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BACKGROUND: The tetrahydrofuran–ethanol azeotrope cannot be separated by common distillation, but can be effectively separated by extractive distillation. Extractive distillation can be simulated by Aspen Plus software. The minimum annual cost of the process can be calculated to assess ionic liquid separation ability. The interaction energy can be used to explain the separation mechanism. RESULTS: The non‐random two‐liquid model parameters of ternary mixtures for tetrahydrofuran and ethanol containing tributylmethylammonium acetate or 1‐octyl‐3‐methylimidazolium acetate were obtained. Thermodynamic property databases of tributylmethylammonium acetate, 1‐hexyl‐2,3‐dimethylimidazolium acetate and 1‐octyl‐3‐methylimidazolium acetate were established. Based on the thermodynamic model parameters and properties, the sequential iterative method was used to determine the best operating conditions and minimum total annual cost the of extractive distillation process. The interaction energy was calculated to explain the separation mechanism. CONCLUSIONS: The separation performance of tributylmethylammonium acetate is better than that of 1‐hexyl‐2,3‐dimethylimidazolium acetate or 1‐octyl‐3‐methylimidazolium acetate. The selection and design of the ionic liquids can be conducted in terms of the interaction energy. © 2023 Society of Chemical Industry (SCI). [ABSTRACT FROM AUTHOR]