Most older boilers were grossly oversized. Many calculators are as much as 100% over the 'real' need. A better solution for this house would be to compare the actual oil used verses the heating degree-day for your location. No idea if that brand and model is good or not...
If a lot of the insulation/window upgrades were made after the last heating season, your new calcs may no longer be accurate.
Generally, there's no need to oversize a boiler to provide DHW unless it is a commercial situation where there's significant hot water useage all day long. It's generally run on a priority zone, and uses all of the boiler's output while heating the DHW, then reverts back to space heating when that's done. The homeowner will rarely notice that short gap.





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At least I was able to use a two stage furnace, so it almost never runs in high fire mode.

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