Heating & Cooling · Midwest
Cost to run a electric furnace in Indiana
At Indiana’s average residential rate of 18.15¢ per kWh, a electric furnace drawing 15000W for 6 hours a day costs about $224 a month. Change the numbers below to match how you actually use yours.
Winters in Indiana are cold enough that a electric furnace will carry real load from late autumn through early spring, then sit idle for the rest of the year. Spreading the annual cost evenly across twelve months therefore flatters the summer months and understates the winter bill.
Quick answer
Based on 15000W at a 45% duty cycle (this equipment cycles on and off rather than drawing full power continuously) and 18.15¢/kWh, the Indiana average for May 2026.
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— per year
Why the cost differs in Indiana
Indiana has the 32nd cheapest residential electricity of the 51 US states and territories we track, at 18.15¢ per kWh against a national average of 18.44¢. That is -1.6% compared with the national figure. Indiana is midway through a coal-to-gas and coal-to-renewables transition, and the capital cost of that changeover is being recovered through successive rate cases, which is why rates have drifted upward from a historically cheap base. Retail service is regulated. The climate gives a genuine dual peak, with cold winters and humid summers both driving load.
For this appliance specifically, the difference works out to a saving of $42.87 a year against what the same electric furnace would cost at the national average rate. Run the identical appliance in Hawaii and it would cost $7,687 a year; in Idaho it would cost $1,826. That spread of $5,861 is entirely down to location.
At Indiana's rate this single electric furnace accounts for roughly 141% of a typical household's entire annual electricity bill. It is not a rounding error on your statement - it is one of the largest single line items in it.
Indiana sits below the national average, so this electric furnace costs slightly less to run here than it would for a typical US household. How you use it will move the number far more than where you live.
Retail service in Indiana is regulated, so most households pay a tariff set through state rate cases rather than a shopped rate. The state average is a reasonable proxy, though your utility's specific tariff still varies.
| Location | Rate | Per month | Per year |
|---|---|---|---|
| Indiana this page | 18.15¢ | $224 | $2,683 |
| US average | 18.44¢ | $227 | $2,726 |
| Idaho cheapest state | 12.35¢ | $152 | $1,826 |
| Hawaii most expensive | 52.00¢ | $641 | $7,687 |
Indiana electricity rate trend
Rates in Indiana have moved from 16.48¢ to 18.15¢ per kWh over the last twelve months of published data. Nationally, residential rates rose about 6.2% year over year.
2025-06 to 2026-05 · cents per kWh
About running a electric furnace
Electric resistance furnaces are the most expensive common way to heat a home. At 10 to 20 kilowatts they dwarf every other load in the house, and in high-rate states the winter cost can exceed the rest of the bill combined.
What actually changes the cost
- Nameplate wattage is not running cost. This electric furnace draws about 15000W when active, but cycles roughly 45% of the time it is switched on, so effective consumption is near 6750W.
- At typical use this is a major load - around 14,783 kWh a year. Efficiency upgrades here pay back faster than on any small appliance.
- Insulation and air sealing reduce runtime, which lowers cost more reliably than adjusting the thermostat by a degree.
- If your utility offers time-of-use pricing, shifting this load off-peak can cut its cost substantially without using any less energy.
How we worked this out
The arithmetic is simple and we would rather show it than hide it. Divide watts by 1,000 to get kilowatts, multiply by hours of use and by the duty cycle to get kilowatt-hours, then multiply by your rate:
15000W ÷ 1000 × 6h × 45% = 40.500 kWh/day × 18.15¢ = $7.351 per day
One honest caveat: Indiana’s figure is a state average published by the EIA. Your own utility’s tariff, any time-of-use pricing, fixed monthly service charges and local taxes all shift the real number. Put your actual per-kWh rate into the calculator above for a figure that reflects your bill.
Questions about electric furnace running costs
How many watts does a electric furnace use?
A typical electric furnace draws about 15000 watts while running, with most models falling between 10000W and 20000W. Check the nameplate label or manual for your specific unit - the range is wide enough that averages can mislead.
How much electricity does a electric furnace use per day?
At around 6 hours of use a day and a 45% duty cycle, that works out to roughly 40.5 kWh per day, or about 1215 kWh a month. Your actual figure depends on your usage and model.
Why does the cost differ so much between states?
Residential electricity rates across the US range from about 12.35 cents per kWh in North Dakota to 46.62 cents in Hawaii - nearly a fourfold difference. The same electric furnace, used identically, therefore costs almost four times as much to run in the most expensive state as in the cheapest.
Is it cheaper to run a electric furnace at night?
Only if you are on a time-of-use or variable tariff. On a flat rate, the time of day makes no difference to cost. If you are on time-of-use pricing, off-peak hours are typically materially cheaper, and shifting this load can reduce its cost without reducing usage.