Ductless heating and cooling system costs vary depending on size, type, and energy efficiency. Their installation is likely to lower your energy bills.
Oil vs. Gas Furnaces
Which is best depends on your situation
Photo: Maskot / Getty Images
Photo: Maskot / Getty Images
Highlights
The average cost to install a gas furnace is $3,800 to $10,000.
The average cost to install an oil furnace is $6,750, to $10,000.
Both options have pros and cons, and where you live is a big factor in determining the best choice.
Get quotes from up to 3 pros!
Enter a zip below and get matched to top-rated pros near you.
If your home isn’t heating as well as it should, or your current HVAC unit is ancient, it may be time to purchase a new furnace. Choosing the right one is important, as it will likely be what you live with for a decade (or longer!).
Both oil and gas furnaces are popular options, and each system has its own pros and cons. There are several different aspects to consider when deciding on the best unit for your home, including factors such as cost and furnace efficiency ratings. Depending on your location, the needs of your household, and your budget, either oil or gas may be the top choice.
Gas vs. Oil Furnaces
As you begin to research furnace options, you will find that oil and gas offer different aspects to consider. When narrowing down to the best choice, make sure to weigh the features they each offer.
Efficiency
Before moving forward with a new furnace purchase, you’ll want to consider the Annual Fuel Utilization Efficiency (AFUE) rating. This rating tells you how efficient your model is compared to other systems on the market, and a higher score indicates better efficiency.
Generally speaking, oil furnaces have efficiency ratings between 80% to 90%, while gas furnaces have ratings of 89% to 98%.
Most efficient: Gas furnaces
Cost
In terms of upfront costs, gas furnaces are priced 10% to 25% more than comparable oil furnaces. That being said, an oil furnace will likely cost more in the long run than gas since oil prices fluctuate frequently, and these systems tend to need more maintenance.
Most affordable: Oil furnaces for upfront costs, gas furnaces for long-term costs
Safety
Because they use fuel sources, both furnaces come with their own set of possible safety concerns. Gas furnaces run the risk of a leak, which can cause carbon monoxide poisoning or even fires. Oil furnaces can also leak, which, in addition to omitting fumes, can potentially harm soil and drinking water.
Safest: Oil furnaces
Pros and Cons of Gas Furnaces
Photo: Angelov / Adobe Stock
Furnaces work by burning fuel to generate heat, and both gas and oil are excellent candidates for warming up your home. Natural gas is a common fuel that many houses use by connecting to a supply line managed by a local utility company.
Gas furnaces are traditionally the typical choice for homes in populated areas, as there is almost always a utility company to take care of the lines.
Pros
Less maintenance: Gas furnaces require less maintenance and repairs over their lifetime.
More affordable: The average gas furnace cost is $3,800–$10,000 to install, and you should expect to pay 50%–100% more for high-efficiency models. Gas furnaces are typically less expensive to run than oil furnaces because of lower fuel costs and higher energy efficiency.
Reliable: Because a local utility company takes care of maintaining lines and supply, gas furnaces tend to offer a reliable heating solution.
Cons
At risk of leaks: A gas furnace leak means running the risk of carbon monoxide emissions or an explosion.
High environmental impact: Most gas furnaces consume a lot of energy since they either run at full capacity or completely shut off.
Poor air quality: Gas furnaces can send dirty particles into the air of a home, particularly if the filter is clogged.
Pros and Cons of Oil Furnaces
Oil heat has many benefits. It is purchased privately, stored in a tank, and usage is monitored by the homeowner, with no utility company involvement. Oil furnaces are most frequently found in colder climates with extreme winter temperatures, such as New England.
Pros
Safety: Oil furnaces don’t emit carbon monoxide, and the fuel source is not highly flammable.
Heat: Oil furnaces have a higher BTU rate per hour, which means a smaller unit can heat a larger space.
Consumer control: Oil furnaces and supplies are completely controlled by the homeowner, with no utility company interference.
Cons
Costs: Oil is a more expensive heating option than gas, and prices fluctuate frequently. Oil furnace installation costs between $6,750–$10,000 on average for a 1,600-to-2,000-square-foot home.
Storage: As a fuel source, oil is messy and must be obtained and stored by the homeowner.
Maintenance: Oil furnaces require more regular maintenance and cleaning than gas systems.
Frequently Asked Questions
The homeowners guide to heating and air conditioning services
From average costs to expert advice, get all the answers you need to get your job done.
How much does a whole-house dehumidifier cost? The final price can vary. Explore our cost guide to see what impacts the price and start budgeting now.
The cost of a new AC unit depends on the size and type. Our guide breaks down AC replacement cost factors so you can decide which option matches your budget.
Keeping your home cool all summer can be a challenge. Read on to learn the pros and cons of dual-home air conditioners.
Does your furnace need a tune up? Use this furnace maintenance checklist to keep things running smoothly.
Trying to choose between a MERV10 versus a MERV12 air filter? Compare filtration, airflow, and allergy protection to find the right fit for your home.