How Much Does It Cost to Run My Furnace?

That sneaky furnace might be secretly plotting to empty your bank account one cycle at a time. How much a furnace costs to run is a common worry during those chilly months when the heating kicks in and the bills start mounting up.

This May Also Interest You: How Americans Heat Their Homes

While some homeowners might brag about dirt-cheap heating costs, understanding furnace operating costs is part of smart home management and budget planning — and calculating these costs isn't as complicated as it might seem.

Are Furnaces an Efficient Option to Heat Your Home?

When it comes to heating a home, not all furnaces are created equal — and neither are their operating costs. The two main players in the home heating game are natural gas furnaces and electric furnaces.

Natural gas furnaces typically cost less to operate in most regions, which explains why they're the more popular choice in colder climates. The real difference shows up in monthly bills. While electric furnaces generally have lower up-front costs, their operating expenses can be two to three times higher than gas furnaces in many areas.

This is where annual fuel utilization efficiency ratings come into play. Think of them as your furnace's report card for how efficiently it converts energy into heat. Modern high-efficiency gas furnaces can achieve AFUE ratings of up to 98%, meaning they waste very little energy in the heating process.

How Much Does It Cost to Run Different Types of Furnaces?

Cost to Run a Gas Furnace

For a typical 2,000-square-foot home in the U.S., a gas furnace costs an average of $1.29 per therm (CAD 1.83) during the coldest months. (A therm is a unit of measurement for the amount of heat energy in natural gas and is equivalent to 100,000 British thermal units or BTUs.)

In a typical day with eight hours of operation, this translates to approximately $5 to $7 (CAD 6.75 to CAD 9.45) daily or $150 to $210 (CAD 202 to CAD 283) monthly.

Cost to Run an Oil Furnace

Heating oil furnaces cost an average of $4.11/gallon (CAD 5.55) to operate, consuming roughly 0.8 to 1.7 gallons per day during peak season. This amounts to $3.29 to $6.99 (CAD 4.44 to CAD 9.44) daily or $98 to $210 (CAD 132 to CAD 283) monthly.

Cost to Run a Propane Furnace

Average propane costs run $2.61 per gallon (CAD 3.52). With typical consumption of 1 to 2 gallons daily, costs range from $2.61 to $5.22 (CAD 3.52 to CAD 7.04) per day or $78 to $157 (CAD 105 to CAD 212) monthly.

Cost to Run an Electric Furnace

Electric furnaces, meanwhile, run an average of $0.167 (CAD 0.24) per kWh. With standard usage of 40 to 50 kWh per day, daily costs range from $6.68 to $8.35 (CAD 9.60 to CAD 12), totaling $200 to $250 (CAD 270 to CAD 337) monthly, but these numbers vary significantly based on local utility rates and climate conditions.

High-Efficiency Furnaces

Each furnace's efficiency rating plays a major role in these costs. A furnace with a 95% AFUE rating will cost much less to run than an older model sporting a 70% rating — it's like comparing a hybrid car to a gas-guzzling vintage model.

More Related Articles:

• Need a New Furnace? Here’s What You Should Know About Costs

• How Much Does It Cost to Switch to an Electric Furnace?

• Do You Need a Zoned HVAC System?

• How Much Does It Cost to Replace an Oil Furnace?

• Is an HVAC Tune-up Worth the Price? (Yes, Yes It Is)

Do Furnaces Use a Lot of Electricity?

Even gas furnaces need electricity to run. While the heating itself comes from burning natural gas, the blower motor that circulates the warm air runs on electricity.

A standard furnace blower motor can typically use up to 735.5 watts per hour when running continuously. That's about the same as leaving seven 100-watt light bulbs burning. However, newer variable-speed motors are game-changers, using less electricity by adjusting their speed based on a home's heating needs.

Electric furnaces, naturally, use substantially more electricity because they rely on it for both heating and air circulation. At typical electrical rates, operating costs can quickly add up during those cold winter months.

Making Your Furnace More Cost-Efficient

Modern high-efficiency furnaces with AFUE ratings of 95% or higher typically cost more up front but can slash heating bills significantly compared to older models.

Regular maintenance plays a crucial role — filter changes, annual professional service and proper insulation can help improve system efficiency. Smart thermostats add another layer of savings by automatically adjusting temperatures based on household patterns and occupancy, potentially reducing costs even more.

All CAD conversions are based on the exchange rate on the date of publication.