How Much Does It Cost to Heat a Home With Propane?
Updated Nov 7, 2026
What propane heating costs at this week’s residential price, how it compares with a heat pump, and how to pay less for propane.
Residential propane averages $2.82 a gallon in the U.S. this week, according to the EIA’s weekly heating season survey. Here is what that means for a winter of heating.
A winter of propane
How much propane a home uses depends on its size, insulation, climate and what runs on propane (furnace, water heater, stove, dryer). A home that burns 500 gallons over a winter would spend about $1,410 at this week’s average price; 800 gallons would cost about $2,256. Prices differ a lot between states, so check your state on our propane prices page.
Propane vs. a heat pump
A gallon of propane holds about 91,500 BTU of heat. In a 90% efficient furnace, one million BTU of heat costs about $34.26 at this week’s price. A heat pump that delivers three units of heat for each unit of electricity (a seasonal COP of 3) produces the same heat for about $18.78 at the U.S. average electricity price of 19.2¢/kWh. In very cold climates heat pumps work less efficiently, which is why many homes keep a propane or gas furnace as backup.
How to pay less for propane
- Fill up outside the heating season. Demand is lowest in late spring and summer, and many suppliers charge less then.
- Ask about pre-buy or budget plans. Locking in a price before winter protects you from cold-snap price spikes.
- Compare suppliers. If you own your tank, you can choose any supplier; leased tanks can usually only be filled by the company that owns them.
- Cut the load. Sealing drafts, adding attic insulation and lowering the thermostat at night reduce gallons more than any price deal.
Grill cylinders are a different market: exchange and refill prices at stores are higher per gallon than delivered home propane. Our propane prices page shows what a 20 lb tank holds at the bulk price.