Estimate your annual home heating cost based on property size, insulation quality, fuel type and how long you run the heating each day. Uses current Ofgem unit rates.
Last updated: April 2026
Your heating details
Typical UK: Oct–Apr = 7 months
Heating costs
Annual heating cost
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How home heating costs are estimated
This calculator estimates your heating cost based on your fuel type, property size, insulation quality, and usage pattern. It uses current Ofgem price cap unit rates for gas and electricity, and current market rates for oil and LPG. The kWh consumption figures are derived from typical Space Heating Demand data from the Energy Savings Trust, adjusted for insulation quality.
Gas versus electric heating costs
Mains gas remains significantly cheaper per kWh than electricity in the UK - around 6p/kWh for gas versus 24p/kWh for electricity at current Ofgem rates. This means that despite heat pumps being 3–4 times more efficient than gas boilers (producing 3–4 kWh of heat per 1 kWh of electricity consumed), the running cost difference is smaller than the efficiency ratio alone would suggest. At current rates, a heat pump and a modern gas boiler are broadly comparable in annual running cost for a typical home. The economic case for heat pumps improves if electricity prices fall relative to gas, which is expected over the medium term.
The biggest lever: insulation
Of all the variables in this calculator, insulation quality has the largest single impact on heating costs. A poorly insulated older property can cost two to three times as much to heat as a well-insulated equivalent. Loft insulation (£300–£600) and cavity wall insulation (£500–£1,500) are among the most cost-effective home improvements available, with payback periods of 2–5 years. The UK government's Great British Insulation Scheme offers grants for households on certain benefits or with lower EPC ratings.
Frequently asked questions
Mains gas central heating remains the cheapest option for most UK homes in terms of running cost per kWh, at around 6p/kWh. Heat pumps running on electricity are 3–4x more efficient, but electricity costs around 24p/kWh, making the running cost broadly comparable to gas for well-insulated homes. Biomass boilers can be cheaper in rural areas with good wood pellet supply. District heating schemes in some urban areas offer competitive rates. For most homeowners on mains gas, the focus should be on reducing demand through insulation and efficient heating controls rather than switching fuel type.
The Energy Saving Trust estimates that turning your thermostat down by 1°C reduces your heating bill by approximately 10% - around £100–£150 per year for a typical UK home. The saving is larger for poorly insulated properties and smaller for well-insulated ones. Using programmable or smart thermostats to heat the home only when occupied, and ensuring radiator thermostatic valves are set appropriately per room, can deliver similar savings without reducing overall comfort.
For most UK homes, heating on demand - turning the heating on when needed and off when not - is more energy efficient than leaving it on a low continuous setting. The exception is very well-insulated homes where the energy cost of reheating from a cold state is disproportionately high. Smart thermostats that learn your patterns and pre-heat before your arrival represent the optimal approach: the home is at the right temperature when you need it without wasting energy during unoccupied periods.