Oil furnace cost
Replacing an oil furnace costs $2,500 to $6,000, about $4,000 on average. If the oil tank also needs replacing, the total is $4,200 to $8,800. High-efficiency condensing oil furnaces cost $3,000 to $10,000 for the unit alone.
Quick answer
$2,500 – $6,000replacement, installed
Most oil furnace replacements cost $2,500 to $6,000. Basic swaps start near $2,200; premium high-efficiency units with a new tank and chimney liner reach about $13,000.
Cost by home size
| Home size (sq ft) | Unit | Installed |
|---|---|---|
| 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 |
- Oil furnace$1,400–$2,80042%
- Installation labor$1,000–$3,00040%
- Permits and inspections$250–$1,50018%
Share of a typical project, using the middle of each range.
Oil tank costs
| Tank | Replace | Remove only |
|---|---|---|
| Above ground (basement) | $1,000 – $4,300 | $400 – $1,500 |
| Underground | $1,600 – $6,200 | $1,000 – $3,500 |
Replace a tank showing rust, weeping seams, wet spots or a failing gauge, or one more than 20 to 25 years old. Insurance companies and buyers often ask about tank age.
Cost by brand
| Brand | Installed |
|---|---|
| American Standard | $2,200 – $5,000 |
| Trane | $2,400 – $6,000 |
| Rheem / Ruud | $2,400 – $7,000 |
| Bryant | $2,500 – $6,900 |
| Carrier | $2,800 – $5,600 |
| Lennox | $2,900 – $6,200 |
| Thermo Pride | $3,300 – $6,200 |
| Adams | $4,100 – $13,000 |
Running costs and alternatives
An oil furnace typically costs $80 to $145 a month to run in heating season, or $1,000 to $2,500 a year depending on home size and oil prices. Many owners switch to gas where a line is available ($3,800 to $12,000+) or to a cold-climate heat pump.
How to get a fair quote
- Get at least three written quotes that list the brand, model number, size (tons or BTU) and efficiency rating.
- Ask whether the price includes permits, removal of the old unit, refrigerant, a new thermostat and any duct or electrical work.
- Ask for a load calculation (Manual J) instead of matching the old unit's size by default.
- Compare labor warranties (1 to 10 years) as well as the manufacturer's parts warranty, and register the equipment.
- Schedule non-urgent work in spring or fall, when contractors are less busy and more willing to discount.
Frequently asked questions
How much does a new oil furnace cost?
About $2,500 to $6,000 installed on average, or $4,200 to $8,800 including a new oil tank.
How long do oil furnaces last?
About 15 to 25 years, sometimes up to 30 with annual cleaning and tune-ups.
Should I replace my oil furnace with gas?
If natural gas is available at the street, conversion often pays back through lower fuel costs, but it costs $3,800 to $12,000+ including tank removal.
Sources
Prices are national averages and typical ranges from published cost data. Your price depends on your home, region, equipment and contractor, so get several written quotes. Heat & Air Costs is not an HVAC contractor; read our disclaimer.