Pellet Stove vs Propane: Which Is Cheaper to Heat With?
Updated October 2026
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"Pellets are cheaper than propane" is true in a lot of the country and false in some of it. It depends almost entirely on what you pay per gallon of propane and per ton of pellets. This guide does the math both ways, shows where each fuel wins, and is honest about how long a pellet stove takes to pay for itself.
The short answer
At typical 2026 prices, pellets beat propane wherever propane costs more than about $2.25 a gallon, which covers most of the Northeast, the mid-Atlantic and much of the West. In parts of the Midwest where propane runs under $2, a high-efficiency propane furnace can heat as cheaply as pellets, and a pellet stove only pays off if you use it to zone-heat the rooms you live in.
Cost per million BTU of heat delivered
Comparing fuels by the bag or the gallon is meaningless. What matters is the cost of a million BTU of heat actually delivered into the house. The figures below use 91,500 BTU per gallon of propane, 8,000 BTU per pound of pellets, a 95% efficient propane furnace, an 80% efficient vented propane heater, and a pellet stove at 80% efficiency, which is in line with the EPA-certified figures on stoves like the ComfortBilt HP22 (80.5%).
| Propane price | Furnace (95%) | Vented heater (80%) |
|---|---|---|
| $2.00 / gal | $23.01 | $27.32 |
| $2.50 / gal | $28.76 | $34.15 |
| $3.00 / gal | $34.51 | $40.98 |
| $3.50 / gal | $40.26 | $47.81 |
| Pellet price | Per 40-lb bag | Pellet stove (80%) |
|---|---|---|
| $250 / ton | $5.00 | $19.53 |
| $300 / ton | $6.00 | $23.44 |
| $350 / ton | $7.00 | $27.34 |
| $400 / ton | $8.00 | $31.25 |
Read across: $300-a-ton pellets cost about the same as $2.04 propane in a 95% furnace, and $350-a-ton pellets about the same as $2.38 propane. Above that propane price, pellets win; below it, propane does. Against an older 80% propane heater or furnace, the break-even is lower still, around $1.70 to $2.00 a gallon.
What propane costs where you live
The US Energy Information Administration forecast the 2025–26 winter average for residential propane at about $2.46 a gallon, but the regional spread is wide: East Coast prices have been running over $3.20 while the Midwest has been under $2.00. Look at your last delivery ticket, not the national average. Pellet prices vary less, typically $250 to $400 a ton for bagged premium pellets, with the best prices on pallets bought in spring and summer.
A full winter, side by side
Three tons of pellets in an 80% stove delivers about 38 million BTU, a typical season of main-living-area heat in a cold climate. Delivering the same heat with a 95% propane furnace takes about 440 gallons.
| Fuel and price | Cost for the season |
|---|---|
| Pellets at $300 / ton | $900 |
| Pellets at $350 / ton | $1,050 |
| Propane at $2.00 / gal | $884 |
| Propane at $2.50 / gal | $1,104 |
| Propane at $3.00 / gal | $1,325 |
| Propane at $3.50 / gal | $1,546 |
At Northeast propane prices, that is roughly $300 to $650 a year in fuel savings for the same heat. At Midwest prices, it is close to a wash on fuel alone.
The bigger saving is usually zone heating
Most of the real-world savings from a pellet stove do not come from the fuel price. They come from heating the rooms you actually use. A pellet stove with a thermostat keeps the living area warm while the furnace thermostat drops for the rest of the house, so you buy less heat overall, not just cheaper heat. That is why a pellet stove can still pay off where propane is cheap: you are not replacing every gallon, you are replacing the gallons spent heating empty rooms.
How long does a pellet stove take to pay back?
A freestanding pellet stove installed through the wall typically costs about $2,600 to $5,000 all in. Our pellet stove prices guide breaks that down by model. A $3,200 install saving $650 a year pays back in about five years; one saving $300 a year takes ten or more. Zone heating shortens that, and where propane is under $2 a stove may never pay back on fuel alone. Be suspicious of anyone who promises a two-year payback without asking what you pay for propane.
Where propane still wins
- Convenience. A propane furnace runs itself. A pellet stove needs its hopper filled, usually every day or two in deep winter, and its burn pot and ash cleaned regularly. Our pellet stove maintenance schedule lays out what that involves.
- Whole-house distribution. Ducted propane heat reaches every room. A pellet stove heats the area it is in and the rooms open to it.
- Storage. A ton of pellets is 50 bags that need a dry spot. Propane sits in a tank outside.
- Power outages. Both a pellet stove and a propane furnace need electricity. Neither runs in an outage without a backup.
Where pellets win
- Fuel cost above roughly $2.25 a gallon of propane.
- Price stability. Pellet prices move less than propane through a winter, and you can buy a season's supply at summer prices.
- No delivery dependence. You are not waiting on a propane truck during a cold snap.
- The fire. A pellet stove gives you a real flame in the room. A furnace does not.
Which pellet stove fits a propane house
If you are adding a pellet stove to cut a propane bill, hopper size matters more than peak output, because the stove will run for long stretches:
| Stove | Heats up to | Hopper | Price |
|---|---|---|---|
| ComfortBilt HP22 | 2,800 sq ft | 55 lb | $2,399 |
| ComfortBilt HP22N | 2,800 sq ft | 80 lb, up to 32 hrs | $2,599 |
| Drolet ECO-65R | 800–2,600 sq ft | 125 lb, up to 105 hrs | $4,129 |
| ComfortBilt HP50S | 2,400 sq ft | 47 lb | $1,899 |
The HP22 is the default pick for an average house. The HP22N stretches refills to every day or two, and the ECO-65R to about four days. If you have a masonry fireplace you no longer use, the HP22i pellet insert puts pellet heat there instead. All are compared in our best pellet stoves guide.
Frequently asked questions
Is it cheaper to heat with pellets or propane?
Pellets are cheaper wherever propane costs more than about $2.04 to $2.38 a gallon, assuming pellets at $300 to $350 a ton and a modern 95% propane furnace. Where propane is under $2, the fuel costs are close, and the saving comes from zone-heating with the pellet stove.
How many gallons of propane equal a ton of pellets?
About 147 gallons of propane burned in a 95% furnace delivers the same heat as one ton of pellets in an 80% stove.
Does a pellet stove work without electricity?
No. The auger and blowers need power. A battery backup or generator keeps it running in an outage. If heat without power is the priority, see pellet stove vs wood stove.
Related guides
- Pellet Stove Prices 2026
- Pellet Stove vs Wood Stove
- The Most Efficient Pellet Stoves
- Heat Without a Chimney: Ventless Gas vs a Pellet Stove
- Pellet Stove Installation Guide
Shop all pellet stoves: No Sales Tax in any state and free shipping on every stove. Call 1-888-914-0022 with your square footage and what you pay for propane, and we will tell you honestly whether a pellet stove makes sense.