🔥 Gas vs Electric Heating Cost Calculator

Comparing gas boiler and electric heating (electric resistance or heat pump) costs requires looking beyond the unit price to efficiency. Gas boilers lose some heat up the flue, so efficiency typically runs 85-95%, giving Annual gas cost = (Energy need ÷ Efficiency) × Gas price. Electric heating efficiency (COP) is close to 1 for resistive heaters, but heat pumps generate more heat than the electricity they consume, with COP typically 2.5-4.5, giving Annual electric cost = (Energy need ÷ COP) × Electric price. For example, with an annual need of 12,000 kWh, a gas price of $0.09/kWh at 90% efficiency costs 12,000 ÷ 0.9 × $0.09 = $1,200. Electric at $0.15/kWh with resistive heating (COP 1) costs 12,000 ÷ 1 × $0.15 = $1,800 — gas wins here — but the same electricity with a COP 3.5 heat pump costs only 12,000 ÷ 3.5 × $0.15 = about $514, flipping the comparison entirely in electricity's favor.

In many regions electricity costs more per kWh than gas, leading to the common assumption that "electric heat is always more expensive." That assumption only holds for resistive electric heat. A heat pump doesn't convert electricity directly into heat — it moves existing heat from outside air (or ground) into your home, similar to a refrigerator in reverse, so it delivers far more heat energy than the electricity it consumes. A COP of 3 means 1 kWh of electricity delivers the equivalent of 3 kWh of heat, effectively dividing your real cost per unit of heat by 3. Heat pump COP does drop as outdoor temperature falls (it can fall below 2 in severe cold), so for cold climates use a manufacturer-published seasonal average (like HSPF-derived COP) rather than the peak-condition number for a realistic comparison. Plugging your local climate and equipment specs into this calculator gives a far more accurate picture than comparing raw per-unit prices alone.