Oil vs Gas vs Heat Pump: What Will It Cost to Heat Your Long Island Home?
Last updated Reviewed by Waseem Shahzad, Lead Technician
Enter what heats your house now and how much you used last winter, and the calculator shows what the same heat would cost with oil, gas, propane, electric baseboard or a heat pump. The prices are pre-filled with the latest published figures and you can change any of them.
Heating cost calculator
| Heating with | Winter cost | vs. today |
|---|---|---|
| Heating oil (today) | $2,561 | – |
| Natural gas | $947 | saves $1,614 |
| Propane | $2,874 | $313 more |
| Electric baseboard | $3,740 | $1,179 more |
| Heat pump | $2,137 | saves $424 |
Estimates only, not a quote. Fuel use, prices, equipment efficiency and the house itself change the real number. Fixed charges (meter, service and delivery fees, taxes) are not included.
How does the calculator work?
It works out how much heat your house received last winter from the fuel you used and your system's efficiency, then prices that same heat on each other option. Oil, gas and propane use the efficiency you enter; electric baseboard is 100% efficient; the heat pump uses the seasonal efficiency figure you set.
If you leave the use box empty, it assumes a typical Northeast household from the U.S. Energy Information Administration's winter forecast. Your own bills or oil delivery slips give a far better answer, so use them if you have them.
Where do the starting prices and assumptions come from?
Each starting figure comes from a public source with its date: NYSERDA's weekly Long Island oil and propane prices, the EIA for New York gas and electricity prices and typical winter use, the Department of Energy for furnace efficiency, and NEEP for the heat pump figure. Change any of them to match your bills.
| Assumption | Starting value | Source, as of |
|---|---|---|
| Heating oil, Long Island | $6.37 per gallon | NYSERDA weekly heating oil prices, week of Oct 19, 2026 |
| Propane, Long Island | $4.72 per gallon | NYSERDA weekly propane prices, week of Oct 19, 2026 |
| Natural gas, New York State average | $1.70 per therm | EIA residential price, 2025 average ($17.58 per Mcf) |
| Electricity, New York State average | $0.2865 per kWh | EIA Electric Power Monthly, August 2026 |
| Oil, gas or propane system efficiency | 80% | DOE: mid-efficiency systems run 80% to 83%; older ones 56% to 70% |
| Heat pump seasonal efficiency (COP) | 1.75 | NEEP cold-climate specification v4.0: minimum COP at 5°F. We use it as a deliberately low season figure |
| Typical winter use (Nov to Mar) | 402 gal oil, 570 therms gas, 515 gal propane, 6,252 kWh electric | EIA Winter Fuels Outlook, Oct 2026 (oil is the U.S. figure; the others are Northeast) |
| Energy content | Oil 138,500 Btu/gal; propane 91,452 Btu/gal; gas 100,000 Btu/therm; 3,412 Btu/kWh | EIA |
| Rate 580 discount | $0.0479 off each heat pump kWh | LIPA tariff, effective Jan 1, 2026: $0.0585 instead of $0.1064 per kWh above 400 kWh a month, October to May |
The EIA use figures cover everything the main heating fuel does in a home, so they include hot water where the same fuel heats it. Gas and electricity prices are state averages, not PSEG Long Island or National Grid Long Island bills, so enter the rate from your own bill if you can.
When does a heat pump cost less to run than oil?
At today's prices, usually. With oil near $6.37 a gallon on Long Island in October 2026, even our deliberately low heat pump efficiency of 1.75 heats the same house for less than an 80% oil burner. The gap narrows if your electric rate is high or the heat pump is undersized for the coldest nights.
Natural gas is a different story. At about $1.70 a therm, gas costs less to run than a heat pump in this calculator, even with a heat pump efficiency of 3 and the Rate 580 discount. If your street has gas, the running-cost case for a heat pump is weak at these prices; the reasons to choose one are cooling, getting off fossil fuel, or a gas system that needs replacing anyway. Read is natural gas available on my street if you are on oil and wondering about gas.
How much does Rate 580 change the heat pump number?
It cuts the delivery charge on electricity above 400 kWh a month from October to May, from $0.1064 to $0.0585 per kWh under the LIPA tariff effective January 2026. The calculator applies that $0.0479 to every heat pump kWh, which assumes your other household use already covers the first 400 kWh each month.
Rate 580 is for homes where electric heat or a heat pump supplies all of the heat. A dual-fuel home where the boiler still runs on cold days may not qualify, so confirm with PSEG Long Island. The Power Supply Charge is not discounted. Details: Rate 580 explained.
What should I do with the result?
Treat it as a direction, not a bill. If a heat pump or gas comes out well ahead, the next step is a look at the house: the heating load, the ductwork or baseboard, the electrical panel and whether gas reaches your street. That turns an estimate into a written quote you can compare.
For install prices, see the heat pump cost guide and the furnace and boiler cost guide. For incentives, see the 2026 Long Island heat pump incentive guide.
Conversions and heat pumps from our records
Oil furnace replaced with gas heat, central air and a water heater
West Babylon · Heating & Cooling Installation · October 2026
An oil furnace and oil tank removed and replaced with a Goodman gas furnace, central air, a new water heater and a Wi-Fi thermostat.
Two old systems replaced with a Daikin multi-zone mini-split heat pump
Huntington · Mini-Split Installation · May 2026
Two old indoor air handlers and outdoor units were removed and replaced with a Daikin multi-zone mini-split heat pump, plus a new drain pump.
Common questions
Is this calculator a quote?
No. It is an estimate built on average prices and the efficiency figures you enter. Real costs depend on the house, the equipment, how it is installed and your actual rates. We give a written quote after we see the home and the current system.
Why is the heat pump efficiency set so low?
We start at 1.75, the minimum efficiency the NEEP cold-climate specification requires at 5°F, so the heat pump result errs on the high side. Long Island winters spend most hours well above 5°F, so a well-sized cold-climate heat pump should do better. You can change the figure.
Where do I find my winter usage?
Add up the gallons on last winter's oil or propane delivery slips, or the therms or kWh on your November through March gas or electric bills. If you don't have them, leave the box empty and the calculator uses the EIA's typical household figure.
Does the calculator include rebates or install costs?
No. It compares running costs only. For install prices see our heat pump and furnace cost guides, and for incentives see our 2026 heat pump incentive guide. Rebates are claimed through a PSEG Long Island participating contractor or directly with PSEG Long Island; confirm current terms at psegliny.com.
Book an assessment
We look at the house, the heating system and the electrical panel, then give you options and a written quote. Call us to book.
(631) 414-7141