Propane is generally more expensive than natural gas, costing between $2,000 and $3,000 per year to heat a home depending on factors like home size and climate, among others. We have analyzed propane heating costs from across the United States and developed the following data, where we break down the average cost to heat a home with natural gas by:
- Square feet of home
- Climate
- Age of home & efficiency of furnace
- Home style
- Age of home & insulation
Average Cost by Square Feet of Home
This table breaks down the average cost to heat a home by the square feet. Generally speaking, larger homes will be more expensive to heat, but the relationship is not necessarily linear from smaller homes up to larger homes. Smaller homes with good insulation retain their heat much better than larger homes, so less energy is expended in heating the home.
Calculations are based on homes in a moderate climate.
| Square Feet Range | BTUs Needed Per Month | Cost per Sq. Ft. | Total Cost Per Month |
| < 1,500 | < 3 Million | $0.070 | < $105 |
| 1,500 – 2,000 | ~3.6 Million | $0.072 | $108 – $144 |
| 2,000 – 2,500 | ~4 Million | $0.076 | $152 – $190 |
| 2,500 – 3,500 | ~6 Million | $0.080 | $200 – $280 |
| 3,500 + | >7 Million | $0.082 | >$287 |
Average Cost By Climate
Propane costs will vary greatly depending on the climate and temperature patterns of the home’s location. The following table outlines the cost per month of heating a home with propane based on the general location in the United States.
| Climate Type | Assumed Coverage Area (Sq Ft) | BTUs Needed Per Month | Cost Per Month |
| Mild (Southern US) | 2,000 | ~2 Million | $70 – $85 |
| Moderate (Mid Continent US) | 2,000 | ~ 4 Million | $145 – 165 |
| Severe (Northern US) | 2,000 | ~ 6 Million | $230 – $270 |
Average Cost Based on Age and Efficiency of Propane Furnace
The average propane furnace operates at roughly 90% efficiency. However, age can greatly reduce this number. The table below outlines approximate degradation of a propane furnace’s efficiency by age and the corresponding monthly cost.
| Age of Furnace | Approximate Efficiency | Assumed Coverage Area (Sq Ft) | Cost Per Month |
| New – 3 Years Old | > 94% | 2,000 | < $127 |
| 3 – 5 Years Old | 94% – 90% | 2,000 | $127 – $133 |
| 5 – 10 Years Old | 90% – 85% | 2,000 | $133 – $140 |
| 10 – 15 Years Old | 85% – 80% | 2,000 | $140 – $150 |
| 15+ Years Old | < 80% | 2,000 | > $150 |
Considerations: While all systems will degrade over time and likely increase costs, these numbers are highly contingent on the frequency with which the owner has their propane furnace serviced. Scheduling regular maintenance can greatly decrease these costs and keep your furnace operating at a higher efficiency level.
Average Cost Based on Home Style
Different Architectural styles can have a notable effect on propane heating due to their different building materials, height of the ceilings, and prevalence and size of windows. The below table outlines the approximate cost per month for heating five of the most common architectural styles with propane. Calculations assume a moderate climate and a coverage of 2,000 square feet.
| Style of Home | Concerns | Assumed Coverage Area (Sq Ft) | Average Cost Per Month |
| Victorian | Larger rooms and windows may contribute to heat loss and higher costs. | 2,000 | ~$150 – $170 |
| Ranch-Style | Costs are moderate due to good heat distribution | 2,000 | ~$140 – $160 |
| Modern | Large glass areas may contribute to heat loss and higher price | 2,000 | ~$150 – $170 |
| Colonial | Multiple Stories may cause a slight challenge and price increase | 2,000 | ~$145 – $165 |
| Log Homes | Moderate to high cost due to combination of natural insulation and potential leaks | 2,000 | ~$145 – $165 |
Average Cost Based on Age of Home and Insulation
Additionally, the age of a home has a great effect on the efficacy of propane heating, as older homes tend to have less or more degraded insulation. The following table provides data on how the age of a home and approximated quality of degraded insulation will affect the monthly cost of propane heating.
| Age of Home | Insulation Quality by R-Value | Assumed Coverage Area (Sq Ft) | Estimated Degradation | Average Cost Per Month |
| 0-10 | R-38 to R-49 | 2,000 | < 5% | $126 – $134 |
| 10-15 | R-30 to R-38 | 2,000 | 5% – 10% | $135 – $143 |
| 15-20 | R-25 to R-30 | 2,000 | 10% – 15% | $143 – $152 |
| 20-35 | R-19 to R-25 | 2,000 | 15% – 20% | $152 – $160 |
| 35-40 | R-15 to R-19 | 2,000 | 20% – 25% | $160 – $166 |
| 40+ | R-11 to R-15 | 2,000 | >25% | +$166 |
Concerns: The above data is highly contingent on a number of factors. It is important to consult with a HVAC professional to have your insulation evaluated.
If you are interested in a copy of this report, contact us here.
