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Electric vs Gas Cost Calculator

Built by Kevin Glover · @gloverbuilds · Verified formula

Compare electric vs gas appliance costs. Water heater, stove, dryer, and heating. Free comparison.

📅 Updated April 2026 ✅ Formula verified 📖 4 min read 🆓 Free · No sign-up

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Comparing Energy Costs

To compare electric vs gas, convert to the same unit. 1 therm of gas = 29.3 kWh of electricity. If electricity costs $0.15/kWh and gas costs $1.20/therm: electric equivalent of 1 therm = $4.40 vs $1.20 for gas. Gas is typically 2-4x cheaper per BTU for heating. However, electric heat pumps are 200-300% efficient (extracting heat from air), making them competitive with gas even at higher per-unit costs.

When Electric Wins

Electric is cheaper when: your electric rate is below $0.10/kWh, you use a heat pump (not resistance heat), you have solar panels, or gas prices are high. Electric is also better for air quality (no combustion gases indoors) and avoids the safety risks of gas leaks. The trend is toward electrification — new heat pumps outperform gas furnaces in all but the coldest climates.

⚡ CalcWolf Insight

The Inflation Reduction Act offers $2,000 tax credits for heat pump installation and up to $8,000 in rebates for low-income households — potentially making the switch cost-neutral in year one.

Frequently asked questions

Is gas or electric cheaper for heating?▾

Gas furnaces are typically cheaper to operate than electric resistance heaters. But heat pumps change the equation — they produce 2-3 BTU of heat per 1 BTU of electricity consumed, making them cost-competitive with gas even at higher electric rates. In moderate climates, heat pumps are now the cheapest heating option.

Should I switch from gas to electric?▾

Consider it if: you need to replace your furnace anyway, you live in a moderate climate (heat pumps lose efficiency below 15F), you have or plan to install solar, or your gas rates are rising. The upfront cost is higher but operating costs are often lower. Many states offer $2,000-8,000 in heat pump rebates.

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Kevin Glover · @gloverbuilds

Founder, CalcWolf · GLVTS · Blickr

All formulas sourced from primary references — IRS publications, peer-reviewed research, and official standards. Results are tested against independent reference calculators before publishing. Rates and brackets updated when official sources change. Editorial policy →