Canada Heating Oil Cost Calculator
Heating oil cost calculator for Canadian homes in Atlantic Canada and Quebec. Enter your tank size, oil price, and furnace efficiency to estimate monthly and seasonal heating costs, plus compare to heat pump alternatives.
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Current heating oil price in your area
Typical oil furnace: 80-85%. New high-efficiency: 90-95%.
Result
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Canadian heating oil cost calculator focused on Atlantic provinces where oil heating is most common. Average heating oil price approximately $1.60/L in Atlantic Canada. Typical home uses 2,500 to 3,500 litres per year depending on size, insulation, and climate zone. Federal carbon tax adds approximately 17 cents per litre. Oil furnace efficiency ranges from 78% (old) to 86% (modern). The Oil to Heat Pump Affordability (OHPA) program provides up to $10,000 for switching from oil to a heat pump. Nova Scotia, New Brunswick, Newfoundland, and PEI have the highest oil heating rates in Canada.
Disclaimer: This calculator uses publicly available rules effective as of Jan 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: Apr 1, 2026.
Formula
Calculates total litres of heating oil consumed per season based on tank size and refill frequency, multiplied by the current oil price. Furnace efficiency (typically 80% to 85%) accounts for heat lost up the chimney. The heat pump comparison converts oil energy to equivalent electricity using a COP of 2.5 to 3.0.
Canada FAQs
How much does heating oil cost per year in Atlantic Canada?
At current prices of approximately $1.60 per litre, a typical Atlantic Canadian home using 3,000 litres per year spends $4,800 annually on heating oil. In cold winters, usage can reach 3,500 litres or more, pushing annual costs above $5,600. This makes oil heating one of the most expensive home heating methods in Canada.
How much carbon tax is on heating oil?
The federal carbon charge on heating oil is approximately 17 cents per litre. For a home burning 3,000 litres per year, the carbon tax adds about $510 annually. This is higher per unit of heat than the carbon tax on natural gas because heating oil produces more CO2 per unit of energy delivered.
What is the OHPA program for switching from oil heat?
The Oil to Heat Pump Affordability (OHPA) program provides up to $10,000 to help homeowners in Atlantic Canada and other oil-dependent regions switch from oil furnaces to cold-climate heat pumps. The grant covers the cost of the heat pump, installation, and removal of the old oil tank. Income-qualifying households may receive the full $10,000.
How much can I save by switching from oil to a heat pump?
Switching from heating oil at $1.60/L to a cold-climate heat pump in Nova Scotia (electricity at 15.5c/kWh) saves approximately $1,500 to $2,500 per year. In New Brunswick (13.5c/kWh), savings are $2,000 to $3,000 per year. After the OHPA grant of up to $10,000, the switch often pays for itself in 2 to 4 years.
Why is heating oil still common in Atlantic Canada?
Approximately 30% of homes in Nova Scotia, 40% in New Brunswick, 50% in Newfoundland, and 55% in PEI still use heating oil. Natural gas pipelines do not reach most rural Atlantic communities. Many homes were built before natural gas infrastructure existed in the region. However, the federal OHPA program and rising oil prices are accelerating the switch to heat pumps.
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