Heat Pump vs Gas Furnace vs Wood Stove: What Does Heat Really Cost?
Updated 2026-10-14.
The fair way to compare heating options is the cost of one million Btu (MMBtu) of heat actually delivered to your house. That means fuel price divided by fuel energy times appliance efficiency.
Inputs (national averages)
- Electricity: 18.34¢/kWh, U.S. residential, June 2026 (EIA Electric Power Monthly, Table 5.6.A, as of 2026-10-14). 1 kWh = 3,412 Btu.
- Natural gas: $16.68/Mcf, U.S. residential 2025 annual average (EIA, as of 2026-10-14). 1 Mcf ≈ 1.036 MMBtu (EIA units). Winter monthly prices are lower than the annual average, because fixed charges get spread over more gas.
- Firewood: seasoned hardwood $250–$500 per cord (Angi, 2026, as of 2026-10-14). Heat content runs from about 11.4 to 24+ MMBtu per cord depending on species (University of Missouri Extension). EPA-certified stoves are roughly 60–80% efficient (EPA Burn Wise).
Results (cost per MMBtu delivered)
| System | Assumption | $/MMBtu |
|---|---|---|
| Heat pump, mild weather | COP 3 | $17.92 |
| Heat pump, cold weather | COP 2 | $26.88 |
| Electric baseboard | COP 1 | $53.75 |
| Gas furnace, high-efficiency | 95% AFUE | $16.95 |
| Gas furnace, older | 80% AFUE | $20.13 |
| Wood stove, best case | $250 oak cord, 24 MMBtu, 75% | $13.89 |
| Wood stove, worst case | $500 cord, 24 MMBtu, 60% | $34.72 |
Calculated by ProjectMath from the inputs above. The COP values are example operating points, not measured ratings.
What this means
- At national average prices, a heat pump and a high-efficiency gas furnace come out roughly even. Your local electricity-to-gas price ratio decides which one wins. In California, residential power cost 34.74¢/kWh in June 2026 (EIA, same table), which pushes the math toward gas.
- Wood is cheapest only if you get dense hardwood at a low price and burn it in an efficient stove. Bought wood at a high price costs more than either alternative, and it takes your time.
- Electric resistance heat is by far the most expensive option. Replacing baseboard with a heat pump is the clearest win on this list.
- Equipment and installation cost aren't included here. Compare actual quotes for those.
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