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Electric Furnace Installation Cost

Electric Furnace Installation Cost

National average
$2,000 - $4,000
(2000 - 2500 sq.ft. home)
Low: $1,500

(existing electric HVAC system)

High: $5,500

(3500 sq.ft. home)

Cost to install an electric furnace varies greatly by region (and even by zip code).
Get free estimates from air-conditioning and heating contractors in your city.

The average cost of installing an electric furnace $2,000 - $4,000​.

How Much Does It Cost to Install an Electric Furnace?

With clean output and decent efficiency, an electric-fired furnace is a good investment in your home and can increase your HVAC system's power and your home's overall warmth. Electric furnaces tend to have lower upfront costs than other heat alternatives, but the price to operate and maintain them can be higher in some areas. The size and power of the furnace depends on the size and age of your home.

For a 2000 square foot home, the average cost of an installed electric furnace falls in the $2000 to $4000 range.

Cost Breakdown

  • Parts: A typical electric-fired furnace costs between $500 and $2000, based on size, brand, and efficiency. Larger houses will require larger furnaces in the $2500-$3000 range. Furnace efficiency is measured by the annual fuel-utilization efficiency (AFUE) rating, measured as a percentage of how much of the energy becomes heat. Furnaces with higher AFUE rates are more expensive, but are more efficient.
  • Labor: Expect to spend $1000 to $1300 on labor costs. This price could move higher if the heating system needs to be reconfigured to work with the new furnace or if you are moving from a different heat source, like natural gas or propane 1, to electric.
  • Removal and disposal: In most cases, you will need to remove the old furnace. Labor and disposal fees can run you another $400 to $800.

Enhancement and Improvement Costs

  • Extra features may lower your monthly energy bill, but they tend to cost more when the furnace is purchased and installed. Popular features include variable-speed blowers 2 that move air slower when less heat is needed and variable heat output that automatically adjusts the heat output.
  • Additional furnace components, such as a HEPA air cleaner or humidifier, can be added to a standard gas furnace. These features improve air quality and breathability but will cost an extra $400 - $800 per item. If you add an air cleaner and humidifier to your furnace, add an extra $1000 to your budgeted costs.

Additional Considerations and Costs

  • Different types and levels of insulation can help extend the life and power of your furnace. Old or thin insulation can allow heat to escape more quickly, which works against your furnace. If you need to replace or add insulation to your home, plan to add an additional $2500 to your budget.
  • Although purchasing and installing an electric furnace may be cheaper, the cost to use and maintain it can be more expensive, depending on the utility costs in your area. The difference in electric costs can vary and cost customers in some areas twice or more than the same service for customers in another region.
  • Before spending the money to have a broken or faulty furnace completely replaced, hire a specialist to test the furnace and see if the problems are repairable. Investing in a tune up could save you thousands of dollars if the current furnace can be repaired.
  • Replacing the furnace or reworking the HVAC system requires a permit in most states. Check with your HVAC specialist for specific guidelines in your area.
  • You may be eligible for a tax credit depending on the efficiency of your new furnace and the age of your home. Credit amounts and requirements change every year, so check with an HVAC specialist or accountant for the most recent local information.
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Remodeling Terms Cheat Sheet

Definitions in laymen's terms, cost considerations, pictures and things you need to know.
See full cheat sheet.
glossary term picture Propane 1 Propane: A hydrocarbon gas used as a common fuel source
glossary term picture Blower 2 Blowers: An accessory that makes a fireplace more efficient by circulating the warm air in the fireplace to other areas of the home

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.

Labor cost by city and zip code

Compared to national average
Akron, OH
Albuquerque, NM
Allentown, PA
Ambler, PA
Arvada, CO
Athens, GA
Atlanta, GA
Bakersfield, CA
Bel Air, MD
Boston, MA
Bristol, CT
Brooklyn, NY
Charlotte, NC
Chicago, IL
Cincinnati, OH
Cleveland, OH
Colorado Springs, CO
Columbus, OH
Concord, CA
Corpus Christi, TX
Dallas, TX
Denver, CO
Detroit, MI
El Paso, TX
Eugene, OR
Fort Lauderdale, FL
Fort Worth, TX
Fremont, CA
Glendale, CA
Harrisburg, PA
Houston, TX
Indianapolis, IN
Iselin, NJ
Jamaica, NY
Las Vegas, NV
Little Rock, AR
Littleton, CO
Los Angeles, CA
Lowell, MA
Manhattan, KS
Medford, MA
Milwaukee, WI
Minneapolis, MN
Modesto, CA
Nashua, NH
Natick, MA
New York, NY
Norwalk, CT
Oakland, CA
Oklahoma City, OK
Labor cost in your zip code
Methodology and sources