Massachusetts Fuel Cost Comparison Calculator — Oil vs. Gas vs. Heat Pump
Compare annual heating costs for oil, natural gas, and heat pump systems in Massachusetts. Enter your home details and current fuel prices to see which heating system saves you the most money.
Typical MA home: 60–120 MMBtu/year. Use 80 MMBtu for a 2,000 sq ft home.
MA average ~$3.50–$4.50/gallon (check current EIA or local supplier prices).
Older systems: 70–80%. Modern high-efficiency: 85–95%.
MA average ~$1.40–$2.00/therm (check Eversource/National Grid current rates).
Standard: 80%. High-efficiency condensing: 90–98%.
MA average ~$0.22–$0.28/kWh (check your utility bill).
Cold-climate heat pumps in MA: 2.0–3.5 seasonal average. Standard: 2.5.
Formulas Used
Heating Oil Annual Cost:
Gallons Needed = (Heating Load [MMBtu] × 1,000,000) ÷ (138,500 BTU/gal × AFUE) Annual Cost = Gallons Needed × Oil Price ($/gal)
Natural Gas Annual Cost:
Therms Needed = (Heating Load [MMBtu] × 1,000,000) ÷ (100,000 BTU/therm × AFUE) Annual Cost = Therms Needed × Gas Price ($/therm)
Heat Pump Annual Cost:
kWh Needed = (Heating Load [MMBtu] × 1,000,000) ÷ (COP × 3,412 BTU/kWh) Annual Cost = kWh Needed × Electricity Price ($/kWh)
Cost per MMBtu Delivered:
Cost/MMBtu = Annual Cost ÷ Heating Load [MMBtu]
Assumptions & References
- Heating oil energy content: 138,500 BTU/gallon (U.S. EIA standard).
- Natural gas energy content: 100,000 BTU/therm (1 therm = 100,000 BTU).
- Electricity conversion: 1 kWh = 3,412 BTU.
- AFUE (Annual Fuel Utilization Efficiency): Measures how efficiently a furnace or boiler converts fuel to heat over a heating season. Required by federal law to be ≥80% for new gas furnaces.
- COP (Coefficient of Performance): Ratio of heat output to electrical energy input. A COP of 2.5 means 2.5 units of heat per 1 unit of electricity consumed. Cold-climate heat pumps (e.g., Mitsubishi Hyper-Heat) maintain COP 2.0–3.5 in MA winters.
- Typical MA heating load: 60–120 MMBtu/year for a 1,500–2,500 sq ft home (MA DOER, 2023).
- MA oil prices: EIA Weekly Heating Oil & Propane Prices — New England region.
- MA gas prices: Eversource Energy / National Grid published residential rates.
- MA electricity prices: EIA Electric Power Monthly — Massachusetts average residential rate.
- MA Rebates: MassSave offers up to $10,000 in heat pump rebates and 0% financing — not reflected in this calculator. Visit masssave.com for current incentives.
- Federal Tax Credit: 30% federal tax credit (up to $2,000/year) available for qualifying heat pumps under the Inflation Reduction Act (IRA 2022).
- This calculator estimates operating fuel costs only. It does not include installation, maintenance, duct/distribution costs, or carbon pricing.