How much will it cost to run your heater in winter 2025?

How much does it cost to run a heater in winter?

We looked at running costs for 70 electric heaters and 10 gas heaters to work out how much it would cost you to heat your home this winter.

Your actual costs may be higher or lower depending on a variety of factors, including:

• How often you use your heater - somebody living in Melbourne may use their heater more often than a household in Brisbane.
• The actual price you pay for electricity or gas from your energy provider.
• How many heaters you're running at any given time.
• The level of insulation in your home.

• How we calculated average winter heating costs

  We compared 80 heaters across 8 categories with a 4-star rating or above from customers. These included 10 gas heaters and then 70 electric heaters: ceramic heater, convection heater, fan heater, oil-filled column heater, panel heater, radiant bar heater and reverse-cycle air conditioner.

  To calculate how much it costs to heat a home during winter:

  • We first multiplied every heater's input power by the average electricity or gas cost per state or territory. This gave us the hourly running cost.
  • We multiplied this by 4.4 hours of daily use (as per our Consumer Sentiment Tracker) over 90 days to get the overall winter heating cost.
  • Our calculations for reverse-cycle air conditioners were slightly different. Reverse-cycle air conditioning is 300% to 600% more energy efficient. So we divided the power input by 3, using the lower end of the range (300%) to keep estimates conservative.

  Electric heaters

  Heater type	Average hourly usage (kW/h)	Hourly running cost	Winter running cost (4.4 hours per day)
  Ceramic heater	1.90	$2.70	$242
  Convection heater (electric)	2.12	$3.02	$270
  Fan heater	1.99	$2.83	$253
  Oil-filled column heater	1.99	$2.83	$253
  Panel heater	2.00	$2.85	$254
  Radiant heater (electric)	2.04	$2.90	$259
  Reverse cycle air conditioner	3.67	$1.74	$155

  Gas heaters

  Heater type	Average hourly usage (MJ/h)	Hourly running cost	Winter running cost (4.4 hours per day)
  Gas heater	16.26	$3.46	$301

  Average cost of electricity and gas used (accurate as of May 2025)

  State/Country	Average cost of electricity (cents per kWh)	Average cost of gas (cents per MJ)
  NSW	34.79c/kWh	5.18c/MJ
  VIC	24.98c/kWh	4.06c/MJ
  QLD	32.4c/kWh	3.86c/MJ
  SA	43.46c/kWh	6.47c/MJ
  ACT	31.1c/kWh	4.62c/MJ
  TAS	27.32c/kWh	N/A
  NT	28.66c/kWh	N/A
  WA	31.58c/kWh	N/A
  Australia	32.34c/kWh	$4.84c/MJ

  Costs are an estimate only. Your actual running costs may be different. They can be affected by multiple factors including actual usage, level of insulation in your home, climate and prices.

Winter heating costs by state

We love a little state-by-state comparison to see where people are paying more in the country.

It's not helpful to see your friends in Victoria being charged less while you're suffering in South Australia, but it can be a good benchmark of sorts.

Keep in mind: We had to skip WA because their pricing structure makes calculations a bit more complicated. We didn't include the NT and TAS in the second graph as there are very few households connected to gas.

What type of heater is the cheapest to run?

According to our calculations reverse-cycle air conditioners are the cheapest way to stay warm this winter.

This comes down to their energy efficiency.

While other electric and gas heaters have to use energy to "make" heat, a reverse-cycle system actually "takes" heat from outside of your home and releases it to warm a room. Isn't science wonderful?

Just keep in mind that running costs for a reverse-cycle air conditioner will increase depending on the capacity of the air conditioner and the size of the room you're heating.

Upfront costs are also high if you don't already have one installed. However, they can significantly save you money in the long run.

• What are the other benefits of reverse-cycle air conditioners?

  Warming in winter, cooling in summer. Because a reverse-cycle air conditioner can perform both functions, you no longer have to worry about swapping over appliances each season or storing the unused appliance.

  • Cleaner air. Some air conditioners have purification features and filter the air, removing pollutants and dust as air passes through them.
  • Less noise. Compared to traditional electric or gas heaters, some reverse-cycle air conditioners make a lot less noise.
  • Cheapest form of heating to run. Compared to all types of electric portable heaters and gas heaters reverse cycle air conditioners are far cheaper.

How much will it cost to run your heater in winter 2025?

While the exact cost of running your heater depends on what you pay for energy, you can get a rough idea of the cost based on the wattage or megajoules. Here we have calculated the hourly cost of running a heater (by wattage or megajoules) based on the median energy price.

What are the differences between electric and gas heaters?

There are many variables at play when considering if electric heating is cheaper or more expensive than gas.

How else can I reduce my winter energy bills?

Finder's Consumer Sentiment Tracker has found 7 million Australians are desperate to save money this winter. This isn't a surprise given energy bills is the third most stressful expense faced by Australian households.

Besides looking for a cheaper, and more energy efficient heater, consider:

• Switching energy providers. It's likely you're missing out on significant savings if you haven't compared and switched energy plans in over 12 months.
• Using electric blankets. When it comes to staying warm, an electric blanket is actually the cheapest option according to our analysis, costing just 4 cents a day to run.
• Switch things off. When you turn an appliance off, it's still using power in standby mode. It might not be much but the cost can quickly add up. Make sure to turn off electric devices at the powerpoint. It's a small habit change that could save you $100 a year.
• Keep an eye out for rebates and concessions. Contact your energy provider if you're unsure what types of rebates you're eligible for. Some run for longer periods while others are short-term. For example, the federal government will be giving all Australian households $300 in energy bill relief from 1 July. The Queensland government will be giving all households in the state $1,000 as energy rebate, also from 1 July.
• Add extra insulation to your home. This will keep your home warm in winter and cool during the summer. It's expensive but pays for itself in a few years as your appliances such as heaters or air conditioners don't have to work as hard to get to the temperature you're comfortable with. Less energy consumption equals lower energy bills. A cheaper option, particularly for renters, is to make changes to your window coverings.

Frequently asked questions

• How much does it cost to run an electric blanket compared to a heater?

  Electric blankets are much cheaper than electric or gas heaters and can cost as little as 4 cents an hour to run.

  Just ensure you take safety precautions, especially if you have younger kids using them.

• How do I calculate heater running costs?

  Calculating your heater's running cost is simple and the first step before shopping around for a cheaper one.
  1. Find the label that describes the input power in MJ for gas or kW for electricity.
  2. Check your power bill for the usage rate you're paying for your gas or electricity.
  3. Multiply the input power by the usage rate to find your running cost per hour.

  What if I want to know the cost for the whole of winter?
  To calculate an estimate of how much you'll pay to run your heater over the whole of winter, just take your formula a few steps further.

  4. Take the running cost per hour and multiply it by the number of hours you think you'll use the heater each day.
  5. Multiply that figure by 90 (the number of days in winter) to get your total winter running cost.

  Your total winter cost all up will be higher or lower depending on if you bought a new heater or already had one. Simply add your retail price and your total winter running cost and you'll have your full heating and appliance cost figured out.

• What are the different types of heaters?

  There are broadly 3 types of heaters available:

  Gas heaters

  Gas heaters are typically capable of heating a room faster than an electric heater. They come in 2 types: convection and radiant convection.

  Convection gas heaters draw in cold air and heat it via a gas-powered element which is then released back into a room. Radiant convection heaters have an element that is slightly exposed, providing more focused heating.
  Due to the risk of carbon monoxide, Australian laws require some gas heaters to have a flue to vent any emissions. This makes them less portable.

  Portable electric heaters

  There's a greater variety of electric heaters and unlike gas heaters, they tend to be highly portable.
  Convection and panel electric heaters work similarly to gas heating drawing in cold air, heating it via an element and dispersing it back into the room.

  Oil-filled column heaters use electricity to heat oil inside a column which slowly heats the room. They can heat the room slower than other heaters.

  Fan heaters blow hot air at a single location while tower heaters are similar but typically oscillate, spreading hot air around the room in an arc.

  Reverse-cycle air conditioners

  Reverse-cycle air conditioners can be a good investment as they can heat in winter and cool in summer. They may have different energy efficiency ratings for heating and cooling and will typically use more power to heat than cool.

Written by

Mariam Gabaji

Senior Utilities Editor & Tech Expert

Mariam Gabaji is a journalist with 13 years of experience, specialising in consumer topics like mobile services and energy costs. Her work appears in the ABC, Yahoo Finance, 9News, The Guardian, SBS, 7News, A Current Affair and Money Magazine. Mariam holds a Bachelor of Arts in Journalism and was a finalist for the 2024 and 2025 IT Journalism Award for Best Telecommunications Journalist. See full bio

Mariam's expertise

Mariam has written 435 Finder guides across topics including:

• Energy
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Co-written by

Joshua Godfrey

Senior Insights Analyst

Joshua Godfrey is a Senior Insights Analyst at Finder, specialising in data analysis and identifying emerging trends through the Consumer Sentiment Tracker, a monthly survey on Australians' financial attitudes. He has authored Finder’s 2024 Wealth Building Report and 2025 First Home Buyer Report which have been widely quoted in top media outlets like the AFR and news.com.au. With a Bachelor of Business in Finance and Marketing and a Diploma of Creative Intelligence from UTS, Josh is passionate about uncovering patterns in consumer sentiment and exploring how they influence the future of finance. See full bio

Joshua's expertise

Joshua has written 40 Finder guides across topics including:

• Data and analytics
• Money trends
• Data journalism