insulation, at the same example prices. Pick the row that matches your winters. The heat pump column keeps a COP of 2.5 in every row; in cold winters many average nearer 2.0, which puts the Cold row at about $2,803 and the Very cold row at about $3,737 instead. The wood and pellet columns assume one stove heats the whole house, which it seldom does in practice.
| Climate | Million BTU a year | Gas | Heat pump | Propane | Oil | Electric | Wood | Pellets |
|---|---|---|---|---|---|---|---|---|
| Mild (15 kBTU per sq ft) | 37.5 | $572 | $747 | $1,208 | $1,242 | $1,868 | $670 | $1,000 |
| Moderate (30 kBTU per sq ft) | 75.0 | $1,145 | $1,495 | $2,416 | $2,485 | $3,737 | $1,339 | $2,001 |
| Cold (45 kBTU per sq ft) | 112.5 | $1,717 | $2,242 | $3,624 | $3,727 | $5,605 | $2,009 | $3,001 |
| Very cold (60 kBTU per sq ft) | 150.0 | $2,289 | $2,989 | $4,832 | $4,969 | $7,474 | $2,679 | $4,002 |
By insulation
A moderate climate. A drafty house needs about a quarter more heat than an average one, and a tight one about a fifth less.
| Insulation | Million BTU a year | Gas | Heat pump | Propane | Oil | Electric | Wood | Pellets |
|---|---|---|---|---|---|---|---|---|
| Well insulated | 60.0 | $916 | $1,196 | $1,933 | $1,988 | $2,989 | $1,071 | $1,601 |
| Average | 75.0 | $1,145 | $1,495 | $2,416 | $2,485 | $3,737 | $1,339 | $2,001 |
| Poor or drafty | 93.8 | $1,431 | $1,868 | $3,020 | $3,106 | $4,671 | $1,674 | $2,501 |
Heating a larger house with wood or pellets
Heating all 2,500 sq ft with a wood stove in a moderate climate takes about 4.5 cords a year, $1,339 at $300 a cord. Pellets take about 5.7 tons, $2,001 at $350 a ton.
Both come out cheap on paper, but one stove seldom reaches every room of a house this size, so most people use it for the main living area and let the furnace cover the rest. If you cut your own wood, enter what the saw, the fuel and your time are worth as the cord price in the calculator above; a price of 0 leaves wood out of the comparison. For the stack itself see firewood for a 2,500 sq ft house or pellets for a 2,500 sq ft house.
These are planning estimates. The heat a house needs is a rule-of-thumb figure per square foot for the climate, so trust the comparison between fuels more than the exact dollars, and check last winter's bills if you have them.
Want to change anything else? The calculator above is the full Heating Cost Comparison Calculator: edit any number and the results update instantly.
Tools & materials for this project
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Frequently asked questions
How much does it cost to heat a 2,500 square foot house?
In a moderate climate with average insulation, about $1,145 a year with natural gas at $1.45 a therm, $1,495 with a heat pump at $0.17 a kWh, $2,416 with propane at $2.80 a gallon and $3,737 with electric baseboards. These are example prices; use your own.
How much does it cost to heat 2,500 sq ft with wood?
About $1,339 a year for 4.5 cords at $300 a cord in a moderate climate, with wood as the only heat.
How much does it cost to heat 2,500 sq ft with propane?
About $2,416 a year at $2.80 a gallon in a moderate climate with a 95% furnace, and $3,624 in a cold climate.
Related sizes and guides
Estimates only. Results assume standard materials and simple shapes. Supplier products vary, and the final call on quantity, structure and safety is yours. Check your local code and your supplier's guidance before ordering.