Furnace Cost

(Updated 8-2024) When it comes to the cost of installing a new furnace in your home, there are several factors to consider. Type, size, efficiency, and installation versus replacement all play a role in the overall cost.

• Electric furnaces Installation Cost, Electric furnaces represent a significant investment in home heating technology. The unit cost typically ranges from $800 to $1,100, while full installation can amount to $2,000 to $4,000.

  These systems are renowned for their efficiency, as they convert electricity directly into heat for your home. While this results in higher electricity costs, the initial installation expenses are generally lower compared to other heating options. Additionally, electric furnaces are known for their relative ease of maintenance, which can contribute to long-term cost savings.

• Natural gas furnaces Installation Cost, The cost of natural gas furnaces ranges from $700 to $3,000 for the unit alone, with installation costs bringing the total to $3,000 to $8,000. When replacing an electric furnace with a gas model, an additional $200 to $500 is typically required for gas line installation.

  Natural gas furnaces are among the most prevalent heating systems in residential properties. These units operate by utilizing methane gas from municipal supply lines to ignite a burner, which in turn heats the air through combustion. Natural gas furnaces are known for their cost-effectiveness in terms of annual operating expenses and are generally considered more environmentally friendly compared to alternative gas furnace types, such as those using oil or propane. However, it is important to note that proximity to an existing gas line is a prerequisite for installing a natural gas furnace in your home.

• Oil furnaces Installation Cost, Oil furnaces, also known as pressure burners, typically range in cost from $600 to $2,500 for the unit alone. Including installation, the total expense can reach $3,000 to $5,000. These heating systems operate by spraying oil into a combustion chamber at high pressure, where it is ignited by an electric spark. The continuous spray of oil mist maintains the burning process. Oil furnaces are notable for their high heat output, as oil combusts at higher temperatures than natural gas. However, it’s important to note that operating costs for oil furnaces generally exceed those of gas-powered alternatives due to higher fuel expenses.
• Propane Furnace Installation Cost,

  Propane furnaces range in cost from $800 to $2,000 for the unit alone, with installation costs bringing the total to $2,000 to $5,000. These heating systems present a viable alternative for residences without access to natural gas infrastructure, though they necessitate the installation of a propane storage tank.

  The operational process involves the controlled release of propane, which is then converted to gas within the furnace. Upon ignition, this gas generates heat that is subsequently distributed throughout the home via the ductwork system.

  It is important to note that heating expenses associated with propane furnaces can fluctuate significantly. These variations are primarily attributed to two factors: the efficiency rating of the specific furnace model and the regional pricing of propane fuel.

   

Furnace Size

Similar to air conditioning units, a furnace’s size is quantified in British thermal units (BTUs). To roughly calculate the appropriate BTUs for your space, multiply the square footage of the area you want to heat by 40. For instance, a 2,000-square-foot house would require a furnace of approximately 80,000 BTUs. However, you may need a larger unit if you live in a region with extremely cold winters.

Typically, a 40,000 to 60,000 BTU furnace suitable for a 700 to 1,500 square foot home will cost between $2,000 and $3,000. For larger homes of up to 5,000 square feet, the cost may rise to around $6,500. Remember, if your home has cathedral ceilings or drafty windows and doors, you might need to increase the BTUs to adequately heat the space.

• Home Size: 700    – 1,500 sq ft  |  BTUs Needed: 55,000 BTU
• Home Size: 1,500 – 1,800 sq ft  |  BTUs Needed: 60,000 BTU
• Home Size: 1,800 – 2,500 sq ft  |  BTUs Needed: 70,000 BTU
• Home Size: 2,500 – 3,500 sq ft  |  BTUs Needed: 90,000 BTU

Furnace Efficiency

Efficiency is the key when it comes to heating or cooling your home. A furnace that operates efficiently can help you save on your monthly energy expenses. However, when you’re selecting a new furnace, keep in mind that high-efficiency models usually have a higher initial cost. Despite this, they could end up saving you money in the long run due to lower energy bills.

To estimate your potential savings on energy bills, calculate the improved efficiency of your new appliance against your average monthly bill. For instance, if the furnace you’re considering is 25% more efficient than your current one, multiply 25% by your monthly bill to determine your potential savings.

Furnace Brand

There’s a wide range of appliance brands that manufacture residential furnaces. Like with any other appliance, the brand you choose can affect whether you’ll save money on your new furnace or end up paying more. Your options largely depend on the type of furnace you require and what’s available in your location.

Advantages of Installing a New Furnace

The furnace plays a crucial role in your home’s heating system, providing consistent and comfortable warmth. Upgrading to a new model comes with several benefits such as:

Improved Indoor Air Quality

The infiltration of outdoor pollutants into your home’s air is a common issue. Newer furnace models come with advanced ventilation systems and air filters that effectively remove air contaminants like dust, pollen, and allergens. They also manage humidity levels, hindering the growth of mold and mildew, thereby enhancing the quality of indoor air. This results in a healthier living space for your family.

Enhanced Energy Efficiency

Newer furnace models are designed to be more energy-efficient compared to their older counterparts. When you decide to upgrade, pay attention to the annual fuel utilization efficiency (AFUE) rating. This rating signifies how efficiently a furnace can convert fuel into usable heat. The higher the AFUE rating, the greater the efficiency of your furnace. If you’re targeting a highly efficient unit, you should look for a furnace with an AFUE rating of 90% or more. This is an important factor to consider in your new furnace, particularly if you intend to reduce your energy bills over time.

Cost of Installing A New Furnace

Whether you need to replace a dead furnace or install an entirely new heating system, you’re looking at a significant investment. Before you even start shopping for a shiny new furnace, you should consider consulting with a licensed HVAC (Heating, Ventilation and Air Conditioning) professional. Your HVAC pro can look at your particular house – its size, configuration, age – and help you determine the best and most cost-effective way to heat it. For more information, check out our guide on Comparing Initial Furnace Installation Expenses.