Firewood vs Propane: Which Is Cheaper?
With heating costs consuming a significant portion of household budgets, choosing between firewood and propane is more than a lifestyle preference — it is a financial decision that can save or cost you thousands of dollars over a heating season. But comparing the two is not as simple as looking at price tags. You need to account for efficiency, convenience, labor, equipment costs, and regional pricing variation.
This guide presents a thorough, numbers-based comparison to help you determine which fuel makes the most financial sense for your situation. For quick estimates with your local prices, try our BTU calculator.
Understanding the Energy Comparison
To compare firewood and propane fairly, we need to express both in the same unit: cost per million BTU of delivered heat. This accounts for both the energy content of the fuel and the efficiency of the appliance burning it.
Propane Energy Content
- One gallon of propane contains 91,500 BTU
- A modern propane furnace operates at 90-95% efficiency
- Delivered heat per gallon: approximately 82,350-86,925 BTU
Firewood Energy Content
- One cord of seasoned red oak contains approximately 24.6 million BTU
- A modern EPA-certified wood stove operates at 70-80% efficiency
- Delivered heat per cord: approximately 17.2-19.7 million BTU
Real Cost Scenarios
Let us walk through three realistic scenarios comparing the cost to produce 100 million BTU of delivered heat — roughly what a 2,000 square foot home in a cold climate needs for a full heating season.
Scenario 1: National Average Prices
| Factor | Propane | Firewood (Mixed Hardwood) |
|---|---|---|
| Fuel price | $2.50/gallon | $275/cord |
| Energy content | 91,500 BTU/gal | 24 million BTU/cord |
| Appliance efficiency | 92% | 75% |
| Delivered BTU per unit | 84,180 BTU/gal | 18 million BTU/cord |
| Units needed for 100M BTU | 1,188 gallons | 5.6 cords |
| Total fuel cost | $2,970 | $1,540 |
| Cost per million BTU delivered | $29.70 | $15.40 |
Result: Firewood is 48% cheaper at national average prices, saving approximately $1,430 per heating season.
Scenario 2: High Propane / Cheap Wood (Rural Northeast)
| Factor | Propane | Firewood (Oak) |
|---|---|---|
| Fuel price | $3.50/gallon | $250/cord |
| Appliance efficiency | 92% | 75% |
| Units needed for 100M BTU | 1,188 gallons | 5.3 cords |
| Total fuel cost | $4,158 | $1,325 |
Result: Firewood is 68% cheaper, saving over $2,800 per season. This is the scenario where switching to wood makes the most dramatic financial impact.
Scenario 3: Cheap Propane / Expensive Wood (Suburban Market)
| Factor | Propane | Firewood (Mixed) |
|---|---|---|
| Fuel price | $1.80/gallon | $400/cord |
| Appliance efficiency | 95% | 70% |
| Units needed for 100M BTU | 1,149 gallons | 5.95 cords |
| Total fuel cost | $2,068 | $2,380 |
Result: Propane is 13% cheaper in this scenario. When propane is cheap and firewood is expensive, the cost advantage flips.
Break-Even Analysis
The break-even point is where firewood and propane cost the same per million BTU of delivered heat. Using standard efficiency assumptions (92% propane, 75% wood stove), here is the formula:
Break-even cord price = (Propane $/gal) x 214
In other words, multiply your propane price per gallon by 214 to get the maximum cord price at which firewood is still cheaper. Some examples:
| Propane Price ($/gal) | Break-Even Cord Price |
|---|---|
| $1.50 | $321 |
| $2.00 | $428 |
| $2.50 | $535 |
| $3.00 | $642 |
| $3.50 | $749 |
At the most common propane price range of $2.00-$3.00 per gallon, firewood remains cheaper as long as you can buy a cord of quality hardwood for under $428-$642. In most of the United States, that is easily achievable.
Hidden Costs to Consider
The fuel cost comparison above tells most of the story, but there are additional costs on both sides:
Firewood Hidden Costs
- Labor: This is the big one. Splitting, stacking, carrying, loading the stove, and cleaning ash all take time and physical effort. If your time has a high opportunity cost, this matters.
- Chimney maintenance: Annual cleaning and inspection costs $150-$300. Neglecting this is a fire hazard.
- Equipment: Chainsaw ($200-$500), splitting maul or log splitter ($30-$2,000), moisture meter ($25-$50), and ash bucket ($30-$50).
- Storage space: You need a dry, accessible area to stack several cords of wood. This requires dedicated yard space and potentially a wood shed ($200-$1,500 to build).
- Delivery charges: If you do not cut your own wood, delivery adds $50-$100 per cord in some areas.
Propane Hidden Costs
- Tank rental: If you do not own your tank, rental fees run $50-$150 per year.
- Annual furnace service: $100-$200 for a professional tune-up.
- Price volatility: Propane prices can spike 50-100% during cold winters when demand surges. Locking in a pre-season price helps but is not always possible.
- Minimum delivery charges: Many companies require minimum orders of 100-200 gallons, which ties up capital.
The Free Firewood Factor
One scenario tilts the math overwhelmingly in favor of firewood: cutting your own. If you have access to woodland (your own property, a neighbor's, or public land with a cutting permit), your fuel cost drops to nearly zero. A national forest firewood permit typically costs $20-$50 for several cords. Even accounting for chainsaw fuel, bar oil, and wear, free firewood costs roughly $30-$50 per cord in operating expenses.
At that price point, firewood is 85-95% cheaper than propane in every scenario. The trade-off is significant physical labor, but many homesteaders and rural residents consider this a benefit — good exercise and self-sufficiency.
Regional Price Variations
Both propane and firewood prices vary substantially by region:
Northeast (New England, Mid-Atlantic)
Propane: $2.80-$3.80/gallon. Firewood: $250-$400/cord. Firewood is almost always the cheaper option here, and the long heating season amplifies the savings.
Southeast
Propane: $2.00-$2.80/gallon. Firewood: $150-$275/cord. Firewood wins on price, but shorter heating seasons mean the total savings are more modest.
Midwest
Propane: $1.80-$2.80/gallon. Firewood: $175-$300/cord. Generally favorable for firewood, especially in rural areas with abundant wood supply.
Mountain West
Propane: $2.20-$3.20/gallon. Firewood: $200-$350/cord (mostly softwood). The math still favors wood, but softwood's lower BTU means you need more cords. Check our softwood vs. hardwood comparison for species-specific numbers.
Pacific Northwest
Propane: $2.50-$3.50/gallon. Firewood: $200-$325/cord. Douglas fir and alder are affordable and widely available, making firewood the clear winner.
Convenience vs. Cost
Cost is not everything. Propane offers undeniable convenience advantages:
- Thermostat control: Set it and forget it. No loading, stoking, or ash removal.
- Consistent heat: Furnaces maintain even temperatures automatically.
- No physical labor: The truck delivers, the furnace burns, done.
- Clean: No bark debris, no wood chips, no ash disposal.
Firewood, on the other hand, offers:
- Independence: No utility company, no delivery schedule, no price contracts.
- Radiant heat quality: Many people prefer the deep, penetrating warmth of a wood stove over forced-air heating.
- Power outage resilience: A wood stove works when the power goes out. A propane furnace with electric ignition and blower does not.
- Ambiance: Nothing beats a real fire. This is intangible but real.
The Hybrid Approach
Many homeowners find the best answer is both. Use a propane furnace as the primary system for convenience and consistent temperature control, and supplement with a wood stove in the main living area during the coldest months. This approach lets you enjoy the cost savings and ambiance of wood heat while maintaining the reliability of propane as a backup.
A typical hybrid user might burn 2-3 cords of firewood per season while reducing propane consumption by 40-50%. The result is meaningful savings with manageable labor.
Making Your Decision
Here is a simple framework:
- Choose firewood if: You have access to cheap or free wood, enjoy physical activity, live in a rural area with long winters, and want to minimize fuel costs.
- Choose propane if: Convenience is a priority, you have limited storage space, physical limitations prevent wood handling, or propane is unusually cheap in your area.
- Choose both if: You want to balance cost savings with convenience and have a backup heat source for any situation.
Run the numbers for your specific situation using our BTU calculator and check how much firewood you need for winter to estimate your total seasonal cost. Whichever option you choose, understanding the true cost per BTU ensures you are making an informed decision.