About Oil to Gas Price Calculator (Formula)
An Oil to Gas Price Calculator is a tool used to compare the costs of heating a home or building using oil versus natural gas. This calculator helps individuals or businesses assess the financial implications of switching between these two energy sources for heating purposes.
The formula for calculating the cost comparison between oil and gas heating involves considering the efficiency and energy content of both fuels:
Oil Cost per Million BTUs = Oil Price per Gallon / (Efficiency × Energy Content per Gallon)
Gas Cost per Million BTUs = Gas Price per Therm / Efficiency
Where:
- Oil Cost per Million BTUs is the cost of heating per one million British Thermal Units (BTUs) using oil.
- Oil Price per Gallon is the cost of a gallon of heating oil.
- Efficiency is the efficiency of the oil heating system, usually expressed as a decimal.
- Energy Content per Gallon is the energy content of a gallon of heating oil in BTUs.
- Gas Cost per Million BTUs is the cost of heating per one million BTUs using natural gas.
- Gas Price per Therm is the cost of a therm of natural gas.
- Efficiency is the efficiency of the natural gas heating system, usually expressed as a decimal.
To use the Oil to Gas Price Calculator formula, follow these steps:
- Determine the oil price per gallon and the efficiency of the oil heating system.
- Determine the energy content per gallon of heating oil.
- Determine the gas price per therm and the efficiency of the natural gas heating system.
- Plug the values into the respective formulas for oil and gas costs per million BTUs.
- Compare the calculated costs to assess which option, oil or gas heating, is more cost-effective.
Factors such as regional energy prices, local taxes, and equipment efficiency can influence the cost comparison. It’s important to consider not only the immediate cost savings but also long-term trends and potential maintenance expenses.