How Much Does It Cost to Install an Electric Furnace?

Average Cost
(for a 68,000 BTU electric furnace)

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How Much Does It Cost to Install an Electric Furnace?

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(for a 68,000 BTU electric furnace)

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Reviewed by Adam Graham. Written by

While many homeowners rely on oil or natural gas to heat their homes during the colder winter months, electricity is another option. For owners of small houses and mobile homes in more temperate climates or areas where oil and natural gas are not readily available, an electric furnace provides a safe alternative. The average electric furnace with installation costs $1,600 to $3,200, with most homeowners paying around $2,400 for a 68,000 BTU unit.

Electric Furnace Prices

Electric Furnace Installation Costs
National average cost$2,400​
Average range$1,600-$3,200​
Minimum cost$900
Maximum cost$4,000

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Electric Furnace Installation Cost by Project Range

For a 35,000 BTU electric furnace
Average Cost
For a 68,000 BTU electric furnace
For an 80,000 BTU electric furnace

The Difference Between Heat Pumps, Modular Blowers, and Electric Furnaces

True electric furnaces are sometimes mistaken for or interchanged with heat pumps and modular blowers. This creates confusion on pricing and performance expectations.

An electric furnace is a compact unit containing both a heating element and a blower to circulate air over that element.

A modular blower is the blower portion of an electric furnace and does not include the heating element. A modular blower can be outfitted with a separate heating element to essentially become an electric furnace.

Unlike the electric furnace, a heat pump does not only use a fuel source to generate heat. It functions much like a reverse air conditioner by using electricity and refrigerant to transfer heat from the outdoor environment indoors. In the summer, the heat pump may be used in reverse to help cool a home.

Talk to local pros to get quotes for your electric furnace installation

Electric Furnace Costs by Brand

The price of similar-size electric furnaces varies by brand. A higher-quality King furnace will be more expensive than a value-minded budget brand like Revolv.

Compare price, warranty, customer support, quality, and length of time you plan to own your home to help you make your decision. An entry-level furnace usually lasts 15 to 20 years, and a higher-quality furnace can last 18 to 25 years.

The most commonly installed size of electric furnace is 20 kilowatt-hours (kWh) or approximately 68,000 BTUs (British Thermal Units). This size furnace is well-suited for a 1,500-square-foot home in a temperate climate. The table below shows the average price a homeowner can expect to pay for a 68,000 BTU furnace from some of the most common brands.

Electric Furnace Costs

Electric Furnace BrandAverage Product Cost for a 68,000 BTU (20 kWh) unit
Revolv$700 - $950
Winchester$1,300 - $1,600
King$1,400 - $2,850

Electric Furnace Sizes

It is very important to choose the correct size furnace for your home. A unit that is too small will run nearly constantly as it struggles to produce sufficient heat. This decreases the lifespan of the furnace and increases your monthly energy bill. On the other hand, an oversized furnace is also a problem because it will turn on and off frequently, causing more wear and tear on the unit and decreasing its lifespan. An oversized furnace also leads to an unevenly heated home with some rooms that are too hot and others that are too cold.

The best way to determine your ideal electric furnace size is to consult a professional HVAC company. They have the expertise to do a precise Manual J Load calculation, which takes into account variables like the number, type, and location of windows as well as sun exposure, number of occupants, number of floors, preferred temperature, ceiling height, building construction, and age of the home. The more details incorporated, the more accurate the final number.

Before calling the professionals, you can do a basic calculation yourself. This allows you to approximate the furnace size you should budget for and determine if an electric furnace will meet your needs.

Your home size and climate are two of the main determining factors when calculating the type of furnace and the correct size for your home. To do your calculation, you need to know the approximate square footage of your home and the climate zone your home is in.

First, consult the U.S. Energy Information Administration’s climate zone map and determine your zone number. Use the table below to find the recommended BTU per square foot output your furnace should generate based on your zone. The recommendations are given in a range. Choose a number on the lower end of the range if your home is well-insulated or a higher number when installing the furnace in an older, more poorly insulated location.

Electric furnaces are most cost-effective for full-time use in Zones 1 and 2. They can be used part-time in Zones 3 and 4. An electric furnace is not generally recommended for use in Zone 5 due to the prohibitively high heating costs it would entail.

Electric Furnace Size Calculator

Climate ZoneRecommended BTUs per square foot
Zone 130 - 35
Zone 235 - 40
Zone 340 - 45
Zone 445 - 50
Zone 550 - 60

After determining your climate zone, multiply the selected BTUs per square foot by your home’s total square footage to get the BTU rating recommendation for your furnace.

Most furnaces are sized based on their hourly British Thermal Unit (BTU) output capability. You may, however, find some that are sized in tons like air conditioning units. One ton is equivalent to 12,000 BTUs.

Electric furnace sizes come in 7,000 to 10,000 BTU increments, so the available sizes may not perfectly match your calculations. Choose the closest size, trying not to undersize by more than 10% or oversize by more than 20%. Keep in mind that the listed BTUs are the input rating, not the output rating. To find out how many BTUs of heat the furnace will actually put out into your home, you must deduct the percentage that is lost due to inefficiency. To calculate the final BTU output, multiply the furnace’s BTU input by its efficiency percentage, otherwise known as its Annual Fuel Use Efficiency (AFUE) rating.

The chart below shows the BTU and kilowatt-hour (kWh) range that a homeowner in Climate Zone 2 would shop for based on home size.

Electric Furnace by Home Size

Home Size (sq. ft.)BTUs per hour (based on Climate Zone 2)Kilowatt-Hours (kWhs)

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Labor Costs to Install an Electric Furnace

Labor rates for electric furnace installations range from $45 to $150 per hour. The average electric furnace installation takes about 4 to 10 hours, depending on your home’s setup and whether you are replacing an existing furnace or installing a new one. This brings estimated labor costs to a total of $180 to $1,500.

New Installation vs Replacement of an Electric Furnace

A new furnace installation can cost up to three times as much as replacing an existing furnace. The bulk of the added cost is in labor and the rest in materials. A replacement installation can usually be completed in one day, and minimal additional supplies are needed because it is being hooked up to the existing system.

For a completely new installation, the contractor needs to purchase and install all the necessary ductwork, vents, and electrical circuits. Holes need to be made in your drywall, and more permits may be required. This adds an additional two to three days of labor plus the material costs. Expect the ductwork installation portion of the project alone to cost approximately $2,000.

Technician installing electric furnace

How Much Does It Cost to Run an Electric Furnace?

Purchase and installation costs are two factors to consider when purchasing a furnace. The third variable is operational costs.

According to the U.S. Energy Information Administration, as of January 2020, the average price per kilowatt for residential electricity was 12.79¢. The average electric furnace uses between 10 and 50 kilowatts of power, so at 12.79¢, expect to pay $1.28 to $6.40 per kilowatt-hour to run your electric furnace.

Assuming the yearly average home furnace usage comes out to 40 kWh daily, which is the equivalent of running 4 hours a day during the 6 coldest months of the year, the operational costs would be $5.12 per day, $155.63 per month, and $1,867.54 per year.

To calculate how much it will cost to run your electric furnace, first divide your furnace’s BTUs by 3,400 to determine your kilowatts per hour. Multiply that number by your electric company’s per kilowatt-hour rate. This gives you your per kilowatt-hour charge, which you can then multiply by the number of kilowatts you use.

An energy use calculator can also run the estimation for you if you enter your price per kilowatt-hour, the furnace power use in watts (remember there are 1,000 watts in a kilowatt), and the yearly average number of hours used per day.

Maximizing the Efficiency of an Electric Furnace

All new electric furnaces are considered high-efficiency since they exceed the accepted 90% minimum Annual Fuel Use Efficiency standard for high-efficiency furnaces. The 95% - 100% efficiency rating of an electric furnace is based on the furnace and ductwork operating at peak performance standards.

Maximize the efficiency of your furnace by having your ducts and insulation inspected to ensure you have a leak-free home. Upgrading your insulation and replacing leaky windows can improve your home’s overall thermal efficiency.

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Factors Affecting the Cost of Installing an Electric Furnace

The range of average electric furnace installation costs reflects several factors that determine how complex and time-consuming the job is. The three main factors that affect installation costs are: whether it is a new installation or a replacement, the condition of the ductwork and vents, and the size and ease of access to the furnace installation location.

A simple replacement of a same-size same-type furnace with no ductwork installation or needed repairs will be the fastest and easiest job with the lowest installation cost. Installing a new furnace and having new ductwork and vents run will take longer and increase costs. A difficult-to-access furnace location slows the installer down and leads to a higher labor bill.

Electric vs Gas Furnace

Both electric and gas furnaces have pros and cons. When comparing gas vs electric furnaces, the best choice for your situation will depend on your climate, house size, the price and availability of electricity and gas, and your personal preference.

An electric furnace is quicker and easier to install than gas. It also has a lower purchase and installation cost. With an electric furnace, there is no danger of a fuel leak or carbon monoxide poisoning. Electric furnaces run quieter and last 15 to 25 years. The main downside of electric furnaces is their higher operational cost due to electrical rates. Electric furnaces are generally considered a better choice in warmer climate zones and for smaller homes.

Gas furnaces are more expensive upfront than electric ones. Not only is the purchase price higher, but since they are more time-consuming and complicated to install, labor costs are also higher. They run louder and have a shorter 10 to 20-year lifespan. Homeowners must also be alert to the potential for fuel leaks and carbon monoxide emissions. The advantages of gas furnaces are their lower operational cost thanks to inexpensive fuel, their rapid heating capability, and their efficiency in very cold temperatures. Gas furnaces can be used successfully in larger homes and in colder climates, better than electric furnaces.

Close up gas from gas furnace

Electric Furnace Maintenance

An annual inspection from a licensed electric furnace contractor is one of the most important ways to keep your furnace operating properly. The inspector will check the function of your system and go over the findings and action items with you. Expect to pay $90 to $125 per hour. The average inspection takes one and a half to two hours, for a total cost of $135 to $250. In addition to this scheduled visit, there are several maintenance tasks that you can perform yourself.

For optimum performance, the U.S. Department of Energy recommends cleaning your filters monthly and replacing them regularly per the manufacturer’s recommendations. Also, make sure that your furnace’s air vents are not obstructed, and remember to clean the air blower, including the blades.

Mobile Home Electric Furnace Prices

Electric furnaces are a popular choice for mobile homes since they do not need the venting a gas furnace would, and they do not pose a carbon monoxide risk. In a mobile home, narrow ductwork is generally run in the floor rather than the ceiling. This means you need a downflow installation and blower.

Electric furnaces are also sized well for smaller spaces, making them a natural fit for a mobile home. When sizing a mobile home electric furnace, consider the size of the furnace storage closet in addition to the home’s total square footage. There must be enough room to install the furnace with proper ventilation and clearance around it. Some manufacturers produce electric furnaces that are specifically designed for mobile home use. The average mobile home electric furnace costs $600 to $1,000.

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Enhancement and Improvement Costs

Hepa Air Cleaner or Humidifier

A high-efficiency particulate air (HEPA) cleaner removes up to 98% of air pollutants and can trap particles as small as 0.1 microns. Some manufacturers offer a duct-mounted air cleaner for a whole-home solution. These cleaners may be beneficial for allergy and asthma sufferers. Air cleaners of this caliber cost approximately $1,000.

Hot forced air can lower the humidity levels in your home to uncomfortable levels. A furnace-mounted whole-home humidifier helps combat the decreased moisture with minimal maintenance. Bypass, flow-through, and steam model humidifiers are available. Expect to spend $150 to $700, depending on the style you choose.

Removal or Disposal of Old Furnace

When replacing an existing furnace, you must pay for the removal and disposal of the old furnace. Expect your installer to charge $100 to $300 for this service.

Furnace Ductwork Cost

Ductwork is the pathway that heated air travels throughout your home. When replacing your furnace, you may be able to use your existing ductwork, but it is advisable to have a professional inspect the ductwork and note its condition. Investing money in a high-efficiency furnace does not make sense if the ductwork is in poor condition, allowing heat to leak out. If your ductwork cannot be repaired, it may need to be replaced. Expect ductwork costs to be around $200 to $2,000 for repair or $2,000 for installation of new ductwork.

Additional Considerations and Costs

  • Installing an efficient new furnace may qualify you for a tax credit. Credit requirements and amounts fluctuate annually, so confirm your credit eligibility with an accountant and your HVAC specialist.
  • When upgrading to a new furnace, you may need to install a more advanced thermostat to run the newer technology.
  • An oil furnace cannot be converted to electric. However, you can keep your original duct system and connect it to the new electric furnace once the oil furnace is removed.
  • Before scheduling your furnace replacement or HVAC system revision, confirm which local and state regulations apply. In most states, a permit is required before beginning the work.
  • If you have furnace problems but do not want to invest in a complete replacement, consider hiring an HVAC specialist to inspect your current system. You may be able to have it repaired instead of purchasing a new furnace.


  • How long does an electric furnace last?

Expect an electric furnace to last between 15 and 25 years with proper maintenance and upkeep.

  • Are new electric furnaces more efficient?

New electric furnaces have an Annual Fuel Use Efficiency (AFUE) rating of 95-100%, meaning they are all high-efficiency, and their heat loss is 5% or less as long as the ductwork is in good condition. Keep in mind that the U.S. Department of Energy estimates that the fossil-fuel burning process used to create the electricity is only 30% efficient.

  • What is the average cost of a new electric furnace?

On average, a new electric furnace costs around $2,400 with installation.

  • How many kilowatts does an electric furnace use?

Electric furnaces run an average of 10 to 25 kWhs. Divide a furnace’s BTU output by 3,400 to calculate its expected kilowatt usage per hour.​​

Cost to install an electric furnace varies greatly by region (and even by zip code). To get free estimates from local contractors, please indicate yours.

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The information provided by our cost guides comes from a great variety of sources, including specialized publications and websites, cost studies, U.S. associations, reports from the U.S. government, contractors and subcontractors, material suppliers, material price services, and other vendor websites. For more information, read our Methodology and sources
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Cost to install an electric furnace varies greatly by region (and even by zip code). To get free estimates from local contractors, please indicate yours.

The information provided by our cost guides comes from a great variety of sources, including specialized publications and websites, cost studies, U.S. associations, reports from the U.S. government, contractors and subcontractors, material suppliers, material price services, and other vendor websites. For more information, read our Methodology and sources