Compare Oil Furnace Installation Costs

Average DIY
$2,060 (Not Recommended)
Average Pro
$4,340
Typical Range
$3,725 – $5,150
Low End
$1,420 (DIY)
High End
$9,200 (Pro)
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The average cost to have a forced air oil furnace installed by a local HVAC professional, is around $4,340. The range of prices is $1,850 to $9,200 based on quality and technical specifications of the equipment, and various installation factors discussed within this page. DIY is not recommended for an oil furnace installation.
Last Updated: Thursday, June 13, 2019

How Much does a New Oil Furnace Cost?

Low
$1,850 – $2,775
Average Cost Estimate
$3,725 – $5,150
High
$7,400 – $9,200
Retail Cost $1,420 – $2,475 $2,300 – $4,135 $5,250 – $8,000
Efficiency (AFUE) 80% – 84% AFUE $84% -87% AFUE 95% – 97% AFUE
Stages of Heat Single Stage Single Stage or 2-Stage Single Stage or 2-Stage
Blower Type Fixed Speed Multi or Variable Variable
Condensing No No Yes
Parts Warranty 5 Years 5-10 Years 5-10 Years
Brand Rating Good | 2-3 Stars Better | 3-4 Stars Best | 4-5 Stars
Supplies $40 – $200 $85 – $300 $200 – $900
Installed By DIY Or Pro Pro Pro
Permit & Inspection $75 – $225 $75 – $225 $75 – $400

The cost comparison above was based on a 1,750 – 2,200 square foot home, with a 140,000 btu oil furnace and forced hot air fan unit installed. Many oil heating systems refer to boilers or hydronic water heating systems. This is not about water heat, but forced hot air oil furnaces.

Sections: Overview | Product Costs | Installation Cost | DIY or Pro | Web Compare | Shared Pricing

forced air oil furnace hvac

Overview of Home Oil Furnace Heating

Oil furnace are primarily limited to the Northeastern US where bedrock conditions make gas pipelines impractical. While this is not true 100% of the time, oil furnaces are much more popular and widespread in that area. For those with options like a portable LP gas tank or access to natural gas, Gas furnaces offer lower prices and apart from two high-end oil furnace brands, better efficiency and climate control.

In short, if you currently have a gas furnace and/or access to affordable natural gas or propane, it is not recommended that you replace it with an oil system.

This Costimate is your comprehensive source for oil furnace replacement cost and the factors that affect cost. We’ve included reader-submitted oil furnace prices, and we hope you’ll come back to share yours when it is installed. Below are cost comparisons from around the Web too.

Related Cost Estimates

Furnace and Supplies Cost Details

Oil Furnace Price Factors

Whether you’ll pay closer to $1,850 or $9,000 for an oil furnace will depend on these factors.

  • Standard vs. Condensing – This is the primary factor in oil furnace price. Major HVAC brands like Carrier, Trane and Lennox manufacture a few non-condensing oil furnace models each. Most have efficiencies in the low to middle 80s. Installed costs are $2,750 to $5,100. Adams and Granby Conforto produce the most efficient oil furnaces available. They are condensing oil furnaces which means they have a secondary heat exchanger to transfer heat in exhaust gases to boost efficiency to 95+ AFUE. Condensing oil furnace cost is $7,700 to about $9,000.
  • Fuel Efficiency (AFUE) – Standard brand oil furnaces range in efficiency from about 82% to about 87%. Cost rises with efficiency.
  • Size – Residential oil furnaces are produced in capacity ranges from about 50,000 BTU to more than 200,000 BTU, and cost rises with capacity.
  • Performance Features – Basic models have single-speed or multispeed fans. Better furnaces have variable speed fans that improve comfort control. If the fan is an ECM blower, the furnace will cost more but the blower will use less power to operate. Just a few oil furnaces have two-stage burners. They increase cost but offer quieter performance and gentler heating when running on the low stage.
  • Warranty – The length of the warranty is sometimes a reflection of quality but may simply be a marketing decision. The longer the warranty, the higher the cost because the company has a greater risk of warranty claims. In general, better oil furnaces have a 10-year parts warranty and a 20-year or lifetime heat exchanger warranty. Some brands will replace the entire furnace if the heat exchanger fails in the first 5 or 10 years.
  • Demand at the Time of Replacement – In the offseason, which is spring and early fall for most HVAC companies, you might find deals on an installed oil furnace. In the middle of winter, costs will be highest.
  • Cost of Living – Large cities and metropolitan areas of the Northeast are expensive places to live, so costs will be higher than in most of the rest of the country. They might be 10-15% lower in rural areas and small towns in the NE.

Retail Cost Range

  • $1,420 – $2,475: 50K-120K BTU oil furnace with basic efficiency (80-84%) and a fixed or multispeed blower.
  • $2,300 – $4,135: 120K-220K BTU oil furnace with a multispeed or variable speed blower and basic efficiency or a smaller furnace with better efficiency (85-87% AFUE) and variable-speed blower.
  • $5,995 – $8,000: Condensing oil furnaces with efficiency of 95% to 97% with variable-speed blowers and additional comfort features.

Cost of Installation Supplies

Regardless of whether this is a brand new or replacement oil furnace or you’re just researching furnace prices, there may be supplies needed during the installation. Most reputable contractors will replace all of this, included in their quote. (Get quotes or advice from local Pros)

The table at the top gives total costs for the furnace, supplies and labor. This section and the next gives itemized costs you might be interested in having.

  • $15 – $40 | Sheet metal for transition / plenum to return and supply air duct.
  • $40 – $760 | New Thermostat.
  • $75 – $250 | Concentric kit, PVC pipe, or B-Vent for furnace flue and fresh combustion air.
  • $25 – $75 | Condensate pump or drain line supplies for 90% or higher AFUE furnaces.
  • $15 – $150 | Oil line supplies for connecting existing line to new furnace.
  • $35 – $75 | Electrical wire, and/or new breaker switch for connecting to power.
  • $35 – $100 | Miscellaneous screws, fasteners, mastic, tape etc.
  • $0 – $750 | Oil Tank rental or purchase. Most oil suppliers offer free tank rental if you buy a minimum amount of heating oil with installation. It’s usually 225 to 400 gallons depending on the size of the tank. Buying an oil tank costs up to $750, but when you own your tank, you can shop around to all suppliers for the best oil prices.

Permits, Inspection, and Furnace Installation Costs

Your oil furnace contractor will need a permit for the installation. The permit includes an inspection to ensure that the furnace is installed correctly for optimum durability and that proper safety measures have been taken to prevent oil and exhaust/carbon monoxide leaks.

  • $50 – $200 ea. | Most oil furnace installation permits include mechanical and plumbing (oil line piping) permits and inspections.

Furnace Installation Labor Factors

Oil furnace installation costs range from about $800 to more than $1,600 based on these factors. The costs in the table above include installation (or DIY installation).

  • Furnace Installation Difficulty – The harder it is to install the furnace, the higher the cost will be. For example, a first-floor or walk-out basement installation is quite easy compared to installing a furnace in an attic or crawlspace.
  • Ductwork Modification – Sheet metal changes to the plenum connection to the ductwork and possibly the ductwork too are common when updating an old oil furnace. Cost rises with the amount of material and labor required.
  • Your location – If you live outside the installer’s normal service area, you can expect to pay a premium for travel costs based on mileage.

Installation Time

  • 1 Day | Simple removal and installation of an oil furnace when there are minimal changes to the oil lines, ductwork and vent flues. You might have to wait one or more days for the local inspector to give the installation approval.
  • 2-3 Days | Systems that require setting a tank, running oil lines, installing new vents or wiring and similar. These issues are most common when in new construction projects rather than

DIY or Hire a Pro

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Unless you’re a licensed HVAC technician, installing your own furnace will probably void the warranty. Trane’s oil furnace warranty is a clear example: “The Products must be properly installed, operated, and maintained by a licensed HVAC service provider… Failure to conform to such specifications and/or instructions shall void this limited warranty.”

For that reason alone, we recommend pro installation. Since the entire job is a major investment – one of the 10 most expensive home repairs – it’s important to do it properly.

If you don’t care about the warranty and are proficient in DIY projects, then installing your oil furnace is an option. If you have a friend with professional installation experience, getting their help might ensure the furnace is installed and tuned for optimum performance and vented correctly to prevent carbon monoxide leaks. Many oil furnaces come with an installation manual that should be closely followed. Be sure to pull a permit and have the furnace inspected for safe installation.

Installing a Furnace is not a DIY Project. What do You Think?

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Get Free HVAC Advice and Cost Quotes from Pros in Your Area

Get Free HVAC Advice and Cost Quotes from Pros in Your Area

Installed Furnace Costs from Around the Web

Compare oil furnace costs from around the web.

Average
Cost Range
Costimates $4,340 $1,850 – $9,000
ImproveNet $4,020 $1,740 – $6,300
HomeWyse $3,131 $1,708 – $8,187
Fixr $4,000 $2,000 – $7,000
HomeAdvisor $5,800 $1,800 – $7,040
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