Propane Cost Calculator

Calculate propane heating and usage costs with tank size recommendations.

By Konstantin Iakovlev · Updated April 2026 · Source: DOE

$

Monthly Cost

$0.00

Annual Cost

$0.00

Tank Refill Cost

$1,100.00

Cost Details

Monthly Propane Cost$0.00
Annual Propane Cost$0.00
Refill Cost (400 gal @ 80%)$1,100.00
Equivalent Natural Gas Cost$0.00/mo

Use the Propane Cost Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Heating with propane means planning ahead for both cost and tank capacity, and this tool tackles both at once. With 2026 propane prices projected to average $2.90 per gallon, having a yearly estimate in hand makes it far easier to budget and manage your energy use without surprises.

The estimate starts with your home's square footage, insulation quality, and local climate data to gauge annual BTU requirements. That BTU figure is converted into gallons using propane's energy content of 91,500 BTU/gallon, then multiplied by the projected 2026 average of $2.90 per gallon to reach a total cost. Tank size recommendations follow from your monthly usage so supply stays ahead of demand.

Usage tends to get underestimated, especially in homes with aging insulation or larger households, and every propane appliance counts, not just the furnace. Tank sizing cuts both ways: go too big and you pay more upfront than you need to, go too small and you end up scheduling frequent deliveries that can cost more per fill.

Example: 2000 sq ft Home in a Cold Climate

  1. 1 Input: Home Size = 2000 sq ft, Insulation Quality = Average, Climate = Cold (e.g., Chicago), Other Propane Appliances = Water Heater, Stove.
  2. 2 Calculation: Estimated annual BTU requirement for heating and appliances is 150,000,000 BTU. Divided by 91,500 BTU/gallon = 1639 gallons/year. Multiplied by $2.90/gallon (2026 avg) = $4753.10 annual cost. Monthly usage of ~137 gallons suggests a 500-gallon tank to allow for buffer and less frequent refills.
  3. 3 Result: Estimated Annual Propane Cost = $4753.10. Recommended Tank Size = 500 gallons.
  4. 4 Context: This estimate helps you budget for your energy expenses and ensures you select a tank that meets your household's demands without excessive refill frequency, considering the projected 2026 propane prices.

Source: DOE · Last updated: April 2026

Frequently Asked Questions

How much does propane cost per gallon?
Propane prices average $2.50-$3.50 per gallon for delivery, varying by region and season. Pre-season fill-ups in summer can save $0.30-$0.50 per gallon. Prices are highest in winter when demand peaks. Bulk delivery of 200+ gallons typically gets a lower per-gallon price.
How much propane does a home use per year?
A home using propane for heating, hot water, and cooking uses 800-1,200 gallons per year in a moderate climate. Heating-only use averages 500-800 gallons per winter season. At $3 per gallon, annual propane costs range from $1,500-$3,600.
What size propane tank do I need for my house?
A 500-gallon tank is standard for whole-home heating. A 250-gallon tank works for supplemental use or warm climates. A 120-gallon tank is sufficient for cooking and water heating only. Larger tanks allow bulk purchases at lower prices and less frequent deliveries.

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