Unit size, labor, permits, efficiency, brand, and additional installations like oil tanks or ductwork can influence total costs.
Operating Costs
Varies by home size; annual costs range between $1,000 – $2,500.
Pros & Cons
Effective in cold climates, high heat output, but may have higher operating and maintenance costs compared to gas systems.
$2,500 – $6,000 Average Replacement Cost
Replacing an oil furnace costs between $2,500 and $6,000 on average. This cost includes the price of the unit, installation labor, permits, and any additional work required.
$3,000 – $10,000 High-Efficiency System Cost
For high-efficiency oil furnaces, expect to pay between $3,000 and $10,000. High-efficiency units have better AFUE (Annual Fuel Utilization Efficiency) ratings, leading to lower operational costs over time.
New Oil Furnace Cost
New Oil Furnace Cost
Home Size (Square Feet)
Unit Cost
Total Replacement Cost
1,300 – 1,600
$1,400 – $2,600
$2,400 – $5,600
1,600 – 1,900
$1,500 – $2,700
$2,500 – $5,700
1,900 – 2,200
$1,600 – $2,800
$2,600 – $5,800
2,200 – 2,600
$1,700 – $3,000
$2,700 – $6,000
2,600 – 3,200
$2,000 – $4,000
$3,000 – $7,000
Average Cost Of New Oil Furnace Installation
Average Installation Cost
Cost Element
Price
National Average Cost
$4,000
Minimum Cost
$2,200
Maximum Cost
$13,000
Average Range
$2,500 to $6,000
Oil Furnace Replacement Cost
Replacement Cost Breakdown
Factor
Average Cost
New Furnace
$1,400 – $2,800
Installation Labor
$1,000 – $3,000
Permits & Inspections
$250 – $1,500
Total
$2,650 – $7,300
Oil Furnace Prices
High-Efficiency Oil Furnace Prices
Type
Price Range
AFUE
Standard Efficiency
$1,200 – $4,000
80% – 87%
High-Efficiency
$3,000 – $10,000
90% – 97%
Best Oil Furnace Prices By Brand
Brand
Unit Cost
Total Replacement Cost
Adams
$3,100 – $10,000
$4,100 – $13,000
American Standard
$1,200 – $2,000
$2,200 – $5,000
Armstrong Air
$1,200 – $4,300
$2,200 – $7,300
Bryant
$1,500 – $3,900
$2,500 – $6,900
Blueridge
$1,500 – $2,000
$2,500 – $5,000
Cost Of New Oil-Burning Furnace By BTU
Furnace Size (BTU)
Unit Price
Total Replacement Cost
60,000
$1,200 – $2,400
$2,200 – $5,400
70,000
$1,300 – $2,500
$2,300 – $5,500
80,000
$1,400 – $2,600
$2,400 – $5,600
90,000
$1,500 – $2,700
$2,500 – $5,700
100,000
$1,600 – $2,800
$2,600 – $5,800
Oil Furnace Installation Cost Factors
Installation Cost Factors
Factor
Average Cost
Old Furnace Removal
$150 – $400
New Oil Furnace
$1,400 – $2,800
Installation Labor
$1,000 – $3,000
Oil Tank Replacement
$1,000 – $6,200
Replacing Ductwork
$1,400 – $5,600
Labor Cost To Replace An Oil Heating System
Labor costs for replacing an oil heating system typically range from $1,000 to $3,000. This cost will vary depending on the complexity of the installation and any additional work required.
Old Oil Furnace Removal And Disposal
Removing and disposing of an old oil furnace can cost between $150 and $400. This cost includes removing the old unit and disposing of it in accordance with local regulations.
Heating-Oil Tank Removal Or Replacement Cost
Oil Tank Removal Or Replacement Cost
Tank Type
Replacement Cost
Removal Only Cost
Above Ground (Basement)
$1,000 – $4,300
$400 – $1,500
Underground
$1,600 – $6,200
$1,000 – $3,500
Oil Furnace Permits And Inspection Fees
Permits and inspection fees for an oil furnace installation can range from $250 to $1,500. Check with your local government for specific requirements.
Cost To Convert Propane Furnace To Oil
Cost To Replace Propane Furnace With Oil
Factor
Average Cost
Removing Old Propane Furnace
$150 – $400
New Oil Furnace Installed
$2,600 – $5,000
New Oil Tank Installed in Basement
$1,600 – $3,800
Permits and Inspections
$250 – $1,500
Total Cost to Convert
$4,600 – $10,700
Operating Cost To Run An Oil Furnace
Oil Furnace Operating Costs
Home Size (Square Feet)
Annual Cost To Run
1,300 – 1,600
$1,000 – $1,300
1,600 – 1,900
$1,300 – $1,500
1,900 – 2,200
$1,500 – $1,750
2,200 – 2,600
$1,750 – $2,100
2,600 – 3,200
$2,100 – $2,500
Oil-Burning Furnace Pros And Cons
Pros And Cons
Pros
Cons
Provides heat efficiently in cold climates
Higher initial installation cost compared to gas furnaces
High heat output per BTU
Lower AFUE ratings than natural gas furnaces
Easier to get repairs and service
Oil prices are more volatile and generally higher than natural gas
Can last up to 30 years with good maintenance
Higher operating costs than gas furnaces
Oil is flammable but not explosive
Requires storage tank, which needs maintenance
Generally produces fewer emissions than gas systems
Creates soot and dirt, requiring more regular maintenance
What Size Oil Furnace Do I Need?
Oil Furnace Sizing Chart
Home Size (Square Feet)
Size Required (BTUs)
1,300 – 1,600
60,000 – 95,000
1,600 – 1,900
72,000 – 115,000
1,900 – 2,200
85,000 – 130,000
2,200 – 2,600
100,000 – 150,000
2,600 – 3,200
115,000 – 190,000
What Is An Oil Furnace?
An oil furnace heats a home by burning heating oil. The oil is sprayed into a combustion chamber where it’s mixed with air and ignited. The produced heat is transferred to the air via heat exchangers, providing warmth throughout the house.
How Long Does An Oil Furnace Last?
An oil furnace typically lasts 15 to 20 years. However, with proper maintenance, some systems can operate for up to 30 years.
When Should You Replace An Oil Furnace?
When To Replace An Oil Furnace Or Tank
Replace An Oil Furnace When:
Replace An Oil-Storage Tank When:
The furnace makes unusual noises.
The tank has damage like rust, dents, or discoloration.
Much more oil burns than usual.
Tank legs are unstable.
Only cool air comes from vents.
The fuel gauge breaks.
Vents blow out excessive dust even after cleaning air filters.
Puddles of oil form under the tank.
The furnace is an older model with asbestos fire bricks in the combustion chamber.
The tank is more than 10 to 20 years old.
Home interior smells like oil.
Cracks appear in the tank lines.
Hiring An Oil Furnace Installer
Questions To Ask
When hiring an oil furnace installer, consider asking the following questions:
Are you licensed and insured?
How much experience do you have with oil furnace installations?
Can you provide references from previous customers?
What warranties do you offer on the furnace and installation?
Will you handle all necessary permits and inspections?
How long will the installation process take?
Can you provide a detailed written estimate?
Asking these questions ensures you hire a qualified professional to properly install your oil furnace, ensuring efficiency and safety.
