Running a patio heater can cost anywhere from $0.17 per hour on electric to over $3.00 per hour on propane, making your choice of fuel the biggest factor in your outdoor budget. You might find a fantastic deal on a heater online, but the cheapest patio heater to run is rarely the cheapest one to buy.
Many homeowners and restaurant managers get hit with sticker shock not at the cash register, but when their utility bill arrives or they have to swap out their third propane tank of the month.
If you are researching the average patio heater fuel costs per hour 2026, you must calculate the big picture. To make the smartest choice for your outdoor space, you have to look beyond the purchase price and calculate the Total Cost of Ownership (TCO).
This guide breaks down the true cost of propane, natural gas, and electric patio heaters, giving you the exact formulas you need to estimate your hourly running costs based on local rates.
The Quick Answer: Which Fuel Type Wins?
You cannot rank patio heaters by a universal hourly cost because local utility rates vary wildly. However, as a general rule of thumb:
- Electric Heaters: Typically have the lowest hourly running cost (e.g., ~$0.17 to $0.45/hour) but may require hiring an electrician for high-voltage setups. Best for targeted, enclosed, or semi-enclosed spaces.
- Propane Heaters: Usually have the lowest upfront cost but the highest hourly running cost ($1.32 to $3.00/hour) due to tank exchange premiums. Best for ultimate portability and open areas.
- Natural Gas Heaters: Have the highest upfront cost (due to professional gas line installation) but offer very low hourly costs ($0.28 to $1.20/hour). Best for permanent, open-air luxury patios and commercial spaces.
1. The Sticker Price Illusion: Upfront & Installation Costs
Comparing the cost of propane vs. electric patio heaters starts with the equipment and installation. A sticker price alone never captures the full picture.
- Propane: A standard freestanding mushroom heater might only cost $150 to $300. There are zero installation costs. Even if you upgrade to premium, high-output commercial models like the Bromic Tungsten Portable or the evenGLO (which range from $1,995 to $2,500+), you still avoid installation fees.
- Electric: Portable 120V plug-in models are highly affordable. However, high-output 240V or hardwired electric setups—like the sleek, flush-mounted models from Infratech—require a qualified professional electrician to install dedicated circuits, which can push total system costs over $2,000.
- Natural Gas: These require a permanent, underground gas line to be plumbed to your patio. You must hire a licensed plumber or gas fitter, pull permits, and pay for labor, making this the most expensive initial setup (often $2,000 to $5,000 total).
2. How to Calculate Your Exact Hourly Running Costs
Because energy prices fluctuate based on where you live, the only way to know what a heater will cost you is to do a little simple math. Grab your local utility bill or check the price of a propane exchange at your local hardware store, and use these formulas.
⚡ Electric Heater Cost Formula
(Heater Wattage ÷ 1,000) × Local Electricity Price per kWh = Hourly Cost
Example: If you buy a 1,500W electric heater and your local electricity rate is a fairly average $0.1827 per kWh:
(1,500 ÷ 1,000) = 1.5
1.5 × $0.1827 = $0.27 per hour
💨 Natural Gas Heater Cost Formula
The EIA uses approximately 1,036,000 BTUs per thousand cubic feet (MCF) of natural gas.
(Heater BTU rating ÷ 1,036,000) × Price per MCF = Hourly Cost
Example: A 40,000 BTU/h natural gas heater running on a residential rate of $15.86 per MCF:
(40,000 ÷ 1,036,000) = 0.0386
0.0386 × $15.86 = $0.61 per hour
🔥 Propane Heater Cost Formula
Propane contains roughly 91,452 BTUs per gallon. To find your cost, you need to know what you pay per gallon of propane (divide the cost of a tank refill by the gallons it holds).
(Heater BTU rating ÷ 91,452) × Delivered Propane Price per Gallon = Hourly Cost
Example: A standard 40,000 BTU/h freestanding propane heater uses about 0.44 gallons of fuel per hour at its maximum setting (40,000 ÷ 91,452 = 0.44). If you pay $4.00 per gallon for propane, your cost is:
0.44 × $4.00 = $1.76 per hour
3. Heat Output: BTUs vs. Watts (And What It Means for Comfort)
When looking at operating costs, you also have to consider what you are getting for your money. Propane and electric patio heaters deliver warmth entirely differently.
Electric Infrared Heaters deliver targeted, radiant heat. Like the sun, they warm people and solid objects directly rather than trying to heat the air. There is no direct patio heater BTU to watts conversion for measuring physical comfort, but mathematically, 1 watt equals 3.41 BTUs. For more on maximizing this efficient heat, check out our guide to the Best Electric Heaters for Covered Patios.
Gas Heaters (Propane and Natural Gas) rely on a mix of radiant heat and convection. A tall mushroom heater pushes heat outward, but a large portion of that hot combustion gas rises straight up. Gas heaters are traditionally better suited to expansive, open outdoor areas where guests are spread out.
4. Hidden Costs: Maintenance, Logistics, and Safety
Your time and peace of mind are also worth money. Consider the logistical differences between these fuel types.
- Propane Logistics: The true cost of a propane heater includes the time spent driving to the hardware store and lugging heavy cylinders around. You also must have a permitted outdoor storage area. Read our full safety guide on Where to Safely Place Your Propane Heater for clearance rules.
- Ventilation Safety: Outdoor fuel-burning heaters produce carbon monoxide. They must never be used in enclosed spaces like garages or screened-in porches. Because it produces zero emissions, an electric infrared unit is the only true indoor safe patio heater.
- Maintenance: Gas heaters require regular checks for gas leaks, spider webs in the burner tubes, and thermocouple replacements. Electric heaters are largely “set it and forget it.”
5. The 3-Year ROI Comparison: Finding Your Break-Even Point
When does a higher upfront cost actually pay off? Let’s look at a hypothetical 3-year scenario for a homeowner who runs their patio heater for 100 hours per season (300 hours total).
| Heater Type | Upfront + Install Cost | Cost Per Hour | Fuel Cost (300 Hrs) | Total 3-Year Cost |
|---|---|---|---|---|
| Basic Propane Mushroom | $200 | $1.76 | $528 | $728 |
| Basic Electric Plug-in (120V) | $200 | $0.27 | $81 | $281 |
| Premium Hardwired Electric (240V) | $1,200 (Includes $700 Electrician) | $0.55 | $165 | $1,365 |
The Takeaway: If you only plan to use your patio heater for a few football games a year, the cheap upfront cost of a portable propane heater makes sense. However, if you compare the basic propane unit to the basic electric plug-in unit, electric pays for itself in a single season due to the massive fuel savings.
For restaurant owners or heavy users running a heater 500+ hours a year, even the $1,200 premium hardwired electric setup will break even against propane very quickly, saving thousands of dollars in the long run.
Key Takeaways
- Use your own utility bills: Plug your local electricity and delivered gas prices into our formulas to get your true hourly cost.
- Factor in installation: Don’t forget that 240V electric models and natural gas heaters require professional, paid installation.
- BTUs don’t equal comfort: A heater’s BTU rating measures fuel consumption, not necessarily how warm your specific seating area will feel.
- Safety first: If your patio has walls, a roof, or screens, an electric infrared heater is the safest, zero-emission choice.
Frequently Asked Questions
Which is cheaper to run: electric or propane patio heaters?
In almost all regions of the United States, an electric patio heater is significantly cheaper to run per hour than a propane heater. Depending on your local utility rates, a standard electric heater may cost roughly $0.17 to $0.45 per hour, whereas a standard 40,000 BTU propane heater will cost between $1.32 and $3.00 per hour based on tank refill prices.
What is the average purchase price of a patio heater?
Prices vary drastically based on commercial vs. residential grading. Basic portable electric or propane heaters can be found for $150 to $300. Premium, hardwired electric infrared systems or commercial-grade permanent natural gas heaters range from $500 to well over $2,000, not including professional installation.
How long will a 20lb propane tank last on a patio heater?
A standard 20lb propane tank holds about 4.7 gallons of propane (roughly 430,000 BTUs total). If you run a standard 40,000 BTU patio heater on its maximum “High” setting, the tank will last approximately 10 to 11 hours. Turning the heater down to a lower setting will extend the life of the tank.
Disclosure: As an Amazon Associate, I earn from qualifying purchases. Product specifications sourced from manufacturer data and Amazon product listing.
