With electric bills increasing by 25% in the last three years, households are on the search for the most cost-effective way of heating. So which is cheaper, a fan heater or an oil heater? Below we’ll figure this out.
But first, consider our other articles about home energy savings.
- Oven vs Air Fryer
- Electric Heaters vs Radiators
- Wood Burning Stove vs Central Heating
- Dishwasher vs Hand Washing
- Tax Credits for Energy-Efficient Home Improvements
Oil Heater: Cost to buy
For a 1,500-watt oil heater, you can expect to pay anywhere from $50 to as much as $250.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Oil heater: Cost to run
According to Home Inspection Insider, running a 1,500-watt oil heater costs an average rate of 10 cents an hour. If you run your heater for eight hours a day, it would cost you around $25 a month.
Oil heater: Pros and cons
1. You have the flexibility of shopping around for one at the right price for you.
2. Most come with temperature control which is a nice plus. This function can help you cut energy costs, whereas a fan heater is either on or off.
3. Oil heaters have good heat retention. When you turn the oil heater off, it doesn’t cool off immediately thus still radiation heat. Less energy is required to heat your room, cutting even more of your energy bill.
4. When heating a room, this typically makes the air dry. Oil heaters retain good airflow allowing for warmth and clear air without drying you out. According to Healthline, dry air can increases the risk of health issues. These can range from asthma and respiratory problems to dehydration, especially in the winter.
5. Oil heaters only provide a short-term solution. If you're trying to maintain heat in a room for more than a couple of hours, you’d be better off turning on your central heating.
6. Oil heaters circulate air slowly. It means it might take some time to heat larger rooms.
Fan heater: Cost to buy
For a 1,500-watt fan heater, you can expect to pay anywhere from $50 to as much as $150.
Fan Heater: Cost to run
Fan and oil heaters are different types of electric heating. According to CNET, running a fan heater costs around 20 cents an hour. This is for a 1,500-watt heater being used in a “standard” room. Say you’re home eight hours a day, you would spend around $50 a month.
Fan heater: Pros and cons
1. You have the flexibility of shopping around for one at the right price for you.
2. Some come with temperature control which is a nice plus, but these tend to be more expensive. However, being able to control the heat output of your fan heater means you can also better control your energy use and costs.
3. They're more portable: Allowing you to move them between rooms with ease.
4. The size of your room: If you have a large room or one with high ceilings, it’s going to be harder (and more expensive) to heat that room with just a fan heater. Judge the size of the room you need to be heated beforehand so you can purchase the correct size of a fan heater.
5. Insulation of your home: This is a big one. If your home isn’t insulated properly the heated air released will easily escape. As you can guess, a fan heater will be less effective without adequate insulation. This is where you are wasting the most money.
6. Fan heaters are known to give off short-term heat. When you turn it on, it will immediately start to heat your room, quickly filling the fan but once you turn it off, the heat will fade. If you want to heat a room temporarily, a fan heater is a good idea but again, the heat you get will not maintain and for many, this isn’t adequate especially during frigid days.
The verdict
It’s clear that fan heaters tend to cost less than oil heaters (when comparing models with the same wattage.) But the big question is, which will lower your energy bill?
Oil heaters.
They cost around half the amount to run than fan heaters do. Other benefits include better heat retention, safer use, and less dried-out air.
When planning on investing in a new heater, whether it’s oil or fan, make sure your room has a good level of insulation so it can retain heat better.
If you’re able to pay a bit more, you should consider an oil heater the overall winner.
Related Content
-
Time Is Running Out to Make the Best Tax Moves for 2025Don't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
4 Smart Ways Retirees Can Give More to CharityFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
If You Do One Boring Task Before Year-End, Make It This OneWho wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial Adviser
For retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)
Who wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
Should You Tap Your Home Equity Before 2026?As borrowing rates and tax law shifts converge, here's what homeowners need to know before pulling equity out of their home.
-
'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently DisagreesYour financial plan should be aligned with your values and your politics. If your adviser refuses to talk about them, it's time to go elsewhere.
-
For a Move Abroad, Choosing a Fiduciary Financial Planner Who Sees Both Sides of the Border Is CriticalWorking with a cross-border financial planner is essential to integrate tax, estate and visa considerations and avoid costly, unexpected liabilities.
-
21 Money Moves Smart People Are Making Before 2026These steps can help trim your tax bill, boost your savings, lower your health care costs and set you up for financial success in 2026.
-
A Financial Adviser's Guide to Divorce Finalization: Tying Up the Loose EndsAfter signing the divorce agreement, you'll need to tackle the administrative work that will allow you to start over.
-
Uber Takes Aim at the Bottom Lines of Billboard Personal Injury LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
