Oil Furnace Installation Costs – How Much You Should Pay

When it comes to oil furnace installation costs, having an idea of how much you should pay ahead of time will help you plan for the expense.   The cost of installation can equal or even exceed the cost of the furnace itself.  There are several factors that can affect oil furnace installation costs.  We look at those as we provide a cost range for the job.

Factors Affecting Oil Furnace Installation Costs

Removal of an Old Furnace: If you are replacing an older furnace, it will have to be disconnected, removed and properly disposed of.  That aspect of the job can cost up to $500.  If there is no old furnace to remove, your cost for installation will be less.

Time and Materials: Furnace contractors base their written estimates on the amount of time and materials they believe the job requires.  The location of the oil furnace will affect how much time it takes to install it.  Installation in a spacious basement or first-floor utility room will be less time-consuming than installation in a cramped crawlspace or in an attic.  In terms of material, a new plenum, new oil pipe or a new exhaust vent will all add to the cost of the job.

Time of Year: Heating and air conditioning contractors have busy times of the year, which vary somewhat based on the area’s climate.  When they are busiest, their installation costs tend to be highest.  When business is slower, they are more inclined to offer discounts or negotiate a lower price in order to keep working.  While you can’t always choose when you have a new furnace installed, you’ll save up to 15% on installation if you can get estimates during a slower time of year.  If you have an older furnace that is running, but needs replacing, you can take advantage of this “off season” opportunity to save money.

Oil Furnace Installation Costs

Here are installation cost ranges based on the factors mentioned.

No old furnace to remove, minimal time and materials, off season: $1,200-$2,000

No old furnace to remove, minimal time and materials, in season: $1,500-2,400.

Old furnace removal, heavy time and materials, off season: $1,800-$2,800

Old furnace removal, heavy time and materials, in season: $2,000-$3,500


Keep in mind that the cost of living in your area and the level of competition among dealers will also affect the oil furnace installation costs you pay.  Whether you are gathering oil furnace prices or installation costs, it always makes sense to get at least 3 estimates from contractors with a good reputation.  You’ll save money and have the opportunity to evaluate which contractor you believe will do the best job for you. . .

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