Compare natural gas, propane, heating oil, electricity, heat pumps, cordwood and pellets by the cost of a million Btu of delivered heat, using EIA heat contents and dated EIA prices
Updated October 2026
Fuels are sold in different units: gallons of oil and propane, therms or cubic feet of gas, kilowatthours of electricity, and cords or tons of wood. EIA’s method converts each price to dollars per million British thermal units (MMBtu): (price per unit ÷ heat content per unit) × 1,000,000. This calculator then divides by the appliance’s efficiency, because a furnace that is 90% efficient delivers only 0.9 MMBtu of heat to the house for every MMBtu of fuel it burns.
Worked example, natural gas. EIA’s 2025 U.S. average residential price was $15.34 per Mcf (1,000 cubic feet). In 2025, gas delivered to end users averaged about 1,037 Btu per cubic foot, so an Mcf holds 1.037 MMBtu. EIA’s own conversion gives $15.34 ÷ 1.037 = $14.79 per MMBtu of fuel, or $15.34 ÷ 10.37 = $1.48 per therm. Through a 90% AFUE furnace that becomes $16.44 per MMBtu of heat delivered.
Worked example, heat pump. One kWh is 3,412 Btu, so at 18.31¢ per kWh electricity costs $0.1831 ÷ 3,412 × 1,000,000 = $53.66 per MMBtu. Baseboard heat turns all of it into heat at that price. A heat pump with a seasonal COP of 3 moves three units of heat per unit of electricity, so it delivers heat for $17.89.
| Fuel | Unit | Heat content | Source |
|---|---|---|---|
| Natural gas | cubic foot / therm | 1,037 Btu (2025 average) / 100,000 Btu | EIA |
| Propane | gallon | 91,452 Btu | EIA |
| Heating oil | gallon | 138,500 Btu | EIA |
| Electricity | kilowatthour | 3,412 Btu | EIA |
| Wood | cord | 20,000,000 Btu | EIA |
| Wood pellets | ton | about 16,500,000 Btu (5 to 10% moisture) | New Hampshire Department of Energy |
EIA’s Btu page lists 1,036 Btu per cubic foot for gas, and its newer price-conversion answer uses 1,037, the 2025 average. Some utilities print the heat content on the bill, and the therm price on a bill already includes it. Wood varies the most: a cord of wet or light wood holds far less than 20 million Btu, so treat cordwood results as rough.
| Equipment | Rating | Typical range (DOE, EPA) | Default here |
|---|---|---|---|
| Gas, propane or oil furnace or boiler | AFUE | 56 to 70% old; 80 to 83% mid; 90 to 98.5% high efficiency | 90% |
| Electric baseboard or electric furnace | Efficiency | 95 to 100% | 100% |
| Air-source heat pump | COP (or HSPF) | COP 2 to 4 | 3.0 |
| Wood stove | Efficiency (HHV) | 65 to 75% advanced non-catalytic; up to 83% catalytic | 70% |
| Pellet stove | Efficiency | 70 to 83% for EPA-certified stoves | 75% |
Heat pump labels give HSPF, which is Btu of heat per watt-hour over a season. Dividing HSPF by 3.412 gives the seasonal COP, so an HSPF of 10.2 is a COP of about 3.0. A heat pump’s COP drops as the outdoor temperature falls, so in a very cold climate the seasonal figure is lower than in a mild one. Stove makers sometimes advertise combustion efficiency, and EPA warns that overall efficiency can be 10 to 20% lower.
| Fuel | EIA price used | Fuel cost per MMBtu | Efficiency | Delivered heat per MMBtu |
|---|---|---|---|---|
| Natural gas | $15.34 per Mcf (2025 average) | $14.79 | 90% AFUE | $16.44 |
| Heat pump | 18.31¢ per kWh (July 2026) | $53.66 | COP 3.0 | $17.89 |
| Propane | $2.689 per gallon (Oct 19, 2026) | $29.40 | 90% AFUE | $32.67 |
| Heating oil | $6.190 per gallon (Oct 19, 2026) | $44.69 | 90% AFUE | $49.66 |
| Electric resistance | 18.31¢ per kWh (July 2026) | $53.66 | 100% | $53.66 |
At these averages propane costs about 2.0 times as much as natural gas per unit of heat, and oil about 2.8 times as much as a COP-3 heat pump. A heat pump matches gas at about 16.82¢ per kWh. EIA’s weekly heating oil and propane prices exclude taxes, so your delivered price will run a little higher.
EIA collects heating oil and propane prices weekly from October through March. Oil and propane are from the week of October 19, 2026, and electricity is the July 2026 residential average. All are per MMBtu of delivered heat at 90% AFUE for oil and propane.
| State | Oil $/gal | Oil delivered | Propane $/gal | Propane delivered | Electricity | Baseboard | Heat pump (COP 3) |
|---|---|---|---|---|---|---|---|
| Maine | $6.026 | $48.34 | $3.709 | $45.06 | 32.41¢ | $94.99 | $31.66 |
| Massachusetts | $6.115 | $49.06 | $3.659 | $44.46 | 30.49¢ | $89.36 | $29.79 |
| New York | $6.417 | $51.48 | $3.727 | $45.28 | 29.90¢ | $87.63 | $29.21 |
| Pennsylvania | $6.066 | $48.66 | $3.163 | $38.43 | 21.72¢ | $63.66 | $21.22 |
| Michigan | $5.808 | $46.59 | $2.434 | $29.57 | 23.05¢ | $67.56 | $22.52 |
| Minnesota | $5.916 | $47.46 | $2.014 | $24.47 | 17.45¢ | $51.14 | $17.05 |
| Wisconsin | $5.786 | $46.42 | $1.940 | $23.57 | 19.06¢ | $55.86 | $18.62 |
| North Carolina | $5.828 | $46.75 | $3.612 | $43.88 | 15.16¢ | $44.43 | $14.81 |
| Comparison | Result per MMBtu delivered |
|---|---|
| Propane at $2.80 a gallon vs natural gas at $1.40 a therm, both 90% AFUE | Gas $15.56 vs propane $34.02; propane matches gas only at about $1.28 a gallon |
| Oil furnace vs heat pump at national prices | Oil $49.66 vs heat pump $17.89; the heat pump stays cheaper up to about 50.83¢ per kWh |
| Electric baseboard vs oil at national prices | Baseboard $53.66 vs oil $49.66; baseboard matches oil at about 16.94¢ per kWh |
| Pellet stove (75%) vs oil furnace at national prices | Pellets beat oil below about $614.53 a ton |
| Pellet stove (75%) vs natural gas at the 2025 average | Pellets beat gas below about $203.40 a ton |
| Wood stove (70%) vs oil furnace at national prices | Cordwood beats oil below about $695.23 a cord |
Break-even prices are the useful number when you shop. Multiply the competing fuel’s delivered cost by your fuel’s heat content and efficiency, and you get the most you can pay for your fuel before it costs more.
A lower cost per MMBtu is only half the decision. To estimate yearly savings, work out how much heat your home used last winter. Take the fuel you bought, multiply by its heat content, then multiply by your system’s efficiency. For example, 800 gallons of oil × 138,500 Btu × 0.90 is 99.7 MMBtu delivered. Multiply that by the difference in delivered cost between two fuels, then divide the installed cost of the new system by that yearly saving to get a simple payback in years. Include rebates and tax credits, any new gas line or tank, and the cost of keeping a backup system.
It prices energy only. It does not include equipment, installation, maintenance, delivery fees, fixed monthly charges, or the cost of a chimney, tank or gas line. It also leaves out fuel availability, emissions and comfort. It does not size a system or estimate your heating load. For a decision on new equipment, get a load calculation and written quotes from licensed contractors, and check current rebates and incentives with your utility.