Exactly how much does a new furnace cost? What types of furnaces are there? And how much do they cost to install? These are common questions that may come to your mind when you’re considering a new furnace.

Furnace Replacement Cost: How Much Does a New Furnace Cost?

Furnace replacement costs vary. The average range for furnace installation is about $2,000 to $4,300. More high end furnaces will cost upwards of $6,000, with the high end landing around $9,000. Several factors will impact the cost of a new furnace. The difficulty of the installation is one major influence on the cost of furnace replacement, as well as the level of efficiency you choose for your new furnace.

Types of Furnaces and Furnace Prices

Gas Furnace Cost

A gas furnace, the most commonly used furnace especially in regions with harsh winters, costs approximately $1,200 for the furnace itself. The installation cost average is $2,300. Depending on which brand of gas furnace you choose, the prices will vary. The brands on the low end of the price scale include Payne, Goodman, Coleman, and York; while the high end brands are Trane, American Standard, and Lennox. The middle range for gas furnaces includes Amana, Nordyne, and Bryant.

Propane Furnace Cost

If you prefer to use propane rather than gas, you should factor in the price of conversion when estimating costs of a new furnace. Propane can be used in gas furnaces after some minimal conversion work and this will add in some minor fees to the installation. The conversion process works with replacing the gas valve, burners, jets, and sometimes other pieces of the gas furnace, as well. Propane furnaces can run as cheap as $800 and as expensive as $2,000 or more.

Electric Furnace Cost

An electric furnace is most often used in areas where winters are not so bad. Electric furnaces are less popular and less expensive to purchase and install than gas furnaces. They are more expensive to operate, though, as electric runs at a higher efficiency rate than gas due to the fact that they require a lot of electricity to run properly. On average, an electric furnace will cost $650 and then an added $2,000 for installation.

Oil Furnace Cost

An oil furnace is the most expensive option if you are looking at furnace replacement options and costs. They are most often used in regions where there is a high availability of oil. As oil prices are high lately, oil furnaces are not as popular as they once were. Installation costs are expensive, as a professional is needed for the install. On average, an oil furnace will cost $1,800 and then an added $5,800 for installation.

Furnace Efficiency Factors

There are several factors beyond the type of furnace to take into account when considering furnace installation. Consider how efficient you want your furnace to be in heating your home. Fuel efficiency is encouraged by the federal government as fuel efficient furnaces are more eco-friendly. All furnaces have a rating from Annual Fuel Utilization Efficiency (AFUE). High-efficiency furnaces land in the 96% area, while mid-efficiency furnaces are rated at about 80-83%. Gas furnaces are most often more efficient than oil furnaces. Energy Star ratings can clue you in as to how efficient the furnace can be, too. Take the time to research these ratings and calculate the needs for your home so that your furnace can be sustainable and not too costly on a monthly or yearly basis.

Calculating BTUs

The size of your home will contribute to the efficiency and costs of a furnace. On average, homes typically need 30 to 60 BTUs per square foot. BTUs are the British thermal unit. They are defined by the amount of heat necessary to increase the temperature of a pound of water by one degree Fahrenheit. Climate is taken into account in the variance of these BTUs. In warmer climates, fewer BTUs are needed. In colder climates, more BTUs are needed. Again, it is a good idea to take the time to calculate the needs of your home, based on size and climate, so that your new furnace is up to the job.

Cost of Furnace Installation

As mentioned above, it’s important to take into account the cost of installation when considering furnace replacement costs. When paying a professional for the installation you would likely pay somewhere between $50 – 75 an hour, individually. If there is more than one person installing the furnace, costs will increase. In some areas, a license is required to install a furnace and will add anywhere from $50 – 100 to the cost of the furnace installation.

Other Factors in the Cost of Furnace Installation

If you live in an extreme winter climate, then you might look into some upgraded features for your furnace so as to better maintain its condition. Advanced features are likely unnecessary if you live in warmer or temperate climates, as the environment is less harsh and demanding of a furnace.

The location of your furnace might increase costs. This would be the case if your furnace is located in a spot in your home that is difficult to access. Mainly, this increased installation cost would be due to the fact that it would take professionals longer to install the furnace.

The Time Cost of Furnace Installation

Beyond the time it takes to physically install a furnace, you will have to spend time on the phone or in person talking to your contractor. This is necessary so that they understand the needs for the installation and can make the process as smooth and timely as possible. Make sure you get a warranty in writing from any professionals you work with. The warranty should include exactly what is covered in the costs, how long you are covered when it comes to repairs and replacement, as well as what you can expect the contractor to do if issues arise.

All in all, the cost of new furnaces vary. Ensure that you are installing your furnace in a way that is best for your needs, given the area where you live and the size of your home. Be mindful of the AFUE rating, or the Energy Star rating, when deciding which furnace you will install in your home. Despite the fact that installation costs can be high, paying a professional is often well worth it as it, as the professional doing the installation will likely have more experience than you and be better equipped to install a reliable furnace for your household.

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