Reviewed and Verified by David Chen, CFA
Use the Cost per Million BTU Calculator to quickly compare the true, normalized energy cost of different fuel types (natural gas, electricity, fuel oil, etc.), ensuring you make the most economical choice.
Cost per Million BTU Calculator
The calculated Cost per Million BTU is:
Calculation Details:
Cost per Million BTU Calculator Formula:
The standard formula for calculating Cost per Million BTU (CPMB) is:
CPMB = (Fuel Unit Cost / Energy Content per Unit) × 1,000,000 Formula Source: U.S. Energy Information Administration (EIA) Additional Reference: U.S. Environmental Protection Agency (EPA)Variables:
- Fuel Unit Cost ($/Unit): The price you pay for a specific volume or measure of fuel (e.g., $/gallon, $/therm, $/kWh, $/cord). This is the direct cost from your utility bill or vendor.
- Energy Content (BTU/Unit): The energy density of the fuel, measured in British Thermal Units (BTU) per unit. This value is critical as it normalizes the fuel’s heating power.
- Cost per Million BTU ($/MMBTU): The final calculated value, representing the equivalent cost required to purchase 1,000,000 BTUs of thermal energy.
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What is Cost per Million BTU?
Cost per Million BTU ($/MMBTU) is the gold standard metric for comparing the true economic value of different energy sources. Since fuel prices are quoted in various units (e.g., cents per kWh for electricity, dollars per gallon for oil, or dollars per cubic foot for natural gas), it is nearly impossible to make an apples-to-apples comparison without a normalized unit.
By converting the cost of every fuel source into the price of one million BTUs, you are comparing them based purely on their heating or energy output. This normalization eliminates the confusion caused by different volumetric or weight measurements, allowing homeowners and facility managers to identify the most cost-effective heating or power option available to them at any given time.
How to Calculate Cost per Million BTU (Example):
Let’s find the CPMB for propane, assuming a price of $2.50 per gallon.
- Identify the Energy Content: A gallon of liquid propane typically contains approximately 91,400 BTUs.
- Set the Variables: Fuel Unit Cost (UC) = $2.50. Energy Content (EC) = 91,400 BTU.
- Apply the Formula: $$\text{CPMB} = (\text{UC} / \text{EC}) \times 1,000,000$$
- Perform the Calculation: $$\text{CPMB} = (\$2.50 / 91,400) \times 1,000,000$$
- Result: $$\text{CPMB} \approx \$27.35$$ (The cost of 1 million BTUs of energy from propane is $27.35.)
Frequently Asked Questions (FAQ):
Is a lower CPMB always better?
Yes. CPMB represents the cost of the energy itself. A lower CPMB means you are paying less for the same amount of useful thermal energy, making that fuel source more economical than alternatives with a higher CPMB.
Why is BTU different for every fuel?
BTU (British Thermal Unit) measures the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit. Different fuels, like natural gas, wood, and electricity, have different energy densities (how much energy is packed into a specific volume or mass), hence their BTU per unit varies significantly.
Can I use this calculator for electricity?
Absolutely. For electricity, the unit cost is typically in $/kWh. You just need to convert kWh to BTU. The conversion rate is approximately 3,412 BTUs per kWh. Use this number for the Energy Content input.
What is the typical CPMB range?
The range varies dramatically by location, time of year, and fuel type. Generally, natural gas and coal tend to have lower CPMBs, while propane and electricity can have higher CPMBs. You must use current, local pricing for an accurate comparison.