What is the cheapest way to heat a house in Indiana?

At current prices, natural gas costs $11.58 per million Btu of delivered heat in Indiana, the lowest of the fuels compared. A typical 2,000 sq ft home would spend about $651 in a normal winter.

Cheapest way to heat in Indiana

Natural gas

$11.58 per million Btu of heat in the house, about $651 for a typical winter. The most expensive option, heating oil, would cost $3,107.

Typical winter: a 2,000 sq ft house of average insulation in a normal Indiana heating season. Prices as of October 26, 2026.

Cost of one million Btu of heat

Natural gas $11.58 per million Btu

$10.80/Mcf · 90% efficient · Indiana residential, last winter · $651 for a typical winter
Heat pump $19.98 per million Btu

17.0¢/kWh · COP 2.5 · Indiana residential, year to date · $1,124 for a typical winter
Propane $33.67 per million Btu

$2.62/gal · 85% efficient · Indiana weekly survey · $1,894 for a typical winter
Electric resistance $49.94 per million Btu

17.0¢/kWh · 100% efficient · Indiana residential, year to date · $2,810 for a typical winter
Heating oil $55.23 per million Btu

$6.50/gal · 85% efficient · Indiana weekly survey · $3,107 for a typical winter

Your home, your winter

Change the size and insulation to match your house. Prices are this week’s Indiana figures.

Normal heating season in Indiana: 5,626 heating degree days, so about 56 million Btu of heat to deliver.

Natural gas $652
Heat pump $1,124
Propane $1,894
Electric resistance $2,810
Heating oil $3,107

A typical-weather season at this week’s fuel prices. Efficiencies: gas furnace 90%, propane and oil 85%, heat pump seasonal COP 2.5. How the estimate works

Indiana’s winters

A normal heating season here has 5,626 heating degree days (1991–2020 average; U.S. lower 48: about 4,300).

Last season (2025–26) had 5,312, −5.6% against normal.

Oct345
Nov689
Dec1,021
Jan1,172
Feb955
Mar761
Apr403

In the coldest season of the last 30 (2013–14) the same house would have needed 16% more heat; in the mildest (2011–12), 18% less.

What this comparison leaves out

Equipment you already have. Switching fuels means new equipment. This page compares the cost of heat, not the cost of a new furnace, boiler or heat pump.
Availability. Natural gas needs a utility main on your street.
Heat pumps in deep cold. A heat pump’s efficiency falls as it gets colder. The seasonal COP of 2.5 used here suits a modern unit in a moderate climate; older units, or cold-climate homes with resistance backup, do worse.
Your rate structure. Gas and electricity prices here are state averages including fixed charges. Each extra unit on your bill may cost a little less.