What Is the Cost of a New Furnace?

When it gets cold, a furnace can heat air inside a home. Whether yours is old and inefficient or no longer working, a new furnace can cost anywhere from $2,614 to $6,310, with a national average currently at $4,453.

Cost of a New Furnace

Photo: depositphotos.com

  • Typical Range: $2,614 to $6,310
  • National Average: $4,453

When homes get chilly, many homeowners use a furnace to heat the air inside to stay warm. Modern furnaces primarily burn natural gas, propane, or electricity. There are several types of furnaces, each with specific characteristics, efficiencies, and costs.

If you are planning to install a new furnace, consider factoring in furnace type, local climate, price, house square footage, and properly or improperly insulated areas to help find the right model for your needs. Once you find a new furnace, installation is the next step. HomeAdvisor averages the cost of a new furnace, and with installation, you can expect to pay between $2,614 to $6,310, with the current national average at $4,453. Depending on the type of furnace you choose, the cost varies based on materials, equipment, and labor. Replacing a gas furnace, for example, runs between $3,800 and $10,000 or higher. Meanwhile, an electric furnace typically ranges from $2,000 to $7,000.

Need to Replace Your Furnace?
Maybe it's time to call in a pro. Get free, no-commitment project estimates from furnace installation pros near you.
+

Factors in Calculating the Cost of a New Furnace

Factors in Calculating the Cost of a New Furnace

Photo: depositphotos.com

Before purchasing a furnace, it’s recommended to consult an HVAC professional for a quote to help identify your needs. How much does a new furnace cost? While the national average for a furnace plus installation is approximately $4,453, that amount can shift according to local areas and specific factors. Based on the size, configuration, and age of a home, HVAC professionals can determine the most economical way to heat your house. Consider how location, livable square footage, and energy bills also help determine what furnace type is the best for your home. Furnace type directly correlates to a shift in price, whether you choose a gas or electric unit. There are several specific factors that determine how much a furnace purchase and installation will cost you.

  • Type of furnace: There are different furnaces available, including gas, electric, oil, mini-split, and geothermal models.
  • Average temperature: A properly functioning furnace is typically weather-dependent. Turning on a furnace when the temperatures in your local climate dips low can help keep you, and your home, warm.
  • Price: Furnaces vary in price according to brand models and specific installation costs.
  • Square footage: Larger homes have more space that the furnace’s heat must be able to reach.
  • Insulation values: An HVAC professional can point out any insulation issues or potential air leaks in your house, which will inform the type of furnace needed to combat these problems.

Additional Costs and Considerations

While homeowners expect to pay the cost of a new furnace and its installation, there are other costs associated with the installation process. There may be additional charges for extra parts or additional labor a hired professional may need to complete the project

Expert Installation

New furnace cost can be between $2,000 to $10,000. This amount covers the furnace, equipment, and labor. You’ll likely pay between $150 and $500 for a professional service to install a furnace at a cost of $50 to $100 per hour for a licensed installer and up to $50 per hour for each additional team member to help complete the job. This cost is flexible based on your current setup and whether you need to repair or install new ductwork during the process. Prices vary according to city, cost of living, furnace efficiency, and included warranties, among other local considerations.

Electrical Circuit Costs

If certain factors deem it necessary to relocate a furnace to a new spot in the home, you can expect additional costs between $500 and $2,000. Moving the furnace might mean placing the new unit only a few feet away from the old one during a basement renovation. In that case, you’ll just need to add a few feet of ductwork. Sometimes moving the entire system might be necessary, perhaps relocating it from the basement to the attic. This scenario requires extensive construction to add ductwork, drywall, and new electrical circuits to a new space. Total costs vary based on labor rates and furnace brands.

Drywall Repairs

In a renovation situation where you need to add more ductwork or circuits to set up a new furnace, you’d likely need drywall to repair and seal any changes to the wall. Drywall repairs typically cost between $250 and $800 and can be as simple as patching up a spot on the wall or closing up more extensive damage. Some contractors factor hole size or location into their repair costs.

Gas Line and Ventilation Costs

A gas furnace needs air to burn fuel safely. To accommodate this, you may need to add ventilation or a gas line when you install a new gas furnace. Gas line additions can cost anywhere between $300 and $800, at a cost of between $15 and $25 per linear foot. These costs can vary based on furnace brand, energy efficiency, British thermal unit (BTU) rating, and average labor costs. If you are converting from an electric furnace to a gas one, expect to add between $5,000 and $15,000 to your budget in addition to installation fees. This cost will depend on your current setup and whether you need to repair or install new ductwork, which includes the proper venting. Most furnaces cannot function properly if the ductwork, vents, or other filters are not adjusted correctly for the new furnace or your home. This new ductwork costs an average between $3,000 to $5,000. Any repairs to the ductwork and vents can cost between $1,000 to $5,000.

Furnace Replacement Made Easy
Get free, no-commitment project estimates from furnace installation pros near you.
+

Furnace Capacity

HVAC professionals assess the size of your home to determine the best furnace type and model for the space. The size of a furnace can also affect the installation cost. Many homes typically require 30 to 50 BTUs per square foot to properly heat a house. For example, a 700- to 1,500-square-foot home will require a BTU rating between 40,000 and 60,000, which will cost between $2,000 and $3,000. A furnace for a home ranging in size from 2,000 and 5,000 square feet will need between 125,000 and 150,000 BTUs and will cost in the neighborhood of $3,300 to $6,500.

Permits

Before a job begins, you’ll need to get the proper permits and pay any additional fees required for labor and the type of work being done. A permit costs between $350 and $1,800, which varies according to location. These fees can total up to 25 percent of the final bill. Many companies include a $100 inspection fee to ensure the equipment safely and properly functions. Before settling on a service, consider shopping around first because some local gas providers offer free inspections that can save you money.

Cost of New Furnace Types

Photo: depositphotos.com

Cost of New Furnace Types

There are several types of furnaces, and depending on the one you choose, the price can vary. The average cost of replacing a furnace runs between $2,000 and $7,000 based on the model that best meets your needs. There are gas, electric, and oil versions, each using varying amounts of fuel that can affect the quality of home heating.

Natural Gas

Natural gas is a relatively inexpensive fuel source that can efficiently and quickly heat a home. Furnaces that run on natural gas are best suited for northern climates inside well-insulated houses. Installing one of the best gas furnaces can cost between $3,800 and $10,000, depending on the brand and whether you’re converting from an electric unit. Since a gas unit requires ductwork, you might incur additional costs if a contractor needs to make adjustments to your existing ductwork to accommodate the new furnace.

Electric

While electric furnaces have higher operating costs, they also have relatively cheaper installation prices. An electric furnace is highly efficient and relatively low maintenance when it comes to function. However, electric furnaces heat more slowly than gas furnaces, and it takes more money to run an electric furnace each month. This type of furnace can cost homeowners between $2,000 and $7,000 to install.

Oil

As oil prices rose in the U.S. years ago, many homeowners sought to convert to natural gas furnaces to save money. That being said, an oil furnace is often seen as a more sustainable option now. While it requires storage tanks, this type of furnace allows you to purchase large amounts of fuel at once and get rid of a monthly heating bill. Switching to an oil model is more environmentally friendly as fuel is stored directly on-site. The cost of an oil-burning furnace runs around $6,750 to $10,000.

Do I Need a New Furnace

Photo: depositphotos.com

Do I Need a New Furnace?

During cold-weather seasons, a broken furnace is less than convenient. When you factor in the potential discomfort and hazards of a home without heat, it becomes even more important for a furnace to work properly. It’s much better to be proactive and notice when you need a new heating system instead of waiting till the heater quits working during a cold snap. There are a few key factors to consider when replacing a furnace, including high heating bills, safety, energy efficiency, and flooding.

High Heating Bills

A furnace is one of the biggest energy consumers in the home, and its efficiency can directly affect your monthly budget. As the cold-weather season starts, it’s advisable to check your energy bills. If you find that you’re paying way more than last year and the rates haven’t increased, this may be a sign to double-check your furnace. Newer and well-maintained appliances perform at peak efficiency levels, while older models don’t fare as well.

Safety

A malfunctioning furnace can be a health hazard. A faulty heating system can spread carbon monoxide throughout your home, and exposure can be deadly. A broken furnace also allows the spread of dust, mold, or other compromised air, which can exacerbate asthma and allergic reactions. A new furnace can help clean the air, which may alleviate some health concerns.

Maybe It's Time For a New Furnace
Get free, no-commitment project estimates from furnace installation pros near you.
+

Energy Efficiency

A furnace that is too large often cycles on and off more frequently, using more energy to power and continually heat it. To avoid waste, you may look into replacing an older furnace with a newer energy-efficient model. The size of a unit can directly affect how much energy it needs to run. For a furnace to be more efficient, homeowners can lower the thermostat by a few degrees, cover the windows at night or in the summer, and seal off leaks or insulate ducts to reduce potential heat loss.

Flooding

Many homeowners know the potential damage that flooding can cause in the home. If a furnace is installed below ground level, floodwater can ruin circuit boards or other sensitive components. Based on water depth, exposure duration, and the amount of damage, furnace replacement may be the only option. To protect your furnace from potential flooding, consider moving the unit to an upper level or attic, or check to see if professionals can construct a floodwall around the appliance to keep out water damage.

Cost of a New Furnace: DIY vs. Hiring a Professional

Photo: depositphotos.com

Cost of a New Furnace: DIY vs. Hiring a Professional

After purchasing a new furnace, another important consideration is the cost to hire an installation service. Hiring a reputable, highly trained contractor is crucial to install a furnace correctly. If you end up hiring a less-skilled contractor or take on this project yourself, the results could lead to missteps and a furnace that doesn’t function efficiently, which may even be dangerous. These issues can lead to increased monetary and energy costs in the long run since you’ll likely end up hiring a contractor anyway to fix the issues.

If you are typically pretty handy and think you can tackle this installation on your own to save money, you should first understand the complexities of this process to ensure a safe and successful hookup. Since there’s a lot of technical wiring involved, however, it is advised to hire a trained HVAC professional to get it done safely and correctly. To DIY this installation process, you need to be knowledgeable about getting the proper permits, removing the existing furnace, and disconnecting the gas line safely (if applicable) before setting up the new model. Leaks in a furnace can occur during installation and, if you lack the experience, it’s difficult to fix the issue and prevent further damage. While the cost of a new furnace can be a significant amount, you can think of it as an investment since it should last for 15 to 25 years.

Out of the Frying Pan, Into the Furnace
You don't have to do it yourself. Get free, no-commitment project estimates from furnace installation pros near you.
+

How to Save Money on the Cost of a New Furnace

It’s unlikely that a furnace will last forever, so at some point, you’ll need to replace your current heating system. As you shop around for the best models and installation services, you’ll likely come across costly prices. Although relatively high, these expenses are set by trained professionals who’ll make sure the job is completed safely and to code. While these up-front costs may seem substantial, here are some helpful ways to save money without sacrificing a quality installation.

  • Look into current deals, sales, coupons, promotions, and rebates from manufacturers and installers.
  • Check partner offers on a new unit through warehouse club memberships.
  • Set money aside weekly for major home expenses. This way, when there’s an incident, you’ve built a tidy nest egg to cover the cost.
  • Apply for financing through your local bank or credit union.
  • Find out if there are any tax incentives or special rebates from federal, state, or local governments and utility providers.
  • Ask for pricing quotes from several qualified installation companies before hiring.
  • Check to see if the HVAC installers you’re considering offer free quotes.

Questions to Ask About the Cost of a New Furnace

Installing a new furnace can be a complicated process, so it is important to ask a local professional the right questions to ease any of your concerns. Here are some recommended questions to ask at different stages of the furnace installation process.

Before installing a new furnace:

  • How large should a furnace be, considering the size of my home?
  • How is this unit’s efficiency measured?
  • What types and brands of furnaces are available?
  • What fuel type works best for my home and local climate?
  • How long will this model last?
  • How much will installation cost, and how much is a quote?
  • Do you have a detailed cost list or proposal that outlines the entire scope of the installation job?
  • How do local permits and inspection fees affect the total cost?
  • What is your equipment markup?
  • Can you install other systems, including a thermostat?

During the installation process, if there is a problem:

  • What are the next steps to fix this?
  • What additional costs or extra time are required to fix this?

After the furnace is installed:

  • Is regular maintenance necessary?
  • To whom do I address payment?
  • Where can I leave a review or testimonial?

FAQs

Purchasing a new furnace and hiring an installation service can be a confusing process, especially if you’ve never done so before. We’ve answered a few common questions to help make this process easier.

Q. How much is a new furnace for a 2,000-square-foot home?

To calculate the correctly sized furnace for your home, you first need to know your home’s square footage. From there, you can figure out the average heating capacity the furnace needs to properly warm up your space. For a 2,000-square-foot home, it’ll cost around $3,300 for a new furnace based on total square footage and BTU rating.

Q. How hard is it to replace a furnace?

Installing a replacement furnace is a complicated process, and it is often recommended to leave this job to trained professionals who know how to complete the job properly and efficiently. This process takes several hours to finish, and even longer if there are complications involving ductwork, electrical, or gas line modifications needed to match the new equipment. An electric furnace has a straightforward installation process since it doesn’t need to be vented, and it’s easier to replace than a gas furnace.

Q. Should I replace a 40-year-old furnace?

If you’re tempted to search “How long does a furnace last?” on Google before deciding if it’s time to replace your existing unit, it’s important to note that a typical lifespan for a furnace is 15 to 25 years. So, if you have a furnace any older than that (such as a 40-year-old furnace), it is advised to look into updating your current unit. Other signs that your furnace needs to be replaced include high energy bills, air leaks, broken thermostats, clogged filters, odd sounds, and unfinished cycle lengths.

Q. How long does a new furnace last?

The average furnace lasts 15 to 30 years.

Find trusted local pros for any home project
+