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Natural Gas vs Propane Heating Cost Calculator — 2026 $/MMBTU

See whether natural gas or propane is cheaper to heat your home — compare cost per MMBTU, yearly running cost, and the lifetime total, and learn why a gas line at the curb usually settles it.

Natural Gas wins

$16,553 cheaper

Natural Gas

$16,211

Propane

$32,763

Break-even

Year 1

Heating Need

MMBTU
20 MMBTU
120 MMBTU
yr
5 yr
25 yr

Fuel Rates ($/MMBTU)

$/MMBTU
8 $/MMBTU30 $/MMBTU
$/MMBTU
15 $/MMBTU55 $/MMBTU

Efficiency

%
80 %99 %

Up-front Cost

$
0 $6000 $
$
500 $4000 $

Natural Gas wins

Saves $16,553 over 15 years · breaks even in year 1

Best
Natural Gas

$16,211

Up-front$2,000
Per year$947
Propane

$32,763

Up-front$1,500
Per year$2,084

Total cost over 15 years

Natural Gas$16,211
Propane$32,763

Cumulative cost over time

Cumulative cost over time — crossover at year 1

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Example Calculations

1Gas main available, average rates

Inputs

Annual heating need60 MMBTU
Time horizon15 years
Fuel rates$15/MMBTU gas · $33/MMBTU propane
Furnace AFUE95%
Up-front costGas hookup $2,000 · Propane $1,500

Result

Cheaper optionNatural gas — saves $16,553 over 15 yrs
Natural gas 15-year total$16,211
Propane 15-year total$32,763
Break-evenYear 1 (immediate)

Natural gas runs ~$947/year versus ~$2,084 for propane — about half the cost per BTU. The slightly higher $2,000 gas hookup is recovered inside the first year, then gas saves ~$1,137 every year after. When a main is at the curb, gas is the clear winner.

2Cheap bulk propane ($25/MMBTU)

Inputs

Annual heating need60 MMBTU
Time horizon15 years
Fuel rates$15/MMBTU gas · $25/MMBTU propane
Furnace AFUE95%
Up-front costGas hookup $2,000 · Propane $1,500

Result

Cheaper optionNatural gas — saves $8,974 over 15 yrs
Natural gas 15-year total$16,211
Propane 15-year total$25,184
Break-evenYear 1

Even aggressively cheap bulk propane at $25/MMBTU still costs more per BTU than $15 piped gas, so gas wins by ~$8,974 over 15 years. Propane only pulls ahead when its energy price drops below the gas rate — rare wherever a gas main exists.

3No gas line — costly tie-in, remote lot

Inputs

Annual heating need60 MMBTU
Time horizon15 years
Fuel rates$28/MMBTU gas · $26/MMBTU propane
Furnace AFUE95%
Up-front costGas hookup $6,000 · Propane $1,500

Result

Cheaper optionPropane — saves $6,395 over 15 yrs
Natural gas 15-year total$32,526
Propane 15-year total$26,132
Break-evenNone — propane cheaper from day 1

With no gas main nearby, the tie-in maxes the $6,000 hookup and the little gas available is priced high ($28/MMBTU), while bulk-delivered propane ($26/MMBTU) is locally competitive. Propane is cheaper both up front and every year, so it wins outright — the classic no-gas-line scenario.

Did You Know?

On an energy basis, natural gas runs about $15 per MMBTU (≈$1.50/therm) versus roughly $33 per MMBTU for propane (≈$3.00/gallon ÷ 0.0915 MMBTU) — propane costs about twice as much per BTU. For a typical 60-MMBTU/year home at 95% AFUE, that is about $947/year to heat with natural gas versus about $2,084/year with propane. Over 15 years natural gas totals around $16,211 versus $32,763 for propane, saving roughly $16,553 and breaking even inside the first year despite a higher gas-line hookup. The catch: these numbers only apply if a gas main reaches your property. Where no line exists, extending one can cost tens of thousands — so gas-line availability, not the per-unit price, is the real decision.

Frequently Asked Questions

Q

Is natural gas or propane cheaper for home heating?

Where a gas main is available, natural gas is far cheaper — about half the price of propane per BTU. Natural gas costs roughly $15 per MMBTU (≈$1.50/therm) while propane runs about $33 per MMBTU (≈$3.00/gallon). For a typical 60-MMBTU/year home at 95% AFUE, natural gas costs about $947/year to run versus about $2,084/year for propane. Over 15 years that is roughly $16,211 for gas against $32,763 for propane — gas wins by about $16,553 and breaks even within the first year even though the gas hookup costs a bit more up front than a propane tank.

  • Natural gas: ~$15/MMBTU (≈$1.50/therm)
  • Propane: ~$33/MMBTU (≈$3.00/gallon) — about 2× the per-BTU price
  • Annual run cost (60 MMBTU, 95% AFUE): ~$947 gas vs ~$2,084 propane
  • 15-year total: ~$16,211 gas vs ~$32,763 propane
  • Gas breaks even within the first year despite the higher hookup
Fuel$/MMBTUAnnual (60 MMBTU)15-Year Total
Natural gas$15~$947~$16,211
Propane$33~$2,084~$32,763
Propane (bulk $25)$25~$1,579~$25,184
Q

Why is propane so much more expensive than natural gas per BTU?

Natural gas is piped directly from the utility grid, so you pay almost entirely for the molecule — typically $1.20–$1.80 per therm, or about $12–$18 per MMBTU. Propane is a liquefied byproduct that has to be trucked, stored in a leased or owned tank, and delivered in batches, and its retail price swings with oil markets and delivery distance. At a common $3.00 per gallon, and because a gallon of propane holds only 91,452 BTU (0.0915 MMBTU), the energy price works out to roughly $33 per MMBTU. That delivery-and-storage overhead is why propane stays about twice as costly per BTU even when crude prices are calm.

  • Natural gas is piped — no tank, no delivery truck
  • Propane must be trucked and stored, adding overhead
  • 1 gallon of propane = 91,452 BTU = 0.0915 MMBTU
  • $3.00/gal ÷ 0.0915 ≈ $33/MMBTU
  • Propane prices swing with oil markets and delivery distance
Q

When does propane actually make sense?

Propane wins in exactly one situation: there is no natural-gas main at your property. Extending a gas line to a rural or remote lot commonly costs $15,000–$50,000 or more, which no fuel savings can recover, so a $1,500 propane tank-and-line setup becomes the cheaper path. Propane is also the practical choice for off-grid cabins, new builds far from the grid, and homes that only need occasional heat. In those cases the per-BTU premium is irrelevant because piped gas simply is not an option. Run the no-line scenario in the calculator by raising the gas hookup toward its ceiling and you will see propane pull ahead.

  • Propane wins where no gas main reaches the property
  • Rural gas-line extensions often run $15,000–$50,000+
  • Best for off-grid cabins, remote builds, occasional-use homes
  • A $1,500 tank-and-line setup beats a costly line extension
  • Per-BTU price stops mattering when piped gas is unavailable
Q

How do I compare natural gas and propane on the same basis ($/MMBTU)?

Convert both fuels to dollars per MMBTU (one million BTU) so you are comparing the same unit of heat. For natural gas, a therm is 100,000 BTU, so multiply the per-therm price by 10 — $1.50/therm becomes $15/MMBTU. For propane, a gallon holds 91,452 BTU, so divide the per-gallon price by 0.0915 — $3.00/gallon becomes about $33/MMBTU. Then your annual cost is simply your heating load divided by furnace AFUE, multiplied by the $/MMBTU rate. Pricing per MMBTU is the only apples-to-apples way to weigh a piped fuel sold by the therm against a delivered fuel sold by the gallon.

  • Natural gas: $/therm × 10 = $/MMBTU ($1.50 → $15)
  • Propane: $/gallon ÷ 0.0915 = $/MMBTU ($3.00 → ~$33)
  • 1 therm = 100,000 BTU; 1 gallon propane = 91,452 BTU
  • Annual cost = Load ÷ AFUE × $/MMBTU
  • Always normalize to $/MMBTU before comparing fuels

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Last Updated: Jun 16, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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