Is it better to use oil or butter in baking?

December 7, 2025 •

4 min read

Butter is comprised of about 80% fat and 20% water and milk solids, whereas oil is 100% fat. This fundamental difference is key to understanding whether it is better to use oil or butter in baking for your specific recipe, as each provides distinct results in flavor, texture, and structure.

Quick Summary

This guide breaks down the functional differences between butter and oil in baking, exploring how each impacts texture, flavor, and moisture. Understand which fat to use for flaky pastries, moist cakes, or tender cookies based on your desired outcome and recipe requirements.

Key Points

Flavor vs. Moisture: Butter delivers a rich, creamy flavor, while oil provides superior, long-lasting moisture.
Structure and Texture: Butter's solid nature allows for creaming, creating airy pockets and structured crumbs; oil produces a more tender, delicate crumb by inhibiting gluten.
Recipe-Specific Choice: Use butter for recipes demanding flakiness (pie crusts) or a strong buttery flavor (shortbread), and oil for moist, tender baked goods (carrot cake, quick breads).
Mixing Matters: The creaming method requires butter, not oil. Oil-based recipes involve simply whisking wet and dry ingredients.
Smart Substitutions: When replacing butter with oil, use a 3:4 ratio and be aware of the potential texture and flavor changes.
Temperature Impact: Butter cakes firm up when chilled, whereas oil cakes remain soft and moist, making them ideal for refrigeration.

Understanding the Core Differences: Butter vs. Oil

The choice of fat is one of the most critical decisions a baker makes, significantly impacting the final product. Both oil and butter serve the essential functions of providing moisture, richness, and tenderness. However, their physical and chemical compositions lead to vastly different outcomes. Butter, being a solid fat at room temperature, can be creamed with sugar to trap air, a technique that is impossible with liquid oils. This creaming process is responsible for the light, fluffy texture of many cakes and cookies. In contrast, oil's liquid state ensures it coats flour particles more thoroughly, which inhibits gluten formation and results in a softer, more delicate crumb.

The Role of Butter in Baking

Butter's unique composition of fat, water, and milk solids gives it distinct advantages. The water content produces steam during baking, which aids in leavening and helps create flaky layers in pastries like croissants and pie crusts. The milk solids caramelize during baking, contributing to a rich flavor and a golden-brown crust. The creaming method, where room-temperature butter and sugar are beaten together, creates a fine crumb and a lofty texture, crucial for cakes and many cookie recipes. However, this same attribute means that butter-based baked goods can become hard and dry when refrigerated, as the saturated fat solidifies.

The Role of Oil in Baking

Oil, being 100% fat, is a superior choice for achieving maximum moisture and tenderness. Because oil is liquid at room temperature, it keeps baked goods moist and soft for a longer period compared to butter. It is the secret behind the moist, feathery crumb found in many popular cakes, like carrot cake and banana bread. Oil also allows other flavors to shine, making it ideal for recipes where you want the chocolate, spices, or fruit to be the star. The mixing method for oil-based baked goods is simpler, often just whisking the oil with wet ingredients before combining with dry ones. However, oil cannot be creamed, so recipes relying on that technique for lift and structure will fail with an oil substitution.

How to Choose: What Are You Baking?

The decision ultimately depends on the desired outcome. For a rich, buttery flavor and a tender, structured crumb, butter is the superior choice. This is especially true for recipes using the creaming method or those where flakiness is desired. For maximum moisture and tenderness, particularly in heavily-flavored items like chocolate cake or quick breads, oil is the better option.

Use Butter for...
- Flaky pie crusts and pastries, like croissants.
- Chewy, soft-centered cookies with crisp edges.
- Rich, flavorful cakes where creaming is used.
- Shortbread, where the buttery flavor is paramount.
Use Oil for...
- Moist cakes, such as carrot, chocolate, or spice cake.
- Tender, soft muffins and quick breads.
- Recipes where the primary flavor is not buttery.
- Dairy-free or vegan baked goods.

The Best of Both Worlds: Combining Butter and Oil

Many bakers find that using a combination of butter and oil can yield the best of both worlds. A common strategy is to replace a portion of the butter with oil to get the best moisture while still retaining the buttery flavor and some structure. For example, some chocolate cake recipes will include both fats to ensure a moist result that is intensely chocolatey, while still having some richness from the butter. This technique allows for experimentation and personalization.

Comparison Table: Oil vs. Butter in Baking


Feature	Butter	Oil
Physical State	Solid at room temperature	Liquid at room temperature
Flavor Profile	Rich, creamy, and distinctively buttery	Neutral flavor (canola/vegetable) or distinct (olive/coconut)
Final Texture	Denser, structured, and can be flaky or chewy	Softer, more tender, and moist
Moisture Retention	Can dry out over time, especially when refrigerated	Provides excellent moisture that lasts longer
Mixing Method	Requires creaming for certain recipes for lift	Simply whisked with wet ingredients
Primary Function	Contributes flavor, structure, and leavening	Primarily provides moisture and tenderness

Making Substitutions and Recipe Adjustments

While butter and oil are not always interchangeable, substitutions can be made with some understanding of their differences. When replacing butter with oil, a good rule of thumb is to use 3/4 the amount of oil for every 1 cup of butter, as butter contains water. Some recipes, particularly those relying on the creaming method, are not well-suited for a complete butter-to-oil switch. If experimenting, a 50/50 blend can provide a safe middle ground. Conversely, swapping oil for melted butter is a more direct 1:1 replacement in many recipes. Always consider the overall goal of the recipe before making a swap. You can learn more about ingredient substitutions from reputable baking resources like King Arthur Baking.

Conclusion: The Final Verdict

There is no single answer to whether it is better to use oil or butter in baking; the best choice depends entirely on your desired result. For an intensely rich, classic buttery flavor, structured texture, and flaky layers, butter is the undisputed champion. For recipes requiring deep moisture, a tender crumb, and long-lasting freshness, oil is the clear winner. By understanding the distinct chemical and functional differences between the two, you can make an informed choice that elevates your baked goods from good to great. Experimenting with a combination of both can also open up new possibilities for flavor and texture, allowing you to fine-tune your recipes to perfection.

Frequently Asked Questions

No, you cannot substitute oil for butter in all recipes. It works best in recipes that don't rely on the creaming method for leavening and structure, such as quick breads or muffins. Recipes for flaky pastries or structured cookies require butter's unique solid-state properties.

As a general guideline, use 3/4 the amount of oil for every 1 cup of butter called for in a recipe, and consider adding a little extra liquid to compensate for butter's water content. However, this substitution may still alter the texture and flavor of the final product.

Oil is more effective at making cakes moist than butter. Since oil is 100% fat and liquid at room temperature, it coats flour and inhibits gluten formation more effectively than butter, resulting in a more tender and moist crumb.

Using both fats allows bakers to achieve the best qualities of each. The butter provides rich flavor and some structure, while the oil ensures maximum moisture and tenderness. This is common in recipes like chocolate cake where you want both a deep flavor and a moist texture.

Butter provides a richer, creamier flavor that is often desirable, especially in baked goods where the fat is a prominent flavor component like shortbread or vanilla cake. Oil, unless a flavored variety like olive oil is used, typically provides a more neutral flavor.

For cookies, butter is generally preferred. It creates a richer flavor and helps achieve the desirable balance of chewy centers and crispy edges. Cookies made with oil tend to be more cake-like in texture.

Creaming butter and sugar works by incorporating tiny air bubbles into the fat. These air pockets expand during baking, contributing to a light, fluffy rise and tender crumb. Oil, being liquid, cannot trap air in this way, which is why oil-based baked goods rely on chemical leaveners for lift.