We Did the Math and Found Money Savings With a Space Heater

Those looking to cut heating bills as the weather cools, have options beyond adding a warm sweater and socks. Keeping your thermostat set to this exact temperature consistently should help, and adding a space heater could tame your heating bill even further.

Whether you use oil, gas, electric or propane to heat your home during winter months, energy costs are one of the biggest expenses for any household. In fact, a recent CNET survey found 78% of Americans said high energy bills are a source of financial stress. To complicate your budget further, it’s projected by some to be a cold winter in the Northeast and Midwest.

Using a space heater in the rooms your occupy most and leaving the thermostat even lower for a portion of the day can trim hundreds off of your yearly spend. This is a particularly viable practice for those who spend a chunk of the day in their home office or spend evenings in an enclosed living room leaving the rest of the house mostly unoccupied.

So how much can you save with a space heater? To find out, we did the math. While there are variables, including regional energy prices, energy type used to heat your home, local climate and home size, we relied on broad national averages to find an answer. It turns out you can save hundreds of dollars — up to $500 if you’re heating a large home with pricey oil.

For more ways to save money this winter, check out five tips to save money on your heating bill, where you should move your thermostat to cut down heating costs and the best energy-saving smart gadgets that will help you cut down your bills.

How much does a space heater cost to run? 

The cost to run a space heater depends on the type of heater that you’ve got, including its size and wattage. A small personal heater can be purchased as cheaply as $20, whereas a full-room heater can run you up to $300, depending on the model and heating capacity. Larger heaters cover more area and are more effective (while smaller heaters in big spaces are inefficient), but also cost more to run. 

You’ll want to consider energy efficiency. This is tricky when it comes to space heaters because they are not currently evaluated by the Environmental Protection Agency’s EnergyStar program. As a result, you’ll have to take the word of the manufacturer. 

Finally, you’ll need to take into account your state or municipality’s electricity rates. This will determine the cost per hour that you can expect to incur by running your space heater. These prices might also dictate how long you’d like to run your space heater. 

On average, you can expect to pay about 20 cents per hour to run a typical space heater that’s 1,500 watts and can heat a standard room such as a home office or bedroom. If you run it for eight hours per day, you’ll pay about $1.60 per day or $48 per month. 

How much does it cost to heat the average home?

Comparatively, the cost to heat a house varies widely, based largely on home size and fuel type. Below is what the US Energy Information Association predicted US households will spend on heating from Oct. 1, 2024, through March 31, 2025 (181 days). The chart of anticipated costs for various fuel types to heat a home in a climate 10% colder than the national average for winter 2024-25.

Can a space heater really lower your energy bill?

While $50 per month sounds like a steal for heating, a space heater is not a full substitute for heating an entire home. But there are plenty of ways to save money using a space heater to supplement your heat and lower your utility bill. 

Home heating isn’t particularly efficient since you’re rarely if ever occupying all rooms. A natural foil for a bloated heating bill is to crank down the thermostat and use a space heater to warm a room you know you’ll be in for an extended period, such as your home office during the day or living room in the evening. 

For this exercise, I’ll calculate how much you could save using a space heater for a third of the day or eight hours. 

Using the figures in the first chart, I’ve calculated the average cost of running a space heater for eight hours versus the cost of running the heat for the entire home using each of the four most popular fuel types. Then I multiplied the cost of each eight-hour total by 181 days (Oct. 1 to Mar. 31). 

From that, we get a snapshot of the cost difference between running a space heater vs. centralized heat, along with potential savings for using a space heater for a portion of the day.

For those using oil or propane as fuel, the savings are significant: $159 for propane and $231.68 for oil through the winter season alone. Those with electric heat save less — about $72 respectively — and folks with natural gas, which is currently cheap, would pay about $36 more than if they ran a space heater. 

But these numbers don’t tell the entire story.

People with larger homes will save more

One big caveat to these numbers for estimated heating costs is that they account for all homes and home types in the US, including smaller apartments and condos. According to Federal Reserve data the average square footage of all homes in the US is about 1,800. 

To heat an average freestanding home with oil, for instance, with a 75,000-BTU furnace, you’re probably looking at a number closer to 50 cents an hour, according to PickHvac’s heating cost calculator. And this is a yearly average; zeroing in on the winter season would only boost that hourly cost more. 

The larger your home, the more it costs to heat and the greater your savings will be if you use a space heater. If your home is twice the size of the average US home, for instance, your savings would likely double if you swapped a space heater in for eight hours. For homes that rely on heating oil, that could amount to savings of more than $500 over the course of a winter.

Households in colder climates will also save more, on average

The figures provided by the Energy Information Association are based on climates just 10% colder than the national average. The EIA numbers represent something of a rough estimate of US heating costs, but ask anyone in North Dakota, upstate New York or Vermont, and they’ll tell you these numbers are decidedly low. Anecdotally, we spoke with Deb Barber from Wakefield, Rhode Island. Barber uses oil to heat a 2,000-square-foot home and reported monthly winter heating bills regularly over $400.

Read more: This New Smart Thermostat That Helps Me Sleep Better Is $50 Off Right Now

If we use a low estimate of 50 cents per hour for heating a freestanding home of about 2,000 square feet with oil during the winter months in a colder climate, the savings for using a space heater for eight hours in place of central heat would jump to over $400 for the season. Swap in more expensive oil, electricity or propane and prorate for the same scenario above (a larger home or apartment and colder climate) and you’re talking about potential savings well into the thousands. 

If you’re looking to add a space heater to cut energy costs, we’ve done some digging to find the best space heaters for 2024, including a budget pick, compact models and the best space heater for large rooms.

How do costs vary based on space heater settings?

On most space heaters, you’ll see an option to adjust the level of heat that the appliance provides. Most have some form of a “low,” “medium” and “high” setting. Typically, what these settings translate to is the amount of the wattage capacity used to heat your room. 

Let’s say you have a space heater that can produce up to 1,500 watts and you place it on the “low” setting, it may only use 750 watts of its capacity. This has an impact on the overall energy consumption that your space heater will require. It can cut the daily cost in half. However, it may limit the heating ability of the space heater. It might be best to use the low setting to maintain warmth and only use the medium or high settings to provide additional heat to save on cost.

Space heaters are handy appliances to have, especially as the weather outside gets frightful and you need to start layering your clothes. But you’ll want to prepare yourself for the cost of using a space heater. An additional $50 per month of utility costs can significantly impact your budget if you aren’t prepared for it. Consider how to best balance your budget and your heating needs to make it through the winter in comfort and without breaking the bank.

How to pick the right space heater

If you’re looking for some extra heat in the winter or to warm up your cubicle in a particularly cold office building, a space heater can be an excellent option. But not all space heaters are made the same. You’ll want to take into account the amount of space that you’re trying to heat, the way they heat the space and the amount of energy they consume.

CNET Survey: 78% of Americans Are Stressed Out About High Energy Bills

For most people, a standard space heater that covers an average room will do the job. These cover about 200 square feet and are usually around 1,500 watts. If you’re looking to heat under a desk or a smaller space, a personal space heater with about 400 or 500 watts will do the job. 

Two mains space heater types to consider

Most space heaters fall into one of two types when it comes to generating heat. There are convection heaters, which work by heating coils that help to heat the air and spread it through the room with a fan. Then there are radiant heaters, which emit infrared radiation to help heat an area. 

Radiant heaters are faster but more focused, whereas a convection heater provides more even heat throughout an area. In small bursts, radiant heaters are more efficient — but in a space that needs to be heated for an extended period, convection can prove to be more effective.

Whichever space heater you choose, make sure to check out our space heater safety guide.

If your utility relies on a time-of-use plan, learn more about peak and off-peak hours to save money. For more, check out the small home upgrade you can make that will save you big money on heating costs, and more easy ways to save money around the house. 

Editor’s note: A previous version of this story was published with 2022-23 energy costs. It has been updated to reflect the US energy cost forecast for 2024-25.