A pellet stove burns compressed wood pellets fed by an auger, with fans to move the heat. Its running cost comes down to the price of a ton of pellets, how much heat a ton holds, and how efficiently the stove burns it.
A ton of quality pellets holds about 16.5 million BTU, and an EPA-certified pellet stove is about 78% efficient. At an example $300 a ton, that's heat for about $23.31 per million BTU: less than propane, oil or electric resistance, about the same as a heat pump, and more than natural gas.
Cost per million BTU of heat
Cost per million BTU = price per ton ÷ 16.5 ÷ 0.78:
| Pellet price | Cost per million BTU of heat |
|---|---|
| $250 a ton | $19.43 |
| $300 a ton | $23.31 |
| $350 a ton | $27.20 |
The 16.5 million BTU per ton and 78% efficiency are the values in the U.S. EIA's Heating Fuel Comparison Calculator, as published by New York's energy authority; New Hampshire's energy department gives the same heating value for pellets at 5 to 10% moisture.
Against other fuels
| Heat source | Assumption | Cost per million BTU |
|---|---|---|
| Natural gas furnace, 95% | $1.35 per therm | $14.21 |
| Pellet stove, 78% | Example: $300 a ton | $23.31 |
| Heat pump, HSPF2 8.2 | 18 cents per kWh | $21.95 |
| Oil furnace, 85% | Example: $4.00 a gallon | $33.98 |
| Propane furnace, 95% | Example: $3.00 a gallon | $34.53 |
| Electric resistance | 18.19 cents per kWh | $53.31 |
The oil, propane, gas furnace and heat pump efficiencies here are example assumptions; use your own equipment's rating.
Pellets beat oil, propane and electric resistance at these prices, roughly tie a heat pump, and cost more than natural gas. See gas vs. electric heating cost.
Cost per hour, per day, and by the bag
At the example $300 a ton, the 2,000 pounds in a ton work out to $0.15 a pound, or $6.00 for a standard 40-pound bag (a ton is 50 bags). Running cost then tracks the feed rate you set, which is the pounds of pellets the auger drops per hour. The table converts a range of feed rates to cost at that price; match your stove's low, medium and high settings to the row.
| Feed rate | Per hour | Per day (24 h) | Pellets per day | Bags per day |
|---|---|---|---|---|
| 1 lb/hr | $0.15 | $3.60 | 24 lb | 0.6 bag |
| 2 lb/hr | $0.30 | $7.20 | 48 lb | 1.2 bags |
| 3 lb/hr | $0.45 | $10.80 | 72 lb | 1.8 bags |
| 4 lb/hr | $0.60 | $14.40 | 96 lb | 2.4 bags |
| 5 lb/hr | $0.75 | $18.00 | 120 lb | 3.0 bags |
A $6.00 bag holds 40 pounds, so it lasts about 40 hours at 1 pound an hour and about 8 hours at 5 pounds an hour. An overnight stretch at 1 pound an hour costs a dollar or two, while a full day at 5 pounds an hour approaches $18. These figures scale straight from the price: at $250 a ton they drop about 17%, at $350 a ton they rise about 17%.
Pellet grade, moisture and ash
The 16.5 million BTU per ton assumes pellets at 5 to 10% moisture. Wetter pellets hold less usable heat, because some of the burn's energy boils off the extra water instead of warming the room, which lowers both the BTU per ton and the effective efficiency. Keeping pellets dry protects the heating value you paid for.
Ash content drives how often you clean rather than the fuel bill. Lower-ash pellets leave less residue in the burn pot and venting, so the stove holds its rated efficiency longer between cleanings. Premium and standard grades differ mainly in that ash level.
How many tons per season?
A 2,000 sq ft home with average insulation in a climate with 4,500 heating degree days needs about 58 million BTU of heat a year, from the same heat-loss model as our furnace size calculator. Heating all of it with pellets would take about 4.5 tons, roughly $1,359 at $300 a ton. Most pellet stoves heat part of a house, so a stove heating half the space would use about 2.3 tons.
Pellet stove vs wood stove and electric fireplace
An electric fireplace is electric resistance heat, so it runs at the electric-resistance line in the table above: about $53 per million BTU at 18.19 cents a kWh. That is more than double the roughly $23 for pellets at $300 a ton, so a pellet stove is far cheaper to run for steady heat. See electric heater running cost.
A wood stove burns split cordwood instead of pellets and needs no electricity, so it keeps heating in a power outage; a pellet stove's auger and fans stop without battery backup. Cordwood has no standardized national price the way bagged pellets do, and self-cut wood can be nearly free, so a dollar-for-dollar comparison depends heavily on your wood source. Wood also has to be seasoned dry before it burns cleanly, while pellets arrive kiln-dried at 5 to 10% moisture.
Electricity
A pellet stove needs electricity for its auger, fans and igniter, and it stops in a power outage unless it has battery backup. As an example, a stove averaging 100 watts around the clock for 150 days uses 360 kWh, about $65 at 18 cents per kWh. Check your model's rated power.
Maintenance, ash and storage
Beyond pellets, a stove needs regular cleaning to keep burning efficiently. Every week or so you empty the ash pan and clear the burn pot; a few times a season you clean the glass, heat exchanger and venting. Many owners also book an annual professional service before the heating season.
Ash volume is small because pellets burn nearly complete, so disposal is usually a matter of sealing cooled ash in a metal container. Storage is the bigger logistical demand: a ton is 50 bags that must stay dry, since moisture ruins both the fuel and its heating value.
Tax credits
The federal 25C credit for biomass stoves, 30% up to $2,000, ended for equipment installed after December 31, 2025. See HVAC tax credits 2026.
Frequently asked questions
How much does it cost to run a pellet stove?
At an example $300 a ton, about $23 per million BTU of heat. Heating a typical 2,000 sq ft home entirely with pellets would take about 4.5 tons a season, around $1,359.
Is a pellet stove cheaper than a gas furnace?
Usually not. At $1.35 per therm, gas heat costs about $14.21 per million BTU against about $23 for pellets at $300 a ton.
Is a pellet stove cheaper than electric heat?
Than electric resistance heat, yes, by more than half. Against a heat pump, it's about even.
How long does a ton of pellets last?
It depends on how much heat you need. Spread over an assumed five-month heating season, the 4.5 tons for a typical 2,000 sq ft home work out to about 0.9 tons a month, more in the coldest months; a stove heating part of the house goes further.
How many bags of pellets per day?
It depends on your feed rate. At the example $300 a ton ($6.00 a 40-pound bag), 1 pound an hour uses a little over half a bag a day (24 pounds), 3 pounds an hour uses about 1.8 bags, and 5 pounds an hour burns about 3 bags, 120 pounds, in 24 hours.
How much does it cost to run a pellet stove for 24 hours?
At $300 a ton ($0.15 a pound), a full day comes to about $3.60 at 1 pound an hour, around $7 to $11 at 2 to 3 pounds an hour, and about $18 at 5 pounds an hour. Your daily total depends on the feed rate your stove runs.
Pellet stove vs wood stove: which is cheaper to run?
It depends on your wood source. Bagged pellets have a fairly standardized price, so pellet running cost is predictable; cordwood ranges from nearly free if you cut your own to a delivered premium, so a wood stove can come out cheaper or dearer than pellets. A wood stove also needs no electricity, while a pellet stove draws power for its auger and fans.