It costs an average of $1,450 to buy and install a new furnace, assuming ductwork is already in place. While the typical cost to install a furnace can range from about $1,200 to $1,750, a high-end project can cost upward of $2,050. The total cost of your project will depend on the type of energy your new furnace uses, how powerful it is and whether you need new ductwork installed. Labor costs will also vary by ZIP code, so it’s always a good idea to contact multiple furnace installation companies to get a few cost estimates.

• How much does a new furnace cost with installation?
• How much do different types of furnaces cost?
• How does furnace size affect price?
• How does furnace efficiency affect price?
• How much does labor cost for furnace installation?

Having central heat makes winters and cold nights so much more bearable. While installing a new furnace comes with a significant cost, it should last for several years and keep your home feeling comfortable and inviting. So whether you suspect your HVAC system is in need of a furnace replacement or you’re building a new home, it may be time to invest in a new furnace.

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Many homes in the U.S. rely on a central heating system that sends hot air through a system of ducts. If you already rely on a furnace, you won’t need to do anything to your existing ductwork when installing a new furnace. For new construction, however, or homes with a ductless heating system, you’ll need to pay extra for installing new ductwork. Installing a new furnace requires a high level of technical skill and expertise, so it’s wise to discuss the project ahead of time with multiple HVAC professionals and let them do the hard work. In the long run, you’ll have peace of mind that your heating system is safe and efficient and set up to last. Read on to learn about all of the factors that go into the cost of buying and installing a new furnace.

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The average cost of installing a new furnace varies depending on the type of fuel source you choose. While furnace prices vary widely, electric furnaces are typically the most affordable type, followed by gas and oil. Not only do these different furnace types come with different price tags, but they also have their own benefits and downsides you’ll want to consider. Besides the type of fuel, the brand name can also affect price, with well-known brands charging a premium. You can talk to your contractor to learn more about different furnace brands and which ones may be best for your home.

Electric furnaces are a great choice because of their lower price and more environmentally friendly fuel type. A new electric forced air furnace can range in cost from $1,050 to $1,900 with installation, the variation in price depending on the BTU of the system. Because they don’t require gas lines, electric furnaces take up less space than oil- or gas-powered furnaces. They’re also safer, since they don’t require any fuel combustion. Finally, electric furnaces tend to last for a long time — up to 15 years. Still, for larger homes they may not be the best choice. Electric furnaces often require more energy to produce the same amount of heat as a gas or oil furnace, and that may cause your energy bills to be a bit higher.

Gas furnaces are a popular choice because they heat up quickly and efficiently and are relatively low-cost. A new gas forced air furnace costs anywhere from $1050 to 2,050 with installation, the variation in price depending on the BTU and AFUE (both further explained below) of the system. While it will be more expensive than an electric furnace upfront, your utility bills may be lower over time since it uses less energy. Especially if you live in a place with cold winters, a gas furnace will be the most dependable choice for providing lots of heat to your home. If you don’t already have a gas furnace, keep in mind that it will require more extensive ductwork than a simple electric furnace.

Although no longer as common, an oil furnace is a third option. A new oil forced air furnace can cost between $1,500 and $2,050 with installation, the variation in price depending on the BTU and AFUE. If you happen to live in an area where oil is abundant, this could be a smart option. Unlike with gas, you can buy oil in bulk and store it in a tank, so energy bills won’t be counted among your monthly utility costs. For most parts of the country, however, higher oil prices make this energy source less popular than natural gas or electricity.

When picking out a new furnace, you’ll also have to consider how much heating power you need for your home. In general, the bigger and more powerful the furnace, the more expensive it’s going to be. The amount of heat that a furnace produces is measured in BTU, or British thermal units. The right amount of BTU for your needs will depend on the square footage of your home. In general, you’ll need about 40 to 50 BTU per square foot. That means that for a 2,500-square-foot house, you’ll need a furnace with 100,000 to 125,000 BTU. This number can also be lower or higher depending on your region’s climate. If you live in a place with a lot of snow in the winter, anticipate your high heating needs by considering a more powerful furnace.

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In addition to heat-generating power, furnaces are also measured by their energy efficiency. All furnaces now come with an Annual Fuel Utilization Efficiency rating, commonly shortened as AFUE. This rating is measured as a percentage, and the higher the number, the more efficiently the furnace uses energy. Furnaces that are especially fuel-efficient may come with an Energy Star rating. A highly efficient furnace will often run at an AFUE rate of around 90 to 95 percent, while an average furnace usually runs at a rate of around 80 to 85 percent. That means that 80 to 90 percent of the energy used is converted to heat, while the rest is lost in the process. Furnaces with higher fuel-efficiency ratings not only are more environmentally friendly because they use less energy, but they’ll also help to lower your bills down the road. And while more efficient furnaces are usually more expensive upfront, they often come with government incentives and rebates.

The final factor you’ll need to consider when determining the price of furnace installation is the cost of labor. Installation costs will depend on the type of furnace and how complex the job is. Contractors charge an average of $65 per hour, and you’ll likely need to hire more than one person to complete installation. This job can take eight hours or more, and it will be more costly if you need complicated or extra work done. For example, if you don’t have existing ductwork in your home, installing this will be an added cost. Additionally, if you are replacing your current furnace and need the old one removed, this will cost you an extra $250 on average.

You won’t want to replace your old furnace yourself, since a heating system can be quite dangerous if not properly installed. Electric furnaces are typically less expensive to install, as they are smaller and require less complex ductwork. Oil furnaces are usually the most costly to install, because they require a highly skilled contractor and involve more ducting and setting up an oil tank. You’ll also want to make sure you get a manufacturer’s warranty when you buy a new furnace, which ensures you won’t have to pay for repairs for a certain period of time after installation. Many HVAC contracting companies will also offer the option to buy a second warranty, which will cover any repairs needed for the next several years.

Note: Costs are estimated at the U.S. national level. Variations depend on factors such as the quality of materials, type of products installed and labor costs. The typical range is assumed to be between the 20th and 80th percentiles. The high-end and low-end costs are the maximum and minimum, respectively. Costs assume that the homeowner manages the project and hires subcontractors as needed. They include a subcontractor markup of 10% for materials and labor. Costs can be higher if a general contractor is managing the project. All numbers are rounded.

Source: 2019 Houzz Remodel Costs Database