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Heat pump vs gas furnace in Iowa: heating cost by fuel (2026)

At Iowa's average prices, a heat pump (COP 2.5) delivers heat for $16.65 per million BTU, versus $10.91 for a 95% gas furnace, $19.61 for propane and $49.41 for heating oil. That makes the heat pump more expensive than a new gas furnace here. It breaks even with gas at a seasonal COP of 3.81.

Heat pump, est. per year$1,104COP 2.5; $1,380 at COP 2.0, $920 at COP 3.0

Gas furnace, est. per year$72395% AFUE; $859 at 80%

Propane, est. per year$1,300heat pump breaks even at COP 2.12

Heating oil, est. per year$3,276heat pump breaks even at COP 0.84

Cost per unit of heat in Iowa, cheapest first

System	$ per MMBtu delivered	Est. per year (66.3 MMBtu)
Gas furnace, 95% AFUE	$10.91	$723
Older gas furnace, 80% AFUE	$12.96	$859
Heat pump (seasonal COP 2.5)	$16.65	$1,104
Propane furnace, 95% AFUE	$19.61	$1,300
Electric resistance (baseboard/furnace), 100%	$41.62	$2,759
Heating oil furnace/boiler, 85%	$49.41	$3,276

The Iowa inputs

Electricity: 14.20¢/kWh, residential average year-to-date through July 2026 (EIA Electric Power Monthly). U.S.: 18.19¢.
Natural gas: $10.74 per thousand cubic feet, average of EIA monthly residential prices for Oct 2025–Mar 2026 (6 months reported). U.S.: $15.60.
Propane: $1.70/gal, week of Oct 19, 2026 (a year earlier: $1.52); EIA state series. EIA weekly prices exclude taxes.
Heating oil: $5.82/gal, week of Oct 19, 2026 (a year earlier: $3.02); EIA state series. Excludes taxes.
Climate: 6,630 heating degree days per year (base 65°F); NOAA CPC population-weighted state average, 2011–2025.

Heating cost calculator

State

Heating degree days / yr

Heat needed per degree day (BTU)

Heat pump seasonal COP

Gas furnace AFUE (%)

Electricity (¢/kWh)

Natural gas ($/Mcf)

Propane ($/gal)

Heating oil ($/gal)

Defaults are the state's latest EIA prices and NOAA degree days; the BTU-per-degree-day, COP and efficiency values are our assumptions. Put in your own bill rates and a known annual heat use for a better answer. Runs in your browser; nothing is sent anywhere. Tip: 1 therm = 0.1 MMBtu; $/therm × 10.36 ≈ $/Mcf.

Assumptions (ours, not EIA/NOAA figures): heat pump seasonal COP 2.5 (we also show 2.0 for very cold climates and 3.0 for mild ones); gas furnace 95% AFUE (older units ~80%); propane furnace 95%; oil 85%; electric resistance 100%. Annual totals assume a home that needs 10,000 BTU of delivered heat per heating degree day, a round number for an existing house; a tight new home may need half that, a drafty one more. The per-MMBtu comparison does not depend on house size. Prices exclude equipment, installation, maintenance, fixed monthly utility charges and rebates. Method & sources.

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