How do I compare energy costs between different fuel types?

Convert all fuels to cost per useful BTU delivered. Account for equipment efficiency (e.g., 95% for gas furnace, 300% for heat pump, 100% for electric resistance). The calculator handles these conversions: for example, natural gas at $1.50/therm with 95% efficiency costs $1.58 per 100,000 useful BTU.

What is AFUE and why does it matter for cost comparison?

AFUE (Annual Fuel Utilization Efficiency) shows what percentage of fuel energy becomes useful heat. A 95% AFUE furnace delivers 95,000 BTU of heat per 100,000 BTU of fuel burned. Higher AFUE means lower operating costs. Modern gas furnaces range from 80-98% AFUE.

How do heat pumps achieve over 100% efficiency?

Heat pumps move heat rather than generate it, measuring efficiency as COP (Coefficient of Performance) or HSPF. A COP of 3.0 means 300% efficiency - 3 BTU of heat moved per BTU of electricity used. In mild climates, heat pumps can be 2-4x cheaper than resistance heating.

What factors affect the true cost of heating fuel?

Beyond fuel price: equipment efficiency, maintenance costs, equipment lifespan, installation costs, and energy price volatility. Electricity prices are more stable than gas/oil. The calculator includes lifecycle cost analysis considering equipment replacement and maintenance.

When is electric heating more economical than gas?

Electric heat pumps beat gas when electricity costs less than 3x the gas price per BTU. With a COP of 3.0, if gas costs $1/therm and electricity is under $0.10/kWh, heat pumps win. Also consider: no combustion safety risks, lower maintenance, and potential solar offset.

How do I factor in equipment costs for a fair comparison?

Calculate Total Cost of Ownership over the equipment lifespan (typically 15-20 years for HVAC). Include purchase price, installation, annual fuel costs, maintenance, and efficiency degradation. The calculator provides NPV analysis to compare options with different upfront costs.

Energy Cost Comparison Calculator

ASHRAE 90.1NPV AnalysisCO2 Tracking

ASHRAE 90.1NPV Analysis

HVAC Lifecycle Cost Comparison

Compare 2-5 heating/cooling systems to find the best long-term value

HVAC Systems to Compare

System Name

System Type

Heating Capacity

BTU/hr

AFUE

Annual Fuel Utilization Efficiency (0.8-1.0)

Equipment Cost

USD

Installation Cost

USD

Annual Maintenance

USD/year

System Name

System Type

Heating Capacity

BTU/hr

Cooling Capacity

BTU/hr

SEER

Seasonal Energy Efficiency Ratio

HSPF

Heating Seasonal Performance Factor

Equipment Cost

USD

Installation Cost

USD

Annual Maintenance

USD/year

Climate & Usage

Climate Zone

Determines typical heating and cooling load

Analysis Period (years)

Typically 15-25 years for HVAC equipment

Annual Heating Hours

Hours per year heating is needed

Annual Cooling Hours

Hours per year cooling is needed

Energy Prices

Electricity Rate

$/kWh

Natural Gas Rate

$/therm

Propane Rate

$/gallon

Heating Oil Rate

$/gallon

Economic Parameters

Discount Rate

For NPV calculation (typically 3-5%)

Energy Price Escalation

Annual energy price increase rate

Frequently Asked Questions

Common questions about this calculator

Interactive Cost Comparison

Explore how different HVAC systems compare over time with this interactive visualizer

Energy Cost Comparison Calculator

HVAC Systems to Compare

System 1(Natural Gas Furnace)

System 2(Air Source Heat Pump)

Climate & Usage

Energy Prices

Economic Parameters

Frequently Asked Questions

01How do I compare energy costs between different fuel types?

02What is AFUE and why does it matter for cost comparison?

03How do heat pumps achieve over 100% efficiency?

04What factors affect the true cost of heating fuel?

05When is electric heating more economical than gas?

06How do I factor in equipment costs for a fair comparison?