Furnace Running Cost Calculator

Estimate what your furnace costs to run from its heat output, AFUE efficiency and your own fuel price — natural gas, propane or heating oil.

Estimate: results come from the values you enter and standard reference constants. Get real written quotes and check your utility bill before you decide.
Gas & CO safety: Gas appliances must be installed and serviced by a licensed professional. Improper work risks fire and carbon-monoxide poisoning — install CO alarms. This tool is for planning estimates only.

Calculator

BTU
Total BTU of heat you want delivered (e.g. 60,000 BTU/h × 8 h = 480,000 BTU).
0–1
AFUE as a fraction: 80% = 0.80, 95% = 0.95.
$
Price per therm (gas) or per gallon (propane / oil), from your bill.
Fuel cost$7.58
Fuel used5.05 therms
Efficiency (AFUE)95%
Your rate$1.50 /therm

Delivering 480,000 BTU with a 95% furnace burns 5.05 therms ≈ $7.58 at $1.50 /therm (your rate — no tariff is stored).

A furnace burns fuel to make heat, but not all of the fuel’s energy reaches your rooms — the rest goes up the flue. The fraction that becomes useful heat is the AFUE (Annual Fuel Utilization Efficiency). Running cost is the heat you need, divided by that efficiency to get the fuel actually burned, priced at your own rate. The only wrinkle is that different fuels pack different energy per unit, so the tool switches the denominator when you pick gas, propane or oil.

Enter the total BTU delivered (capacity × hours, or read your heating load), the AFUE as a decimal, and your price per unit. Natural gas is priced per therm (100,000 BTU), while propane and heating oil are priced per gallon (91,500 and 138,500 BTU respectively). The stored numbers are stable physical energy contents — the price is always yours.

Formula

Fuel burned and its cost:

  • fuel units = heat delivered (BTU) ÷ (AFUE × energy content per unit)
  • cost = fuel units × your price per unit

Energy content per unit (stable constants): natural gas 100,000 BTU/therm, propane 91,500 BTU/gallon, heating oil 138,500 BTU/gallon. Dividing by AFUE accounts for the flue losses — a 95% furnace burns about 16% less fuel than an 80% one for the same delivered heat.

Worked example

Delivering 480,000 BTU with a 95% AFUE gas furnace:

  • therms = 480,000 ÷ (0.95 × 100,000) = 5.05 therms
  • cost = 5.05 × $1.50 = $7.58

Switch the same job to propane at $2.50/gallon: gallons = 480,000 ÷ (0.95 × 91,500) = 5.52 gal, costing $13.80 — propane usually costs more per delivered BTU than pipeline gas. An 80% furnace instead of 95% would burn 6.0 therms for the same heat, about 19% more fuel.

Comparing fuels and staying safe

To decide whether gas is actually your cheapest heat, compare it against a heat pump and other fuels on delivered $/MMBTU using electric vs gas heat and $/MMBTU by fuel. To see the payback of a higher-AFUE furnace, use AFUE upgrade savings. For the furnace size behind the output figure, see furnace size.

This is a planning estimate: real fuel use varies with weather, distribution losses, cycling and how tight the house is. Read your meter over a known period to calibrate. Whatever the numbers say, gas work belongs to a licensed pro — a cracked heat exchanger or bad venting is a carbon-monoxide risk, so keep CO alarms installed.

One subtlety worth understanding: this tool works from the heat delivered, not the fuel input, and the AFUE bridges the two. A furnace with a 100,000 BTU/h input rating and 95% AFUE delivers about 95,000 BTU/h of usable heat, so if you read an input rating off the nameplate, multiply by AFUE before entering the delivered figure — otherwise you would double-count the efficiency and overstate the fuel. When in doubt, enter the delivered heat you actually need and let the tool add the flue losses back for you.

Reference table

Fuel burned to deliver 480,000 BTU at 95% AFUE (price your own units in the tool):

FuelEnergy contentUnits burnedSample priceCost
Natural gas100,000 BTU/therm5.05 therms$1.50/therm$7.58
Propane91,500 BTU/gal5.52 gal$2.50/gal$13.81
Heating oil138,500 BTU/gal3.65 gal$3.00/gal$10.94

Frequently asked questions

How much does it cost to run a gas furnace?
Delivering 480,000 BTU with a 95% AFUE furnace burns about 5.05 therms; at $1.50/therm that is roughly $7.58. Scale it to your daily heat load and your own therm price for a seasonal figure.
What is AFUE and how do I enter it?
AFUE is the share of fuel energy that becomes useful heat over a season — an 80% furnace wastes 20% up the flue. Enter it as a decimal: 0.80 for 80%, 0.95 for 95%. Higher AFUE burns less fuel for the same heat.
Which fuel is cheapest to heat with?
It depends entirely on local prices. Per delivered BTU, pipeline natural gas is usually cheapest, propane and oil more expensive, and a heat pump can beat all of them where electricity is cheap. Compare on $/MMBTU rather than headline price per unit.
Why does propane cost more here than gas?
Propane holds less energy per gallon (91,500 BTU) than a therm of gas (100,000 BTU) and typically sells at a higher price per unit of energy, so the same delivered heat costs more. The tool switches the energy content automatically when you pick the fuel.
Is this a bid for my heating bill?
No — it is a planning estimate from your inputs and stable energy constants. Real use varies with weather, house tightness and cycling. Read your meter to calibrate, and have gas equipment installed and serviced by a licensed professional.
How do I get the total BTU to enter?
Multiply the furnace output rate by the hours it runs: a 60,000 BTU/h furnace running 8 hours delivers 480,000 BTU. If you know your seasonal heating load in MMBTU, multiply by 1,000,000 to get BTU. The tool then divides by AFUE and the fuel’s energy content to find the fuel actually burned, so the output figure should be the heat delivered into the house, not the fuel input.
Where do the energy contents come from?
They are stable physical constants: 100,000 BTU per therm of natural gas, 91,500 BTU per gallon of propane and 138,500 BTU per gallon of heating oil. These do not change over time, which is why the page needs no maintenance — only your price per unit, which you enter, ever moves.