Gas vs Electric Appliance Calculator

Gas vs electric: the appliance decision nobody should wing

Every time a water heater fails or an HVAC system needs replacing, a homeowner faces the same decision — and most make it on instinct. Is gas cheaper? Does electric save money? The honest answer is “it depends” — and what it depends on is your state’s actual utility rates, the efficiency tier of the equipment you’re replacing, your climate zone, and whether your state offers the income-qualified HEAR rebates. This tool runs those numbers for you instead of relying on rule-of-thumb assumptions.

Why state utility rates are the whole game

Residential electricity rates in the United States range from roughly 11 cents per kWh in Washington and Idaho to over 30 cents in California and Hawaii. Natural gas shows similar spread: around $1.10/therm in Texas and Louisiana up to $1.75 or more in parts of New York and Massachusetts. That’s a 3x difference on electricity and roughly 60% on gas. When the underlying fuel costs spread that wide, a “national average calculator” produces answers that are useless or actively misleading for most users.

As a rule of thumb: in states with cheap electricity (hydropower-heavy regions like WA, OR, ID, or nuclear-heavy regions like SC and IL), electric appliances typically come out ahead. In states with cheap gas and expensive electricity (CA, NE, much of New England), gas usually wins on pure operating cost — unless you’re replacing with a heat pump, which changes the math dramatically.

Heat pumps change the equation entirely

A standard electric resistance heater (think baseboards or traditional electric furnace) converts one kWh of electricity into one kWh of heat. That’s it. A heat pump moves heat rather than generating it, and the coefficient of performance (COP) for a modern air-source heat pump is typically 2.5 to 4.0 — meaning one kWh of electricity delivers 2.5 to 4 kWh of actual heating in mild weather. Efficiency falls as it gets colder: at 5°F, cold-climate heat pumps must still reach a COP of at least 1.75 under the NEEP cold-climate specification, and over a cold-climate heating season a heat pump at the federal minimum rating averages about 2.2. The calculator uses that lower seasonal figure for the cold-climate setting.

This is why a heat pump water heater in California often beats gas despite California’s high electricity rates: even at $0.30/kWh, a heat pump using 1/3 the electricity of a standard tank comes out ahead of gas at $1.60/therm. Where your state runs the HEAR program, an income-qualified rebate of up to $1,750 for a heat pump water heater makes the math even more favorable.

Incentives in 2026: the tax credit ended, state rebates remain

The federal Energy Efficient Home Improvement Credit (Section 25C), worth up to $3,200 a year, ended for equipment placed in service after December 31, 2025. What remains are the IRA’s state-run Home Electrification and Appliance Rebates (HEAR, also called HEEHRA): point-of-sale rebates for income-qualified households, available only where a state has launched its program. Caps per household:

• Heat pump HVAC: up to $8,000
• Heat pump water heater: up to $1,750
• Electric/induction stove: up to $840
• Heat pump clothes dryer: up to $840
• Electrical panel upgrade: up to $4,000

Households under 80% of area median income can get up to the full cost; 80–150% get up to half, with a $14,000 total cap. Check your state energy office for whether the program is open where you live; the calculator’s rebate figures are the maximums, not a promise.

The panel-upgrade question

The most commonly cited obstacle to full home electrification is the electrical panel. Homes built before 1990 often have 100-amp service, which may be insufficient to run a heat pump HVAC, heat pump water heater, induction range, electric dryer, and EV charger all without tripping breakers. Upgrading to a 200-amp panel typically costs $1,500–$5,000, though a state HEAR rebate of up to $4,000 can cover a significant chunk — in some cases nearly the entire cost.

Before committing to electrification, a licensed electrician can do a “load calculation” on your panel to tell you whether you actually need to upgrade, or whether a smart panel (like Span or Leviton’s Load Center) or “circuit-sharing” devices can let you add loads without a full service upgrade.

Natural gas price volatility is real

Over the past decade, residential natural gas prices have been significantly more volatile than electricity prices. In the winter of 2022–2023, natural gas prices spiked 40%+ year-over-year in many markets. Electricity rates move more slowly because utilities are regulated and typically adjust rates only once or twice per year through public rate cases.

The long-term trend matters: renewable energy (solar and wind) has driven wholesale electricity prices modestly down over the last decade in many markets, while upstream gas infrastructure costs have driven residential gas rates modestly up. A 2% annual gas price increase combined with a 1% annual electricity decrease, compounded over 10 years, is a 33-percentage-point swing in the fuel-cost ratio. The 10-year projection premium feature lets you model scenarios like this.

Induction is the quiet winner in the kitchen

For ranges specifically, induction isn’t just “electric” — it’s a third category. Induction cooktops transfer heat directly to the cookware via electromagnetic induction, skipping the inefficiency of heating a burner element first. Typical induction efficiency is 85–90%; a gas burner is 40–55% efficient because most heat goes into the air around the pan, not the food. The result: induction cooks faster and uses less energy than either gas or standard electric resistance. Factor in the up-to-$840 state HEAR rebate for induction, and the payback can be surprisingly quick even in moderate-electricity states.

How to use this calculator

Start by selecting your state — this sets your electricity and gas prices. Then toggle the appliances you want to compare. For each appliance, pick your current fuel type and set your usage level (loads per week, meals cooked, household size, or square footage depending on appliance). The tool will show you annual and 10-year cost for both gas and electric side by side, and tell you which wins in your state. Subscribers unlock the rebate and payback calculator, the 10-year rate-trend projections, and the full-home electrification analysis with payback period.