How to Substitute Olive Oil for Butter in Baking

Aug 6, 2025

Switching butter for olive oil in baking is simple and offers benefits like improved moisture, longer shelf life, and a healthier fat profile. Here's how to do it:

  • Use 3/4 the amount of olive oil compared to the butter in your recipe (e.g., replace 1 cup of butter with 3/4 cup of olive oil).
  • Add extra liquid (like water or milk) if needed to balance moisture since olive oil lacks butter's water content.
  • Pick the right olive oil: Mild or fruity varieties work best for sweet baked goods, while stronger ones suit savory recipes.

Olive oil shines in cakes, muffins, and quick breads but isn’t ideal for flaky pastries or crisp cookies. It produces moist textures, softer crusts, and enhances flavors like chocolate or citrus. Avoid overpowering flavors by choosing a neutral olive oil for delicate recipes. With this simple substitution, you can create healthier, flavorful baked goods every time.

Replace butter with olive oil in your dessert recipes

How Butter and Olive Oil Work Differently in Baking

Knowing how butter and olive oil behave in baking can help you make better substitutions and predict how they’ll influence your baked goods. Let’s break down how each fat contributes to texture, moisture, and flavor.

What Butter Does in Baking

Butter, made up of about 80% fat and 20% water and milk solids, plays a big role in both the structure and flavor of baked goods. When you cream butter with sugar, it creates tiny air pockets that help leaven your cakes and cookies. During baking, the water in butter turns to steam, which contributes to flaky textures. Additionally, the milk solids in butter promote browning, giving your baked goods that rich, golden color.

However, there’s a catch: butter solidifies when chilled. This means cakes made with butter can feel drier after refrigeration. As Daniel Montano explains:

"More importantly, texture will change. Butter has about 15% moisture in it which oil doesn't. This is important."

How Olive Oil Is Different

Unlike butter, olive oil is 100% fat and doesn’t contain water or milk solids. Because of this, it can’t be creamed to create air pockets, resulting in a denser crumb. But that’s not necessarily a downside. Olive oil has a standout quality: it excels at retaining moisture. With far less water content than butter, olive oil helps baked goods stay moist for longer periods. Charlotte Andrew highlights this contrast:

"Butter lacks the moisture the oil provides, and oil lacks the flavor that butter provides."

When used in baking, olive oil produces a softer crust and crumb compared to butter, which tends to create a crispier texture. It also leaves a glossy, thinner surface on baked goods.

Characteristic Butter Olive Oil
Fat Content 80% fat, 20% water and solids 100% fat
Texture Result Lighter, airier crumb Denser, more moist crumb
Moisture Retention May dry out when refrigerated Stays moist longer
Leavening Effect Creates air pockets Does not create air pockets
Browning Promotes golden browning Results in milder browning

Flavor is another key difference. Butter has a rich, distinct taste that can sometimes overpower delicate flavors like citrus or chocolate. On the other hand, olive oil’s fruity, grassy undertones can enhance and complement these ingredients. Tessa Arias, Chef and Cookbook Author, shares her opinion:

"There are no surprises here: butter tastes better than oil in baking recipes."

Even with this sentiment, many bakers appreciate olive oil for the moistness it brings and its ability to pair beautifully with bold flavors. It’s a great alternative when used in the right recipes. Next, we’ll dive into how to substitute butter with olive oil seamlessly in your baking.

How to Replace Butter with Olive Oil: Step-by-Step Guide

Switching out butter for olive oil is a breeze and can result in baked goods that are both moister and more flavorful.

Conversion Ratios and Measuring Tips

The key to replacing butter with olive oil is to use three-quarters (3/4) of the amount called for in the recipe. For example:

  • If a recipe needs 1 cup of butter, substitute with 3/4 cup of olive oil.
  • For a stick of butter (8 tablespoons), use 6 tablespoons of olive oil instead.

This works because butter is about 20% water, while olive oil is pure fat. Accurate measurements are crucial here - too much olive oil can make your batter too thin. Use liquid measuring cups for larger amounts and measuring spoons for smaller quantities. Also, pay attention to whether the recipe specifies solid or melted butter, as this affects the volume.

Butter Amount Olive Oil Substitute
1 teaspoon 3/4 teaspoon
1 tablespoon 2-1/4 teaspoons
1/4 cup (1/2 stick) 3 tablespoons
1/2 cup (1 stick) 1/4 cup + 2 tablespoons
3/4 cup 1/2 cup + 1 tablespoon
1 cup (2 sticks) 3/4 cup

With these ratios in mind, you’re ready to adjust your baking process based on how the butter is used.

Step-by-Step Replacement Process

The way you use olive oil depends on the role butter plays in your recipe:

  • For recipes that cream butter and sugar: Mix olive oil with the wet ingredients instead. Combine it with eggs, milk, or other liquids first, then add this mixture to your dry ingredients. This prevents a greasy texture.
  • For recipes calling for melted butter: Simply replace the melted butter with olive oil at the same step in the recipe.
  • For recipes using room-temperature butter: Blend olive oil with vanilla, eggs, or milk to ensure it’s evenly distributed. This reduces the risk of separation and keeps the batter smooth.

Stir the batter just until combined to avoid a dense or heavy texture.

Best Recipes for Olive Oil Substitution

Olive oil works best in baked goods where moisture and flavor are key. Try it in:

  • Moist cakes
  • Quick breads
  • Muffins
  • Coffee cakes
  • Pound cakes
  • Cupcakes

These recipes benefit from olive oil’s ability to retain moisture and enhance flavor. However, avoid using olive oil in recipes that rely on the structure of solid fats, such as puff pastry, croissants, or traditional butter cookies. For cookies, it’s better suited to soft and chewy varieties rather than crisp ones.

When choosing recipes, opt for those that naturally produce moist and dense results to let olive oil shine without sacrificing texture.

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Getting the Right Flavor and Texture

Choosing the right olive oil and tweaking your recipe can elevate your baked goods, giving them fantastic flavor and just the right texture.

Picking the Right Olive Oil for Baking

For light baked goods, mild or fruity extra virgin olive oils are your best bet. They blend seamlessly into recipes without overwhelming the other flavors. Steer clear of refined olive oils labeled "light" or "pure", as these tend to lack flavor and offer fewer health perks.

If you're baking something sweet, Arbequina olive oil is a standout choice. Its smooth, fruity notes, with hints of apple and banana, can enhance cakes and muffins beautifully. On the other hand, Hojiblanca olive oil brings subtle hints of almond, grass, and apple with a slightly bitter, spicy edge, making it ideal for heartier breads and savory treats. Arbequina offers a milder, more rounded flavor, while Hojiblanca adds a layer of complexity to bold recipes.

When choosing an olive oil, think about how it pairs with the other flavors in your recipe. Citrus-forward olive oils can elevate a lemon cake, while nuttier options work wonders in chocolate desserts. Thanks to its relatively high smoke point (between 374°F and 405°F), extra virgin olive oil can handle most baking temperatures with ease.

Fixing Moisture and Structure Issues

Once you've chosen your olive oil, you may need to adjust your recipe to account for its unique properties. Olive oil is 100% fat, whereas butter is about 80% fat, with the remaining 20% being water. This difference can affect both moisture and texture.

To make up for the lack of water in olive oil, add an extra ¼ cup of liquid - such as milk or water - for every cup of butter you replace. This adjustment helps maintain the right level of moisture in your baked goods.

"As a general rule of thumb, I replace the butter with 3/4 of the amount of olive oil. Then I increase the liquids by 1/4 the amount."

For a balanced texture, try starting with a 50/50 mix of butter and olive oil. This combination allows you to enjoy the moisture olive oil provides while still achieving the tender crumb that butter contributes. Also, be mindful not to overmix the batter - mix just until the ingredients come together to avoid a dense or tough final product.

Flavor Changes Based on Olive Oil Type

The type of olive oil you use can have a big impact on the flavor of your baked goods. Stronger olive oils naturally bring more pronounced flavors, so consider your recipe's other ingredients when making your selection.

Big Horn Olive Oil offers several varieties that work wonderfully for baking. Their Estate Reserve Ultra Premium EVOO delivers a balanced flavor that suits a wide range of recipes. For heartier baked goods, the Picual and Coratina varieties bring robust, peppery notes. Feeling adventurous? Try their infused options - imagine a lemon-infused olive oil in a pound cake or a rosemary-infused oil in a savory bread.

The key is to match the intensity of the olive oil with the type of baked good. Mild oils are perfect for delicate cakes, while stronger, peppery varieties shine in rustic breads. Always taste your olive oil before using it to get a sense of its flavor profile. While the flavor will mellow slightly during baking, it adds a depth and richness that butter alone can't achieve.

Conclusion: Improve Your Baking with Olive Oil

Swapping butter for olive oil can completely change the game for your baked goods, making them healthier and more moist.

As mentioned earlier, olive oil brings nutritional perks that butter simply can't match. Packed with oleic acid, it helps reduce inflammation, fights cancer-related processes, and offers antioxidants that butter lacks. Plus, with less saturated fat, olive oil lets you whip up indulgent treats that feel a little less indulgent.

"Olive oil works beautifully in baking and can be a fantastic substitute for butter, adding moisture and a subtle richness to the dish. The key is choosing the right type; mild, neutral-tasting olive oils blend seamlessly into baked goods without overpowering the flavors. It's a great way to introduce a healthier fat while enhancing texture, whether in cakes, breads or muffins." – Vivek Salunkhe

Baked goods made with olive oil offer a tender crumb and stay moist longer than those made with butter.

For best results, try Big Horn Olive Oil's Ultra Premium EVOO. Their Estate Reserve variety provides a balanced flavor that works well in a wide range of recipes. Feeling bold? The Picual and Coratina varieties bring robust, peppery flavors that are perfect for hearty breads or savory baked treats.

Interestingly, the U.S. olive oil market is projected to grow at a compound annual rate of 7.4% from 2025 to 2030. This trend highlights what more and more home bakers are realizing: olive oil isn't just a replacement for butter - it's an upgrade.

With these tips in mind, start experimenting with the 3:4 conversion ratio and liquid adjustment techniques we covered earlier to take your baking to the next level.

FAQs

What type of olive oil is best for baking different treats?

When it comes to baking, extra virgin olive oil (EVOO) is an excellent option thanks to its rich quality, fresh taste, and added health perks. For desserts like cakes or muffins, go for a mild, fruity EVOO - Arbequina olive varieties are a solid choice as they blend seamlessly without overwhelming the sweetness. On the other hand, for savory or more adaptable recipes, a neutral EVOO with a balanced profile works perfectly.

To get the most out of your olive oil, stick to options labeled "extra virgin" for their superior purity and freshness. Proper storage is key - keep your EVOO in a cool, dark spot, ideally in a dark glass bottle, to maintain its flavor and quality. Premium brands, such as Big Horn Olive Oil, can take your baked goods to the next level with their outstanding taste and freshness.

How does using olive oil instead of butter affect the texture and moisture of baked goods?

When it comes to baking, butter and olive oil behave quite differently. Butter has about 15–17% water, which turns into steam as it bakes, helping create a lighter, airier texture. Olive oil, on the other hand, is 100% fat with no water content. This difference means baked goods made with olive oil often have a denser, more tender crumb while locking in extra moisture. If your goal is a rich and moist finish, olive oil is an excellent option to consider.

Can I use olive oil instead of butter in any baking recipe, or are there exceptions?

Yes, olive oil can take the place of butter in plenty of baking recipes, especially in cakes, muffins, quick breads, and other moist treats where its rich flavor can shine. That said, it’s not the best choice for recipes that count on butter’s solid texture - like flaky pastries or pie crusts - since olive oil doesn’t provide the same structure.

Keep in mind that olive oil’s distinct taste might not work well in desserts that need a neutral flavor, such as sugar cookies or other light and delicate baked goods. For the best outcome, stick to recipes where olive oil complements the ingredients, and opt for a mild or light extra virgin olive oil if you want a more subtle flavor. Looking for top-notch olive oil? Big Horn Olive Oil offers a range of premium options that are great for both baking and cooking.

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