How Much Does It Cost to Run a Electric Furnace?

A typical Electric Furnace uses 10000W and runs about 8 hours/day. At the national average rate of 16.72¢/kWh, that costs approximately $401.28/month.

Free calculator, no sign-up Based on 10000W typical draw EIA rate data by state

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Typical range: 5000W – 20000W

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Typical usage: Winter months (Nov-Mar)

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What Affects the Cost of Running a Electric Furnace

Electric Furnaces Are the Most Expensive Way to Heat a Home

An electric furnace converts electricity directly into heat at near 100% efficiency, which sounds good until you compare it to alternatives. A heat pump delivers 2-3 units of heat for every unit of electricity by extracting heat from outdoor air. A gas furnace uses cheaper natural gas fuel. At 10,000W running 8 hours per day, an electric furnace costs $40-80/month depending on your rate. The same heating output from a heat pump would cost $15-35/month. This is why HVAC professionals in moderate climates increasingly recommend heat pumps over electric furnaces.

Your Climate Zone Determines the Real Monthly Cost

In Minnesota, an electric furnace might run 10-12 hours per day for 6 months. In North Carolina, it might run 6-8 hours per day for 4 months. The annual operating cost difference between these two scenarios is $500-$1,000+. If you live in a climate where winter temperatures regularly drop below 20F, the cost of electric resistance heating becomes serious enough to justify investing in a more efficient heating system.

Insulation Is the Cheapest Way to Reduce Furnace Costs

Every dollar spent on insulation and air sealing reduces the number of hours your furnace needs to run. Adding attic insulation from R-19 to R-38 can reduce heating costs by 10-20%. Sealing air leaks around windows, doors, and electrical outlets can save another 10-15%. These improvements cost far less than a new heating system and deliver savings every winter for the life of the home.

Electric Furnace vs. Alternatives

How the monthly cost of a Electric Furnace compares to other options:

Alternative Est. Monthly Cost Notes
Electric Furnace (this page) $401.28 At national average rate, 8hrs/day
Gas furnace (natural gas) ~$40-80 Usually 30-50% cheaper to operate than electric in most markets, but requires gas hookup.
Heat pump (air source) ~$25-50 2-3x more efficient than electric resistance. Best in moderate climates.
Electric baseboard heaters ~$60-120+ Same efficiency as a furnace but without ductwork. Often used in zones, which can save if only heating occupied rooms.
Propane furnace ~$80-140 Often more expensive than electric in areas with high propane prices.

Electric Furnace Cost by State

What a Electric Furnace costs to run at 10000W for 8 hours/day in every state:

State Rate Monthly Cost Yearly Cost
Alabama 14.82¢ $355.68 $4268.16
Alaska 25.34¢ $608.16 $7297.92
Arizona 13.81¢ $331.44 $3977.28
Arkansas 12.63¢ $303.12 $3637.44
California 31.41¢ $753.84 $9046.08
Colorado 15.24¢ $365.76 $4389.12
Connecticut 29.35¢ $704.4 $8452.8
Delaware 15.24¢ $365.76 $4389.12
District of Columbia 15.87¢ $380.88 $4570.56
Florida 15.63¢ $375.12 $4501.44
Georgia 14.12¢ $338.88 $4066.56
Hawaii 43.21¢ $1037.04 $12444.48
Idaho 10.87¢ $260.88 $3130.56
Illinois 16.37¢ $392.88 $4714.56
Indiana 15.12¢ $362.88 $4354.56
Iowa 14.23¢ $341.52 $4098.24
Kansas 14.98¢ $359.52 $4314.24
Kentucky 12.87¢ $308.88 $3706.56
Louisiana 11.98¢ $287.52 $3450.24
Maine 22.87¢ $548.88 $6586.56
Maryland 16.12¢ $386.88 $4642.56
Massachusetts 28.76¢ $690.24 $8282.88
Michigan 18.76¢ $450.24 $5402.88
Minnesota 15.34¢ $368.16 $4417.92
Mississippi 13.76¢ $330.24 $3962.88
Missouri 13.12¢ $314.88 $3778.56
Montana 12.45¢ $298.8 $3585.6
Nebraska 11.98¢ $287.52 $3450.24
Nevada 15.03¢ $360.72 $4328.64
New Hampshire 25.34¢ $608.16 $7297.92
New Jersey 18.76¢ $450.24 $5402.88
New Mexico 14.87¢ $356.88 $4282.56
New York 22.87¢ $548.88 $6586.56
North Carolina 13.98¢ $335.52 $4026.24
North Dakota 11.87¢ $284.88 $3418.56
Ohio 15.34¢ $368.16 $4417.92
Oklahoma 11.98¢ $287.52 $3450.24
Oregon 13.12¢ $314.88 $3778.56
Pennsylvania 16.87¢ $404.88 $4858.56
Rhode Island 27.12¢ $650.88 $7810.56
South Carolina 14.98¢ $359.52 $4314.24
South Dakota 13.76¢ $330.24 $3962.88
Tennessee 12.87¢ $308.88 $3706.56
Texas 14.98¢ $359.52 $4314.24
Utah 10.87¢ $260.88 $3130.56
Vermont 21.34¢ $512.16 $6145.92
Virginia 15.34¢ $368.16 $4417.92
Washington 10.76¢ $258.24 $3098.88
West Virginia 13.12¢ $314.88 $3778.56
Wisconsin 16.98¢ $407.52 $4890.24
Wyoming 11.23¢ $269.52 $3234.24

Energy-Saving Tips for Your Electric Furnace

  • Replace air filters monthly to maintain efficiency
  • Seal ductwork to prevent heated air from escaping
  • Lower the thermostat by 1-2 degrees; each degree saves roughly 3% on heating
  • Consider a heat pump if your climate allows; they are far more efficient

Frequently Asked Questions

A typical electric furnace (10,000W) running 8 hours per day costs about $40 per month at the national average rate of 16.72 cents/kWh. In cold climates where it runs 12+ hours per day, costs reach $60-100/month. In states with high electricity rates, monthly costs can exceed $150. Use the calculator above with your state and actual run hours for a precise estimate.

In most U.S. markets, natural gas heating is 30-50% cheaper than electric resistance heating. The exception is regions with very cheap electricity and expensive gas (parts of the Pacific Northwest). However, heat pumps, which also run on electricity, are 2-3x more efficient than electric furnaces and often competitive with or cheaper than gas in moderate climates.

This depends entirely on your climate, insulation, thermostat setting, and home size. In mild climates (40-50F winters), an electric furnace might run 4-6 hours per day. In cold climates (10-30F winters), 8-12 hours is common. In extremely cold climates (below 0F), the furnace may run nearly continuously. You can estimate your run time by tracking how many hours per day your thermostat shows the system actively heating.

If you live in a climate where winter temperatures stay above 20-25F most of the time, a heat pump will likely cut your heating costs by 40-60%. Modern cold-climate heat pumps can operate efficiently down to -5F or lower. The upfront cost ($4,000-8,000 installed) typically pays back in 3-6 years through electricity savings. In very cold climates where temperatures regularly drop below 0F, a dual-fuel system (heat pump plus gas or electric backup) is often the best compromise.

Related Appliances

Electricity cost estimates are based on typical wattage and average residential rates from the U.S. Energy Information Administration. Your actual costs may vary based on your appliance's specific wattage, usage patterns, and your utility's rate structure. See our full disclaimer.