Heating with natural gas
Updated August 2026 · EIA residential average, 2025–26 heating season (~$16/Mcf ≈ $1.60/therm; summer per-therm rates run higher)
Quick answer: natural gas delivers heat at $17.78 per million BTU (90% AFUE furnace (standard 80%, condensing up to 97%)) — #2 cheapest of 7 common options. A 2,000 sq ft home in a cold climate runs about $1,600/season.
The cheapest widespread heating fuel in most of the US — if the pipe already reaches your street. Roughly half of American homes heat with it.
Pros
- • Usually the lowest cost per BTU where available
- • No tank, no deliveries, no running out
- • Modern condensing furnaces reach 95%+ efficiency
Cons
- • Not available in many rural areas
- • Price is set by your utility — you can't shop around in most states
Season cost by home size & climate
| Home size | Mild | Moderate | Cold | Very cold |
|---|---|---|---|---|
| 1,000 sq ft | $267 | $533 | $800 | $1,067 |
| 1,500 sq ft | $400 | $800 | $1,200 | $1,600 |
| 2,000 sq ft | $533 | $1,067 | $1,600 | $2,133 |
| 2,500 sq ft | $667 | $1,333 | $2,000 | $2,667 |
| 3,000 sq ft | $800 | $1,600 | $2,400 | $3,200 |
Compare against everything else
Estimated heating load: 81 million BTU/season — a rough figure; insulation and thermostat habits move it a lot.
Season cost by fuel (edit any price — it's your local number that matters)
≈ 7,913 kWhs · season-average COP ≈ 3.0 for a modern cold-climate air-source unit (2.0–4.0 depending on climate)
≈ 900 therms · 90% AFUE furnace (standard 80%, condensing up to 97%)
≈ 6.1 tons · 80% efficient pellet stove (75–85% typical)
≈ 5.3 cords · 70% efficient modern EPA wood stove (open fireplaces can be 10% or worse)
≈ 688 gallons · 85% AFUE oil furnace/boiler (older units 80%, new 87%+)
≈ 984 gallons · 90% AFUE propane furnace (condensing up to 97%)
≈ 23,740 kWhs · baseboards, electric furnace or space heaters — 100% efficient at the unit, but every BTU is made from scratch
Estimates: national-average prices (sources on each fuel page) and typical system efficiencies. Your utility bill has your real per-unit price — plug it in above for a number you can act on.
FAQ
How much does it cost to heat a home with natural gas?+
At the current average price ($1.60/therm) and a typical system (90% AFUE furnace (standard 80%, condensing up to 97%)), natural gas delivers heat at $17.78 per million BTU — roughly $1,600 per season for a 2,000 sq ft home in a cold climate, less in milder ones.
Is natural gas cheap compared to other heating fuels?+
It ranks #2 of 7 common heating options by cost per delivered BTU at national-average prices. The cheapest widespread heating fuel in most of the US — if the pipe already reaches your street. Roughly half of American homes heat with it.
What are the downsides of heating with natural gas?+
Not available in many rural areas. Price is set by your utility — you can't shop around in most states.