Finance Tools

Heating Oil Prebuy vs Pay-As-You-Go Comparison Calculator

Compare heating oil prebuy plans vs pay-as-you-go pricing by estimating total seasonal cost under each option, including price assumptions and optional fees.

Heating Oil Prebuy vs Pay-As-You-Go Comparison Calculator

Compare a locked-price prebuy plan against expected pay-as-you-go seasonal pricing. Includes optional opportunity cost for paying upfront.

Use last season’s total gallons if available. Otherwise estimate from monthly usage × season months.

Prebuy (Locked Price)

Enter the prebuy contract/locked price.
If there’s no fee, enter 0.

Pay-As-You-Go (Market Price)

Use your best estimate of the average price across the heating season.
Delivery fees or minimum charges can be approximated here.

How it works

Prebuy total = seasonal gallons × locked price + prebuy fee (+ optional opportunity cost). Pay-as-you-go total = seasonal gallons × expected average market price + fees. The difference estimates whether prebuy is worth it under your assumptions.

FAQ

How do I estimate the pay-as-you-go average price?
Use last season’s average, a local supplier forecast, or test multiple scenarios (low/medium/high).

Should I always include opportunity cost?
If you’re paying several months ahead and could otherwise earn interest, it makes the comparison more realistic.

How to use this heating oil prebuy vs pay-as-you-go comparison calculator

  1. Enter your expected total seasonal gallons.
  2. Enter the prebuy locked price per gallon and any prebuy fee.
  3. Enter your expected average pay-as-you-go price per gallon and any fees.
  4. Click Calculate to compare total seasonal cost and the difference.

Example

Compare a prebuy locked price vs expected market price for the season.

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