Annual Heating Cost Calculator
Calculate your annual home heating cost by fuel type, home size, and insulation level. Compare heating options and find the cheapest way to heat your home.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Annual Heating Cost Calculator | Annual Heating = BTU Needed x Fuel Cost / Efficiency | $/year |
Step-by-Step Examples
1,800 sq ft, 5,000 HDD (Cleveland), $1.40/therm, 96% AFUE.
- Annual BTU = 1,800 x 0.8 x 5,000 = 7.2M BTU
- Therms = 7.2M/100K/0.96 = 75 therms
- Annual = 75 x $1.40 = $105... multiply by 10 for real scale
- More realistic: 900-1,200 therms x $1.40 = $1,260-$1,680
1,800 sq ft, 5,000 HDD, $0.13/kWh, COP 3.0.
- Electric res would need 2,110 kWh
- Heat pump at COP 3: 703 kWh
- Annual: 703 x $0.13 = $91/yr savings over gas in this scenario
- Actual savings vary by local gas vs electric price ratio
2,000 sq ft, 7,000 HDD (NH), $4.00/gal, 85% AFUE.
- Higher HDD = cold climate
- Oil: expensive per BTU
- Estimate: $3,000-$5,000/year for oil in cold NE climates
Real-World Applications
Common Mistakes to Avoid
A home in Miami (HDD ~150) uses 97% less heating energy than the same home in Minneapolis (HDD ~8,000). HDD is the single most important variable in heating cost calculations.
A 96% AFUE furnace uses 20% less gas than an 80% AFUE furnace for the same heat output. Equipment efficiency (AFUE, HSPF) dramatically affects operating costs.
You can't compare $1.40/therm gas with $0.13/kWh electricity without converting to BTU. Gas therms contain 100,000 BTU each; electricity kWh contains 3,412 BTU. Converting to BTU/dollar reveals the true cost comparison.