How Much Is A New Furnace (Costs, Installation, Replacement)

No matter who you are, where you live, or what type of house you own, at some point, you will have to address your heating and cooling needs. Unfortunately, many people do not realize that a furnace is a significant and costly investment. 

That is why if you are looking for accurate price information or additional details, you have come to the right place. In this guide, you will learn:

• All about new furnaces, including their average installation costs and the different types of furnaces you can choose from
• The additional expenses that you need to watch out for that can drive up the total cost of your furnace
• How large of a furnace do you need to purchase for your home, and what factors can affect this size
• How much does a furnace cost to replace, and how does the price change based on the type of furnace you want
• How to save money during this furnace shopping process and find the ideal furnace for your home

What Is The Average Cost To Install A New Furnace?

Typically, the average cost to install a new furnace will depend on the location of the furnace, the type of furnace you need, and the size of your home. That is why the average cost usually ranges from $2,000 to $8,000, with the national average for a full furnace installation being $6,000.

This full furnace installation includes the furnace cost, the labor fees, ductwork, and other installation costs and upgrades.

What Is The Average Cost Of A New Furnace Based On Type?

Even though gas-powered furnaces are the most popular type of furnace, other available options include electric furnaces and oil furnaces. 

Gas Furnace

Gas furnaces are often the most commonly found furnace unit in homes. With these furnaces, gas is piped into the municipal line, which causes the gas burner and the hot combustion gas to ignite, and as a result, the temperature of the air rises.

Natural gas furnaces often have the lowest yearly costs and are also the least harmful to the environment. However, the home needs a gas line in place to be able to purchase a gas furnace. For these reasons, they may not be an option in more rural areas.

Average Cost: New gas furnaces usually range in price from $650 to $3,000, with installation costs averaging about $6,000.

Oil Furnace

These oil furnaces are also known as pressure burners, with oil being sprayed into a combustion chamber at a high pressure, which is then ignited by an electric spark. As the oil mist is sprayed, the oil continues to burn, producing heat. 

Average Cost: Oil furnaces usually cost between $500 and $2,500, with installation costs averaging about $6,000.

Electric Furnace

Electric furnaces are the most efficient method of heating because they only use electricity. Even though they are easier to install than a gas furnace, they often result in higher energy bills. Also, with electric furnaces, it is incredibly vital to pick a furnace that best fits the size of your house. Otherwise, the unit will be either running too frequently, or it will always be turning on or off. 

Average Cost: Electric furnaces often range in price from $700 to $1,100, with most homeowners paying around $2,400 for installation. 

What Are The Additional Costs To Install A New Furnace?

Even though the type of furnace and size will often dictate your new furnace installation costs, there are additional factors that can affect the overall price. 

Labor Costs

Labor costs will usually range anywhere from $75 to $100 per hour depending on the area you are located in, the company doing the work, and the complexity of the installation job. However, these labor costs can also increase if assistant installers are present or an inspection of the furnace is required.

Ductwork

Duct system installation will often affect furnace installation costs. This is because if you do not have ducts installed, a new duct system will need to be designed for your home. 

Additionally, if your existing duct system is outdated, it may require air sealing to eliminate air loss and help your new heating system operate more efficiently.

Permits and Inspections

Generally, a permit is required for all types of furnaces, including electric furnaces, oil furnaces, and gas furnaces. There are two different ways inspections and permits can affect the overall furnace price:

• The cost of the actual permit, which averages between $75 and $200.
• The cost of updating certain equipment such as mechanical or electrical parts that no longer meet building codes. Due to these complexities involved with updating equipment, the price of installation costs can be significantly high.

During this inspection, the inspector will review the unit's overall installation and verify that it meets manufacturer and locality requirements. They will also review the electrical connections and conditions and make sure they are up to current codes. Finally, they will check out the plenum and duct connections to your home's existing ductwork and make sure they are efficient.

What Size Furnace Should You Get?

Even though furnaces can all appear similar when you first start looking for a system, in truth, each unit is very different, especially when it comes to capacity. That is why finding the right furnace size for your house is significant for overall energy efficiency and reducing energy costs. 

If you are considering furnace sizes, it is important to get a system that will provide you 40 to 45 BTUs of heat per square footage. That means if your home is 3,000 square feet, you will want a furnace that can provide between 120,000 BTUs and 135,000 BTUs. However, this sizing can also depend on whether you live in a cooler or warmer area. 

What Is The Average Cost To Replace A Furnace?

The average cost of replacing an old furnace is usually around $5,000. However, these costs can range anywhere from $2,000 to $9,000 and include the cost of materials, labor, and equipment. However, furnace replacement pricing usually depends on several factors, including the type of furnace you are replacing, the complexity of the work, and whether you need someone to get rid of your old furnace for you.

What Is The Average Cost To Replace A Furnace Based On Type?

It is essential to understand that when you are replacing a furnace, the type of furnace you want may not be the best furnace for your house. That is why it is essential to do your research before you decide on a replacement furnace and find one that works both for your needs and your replacement cost budget.

Gas Furnace

The average cost to replace a gas furnace usually varies between $2,000 and $9,000. However, the total cost will vary depending on the brand you want, how complicated the installation process is, and the overall efficiency of the replacement unit. 

For instance, if you decide to replace your gas furnace with a high-efficiency model, you can be looking at a price that is 50% to 100% higher than a standard model. However, these high-efficiency furnaces are often best for areas that have to endure brutal winters.

Common gas furnace brands include Goodman, American Standard, and Payne. 

Oil Furnace

Oil furnace replacement costs range anywhere from $5,000 to $8,000. Even though these furnaces have been around longer than electric furnaces and gas furnaces, due to the price of oil, they are relatively non-existent. They are typically only used where specific resources such as gas or electricity are not available. 

The more common oil furnace brands include Lennox, Armstrong, Rheem, and Ducane. 

Electric Furnace

A replacement electric furnace can run you upwards of $2,000 or more. Even though these furnaces are less popular than gas models, they are typically seen in areas where the winters are milder, in the form of geothermal systems or heat pumps.

While the electric furnace is considered a higher efficiency furnace, they are not as cost-effective as gas models since they use a lot of electricity to heat a home. 

How To Save Money On A New Furnace Or A Replacement?

Your furnace plays an essential role in your home, especially in the winter. However, because of the steep pricing involved, buying a new furnace or a replacement is considered a substantial investment that requires careful thought and significant research. 

Fortunately, there are actions you can take that can help you save money and ensure you are getting the right piece of equipment that works best for you and your home.

Consider the following tips:

• The best time to search for a new HVAC system is during the off-season (usually spring or fall time). This is usually when prices are the lowest. 
• Look for rebates from energy companies, HVAC companies, or government agencies that can help you get the best deal. 
• Obtain quotes from different service providers to compare offerings and ensure you are getting the most bang for your buck.
• Select models that are not only energy-efficient but that have a long lifespan as well. Not only will these models help you save money in the long run, but they can often provide you with incentives and rebates when you have a particular energy score.
• Consider zoning systems that allow you to divide your home into areas with separate thermostats. This way, you can set the perfect temperature based on how often your family uses the rooms. Automatic dampers installed into your ductwork will allow heat or air conditioning to flow through as needed.
• Be proactive and make sure you schedule proper furnace maintenance appointments. This is the best way to avoid costly emergency issues and prolong the life of your furnace. 
• Make sure you clean out your furnace filters. This can help improve your furnace's efficiency and lifespan. Check out this video for how to tell when it is time to change your furnace or AC air filter:

• Learn about AFUE or Annual Fuel Utilization Efficiency, which is a measure of how efficiently your furnace can utilize its fuel. The more efficient the furnace, the more heat it will give you per unit of fuel. Understanding this terminology and the AFUE rating system will be critical when buying a new furnace. 
• Choose Energy Star products, which means these products meet stricter energy efficiency guidelines set up by the U.S. Environmental Protection Agency. By choosing these certified products, you can optimize airflow, enhance comfort, and save energy and money in the process.