How Much Does It Cost to Install a Furnace?

Forced hot air furnaces are one of the most common methods of heating a home. They circulate warm air through ducts to vents installed in your floor, walls, or ceiling. The furnace uses several different fuel types to produce this heat - oil, gas, propane, or electricity. Each furnace type has its own attributes and cost structure, which impacts the cost of your furnace installation.

The average range for installing a new furnace in your home is between $2,000 and $11,000, with most people paying around $5,792 for a new high-efficiency gas furnace in a 2,000 sq.ft. home.

Furnace Costs

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NATIONAL COSTS

Average Cost

$5,792

Low Cost

$972

High Cost

$12,308

See Furnace Cost Calculator Breakdown 

Average Cost Project Low-Cost Project High-Cost Project

Cost

Material

25,000 BTU gravity gas wall furnace

$972

Material

100,000 BTU gas-fired furnace with an A.G.A.-certified ignition system, including a new thermostat, chimney pipe, and filters

$4,369

Labor

Removing an old gas-fired furnace and replacing it with a new 100,000 BTU furnace, connecting it to an existing duct system

$1,423

Materials

150,000 BTU forced-air gas furnace with an A.G.A.-certified ignition system, including a new thermostat, chimney pipe, and filters

$5,423

Galvanized metal sheets for 5 new duct runs

$1,275

HEPA filtration module and central air humidifier, 20 gallons per day

$1,544

Labor

Installing a 150,000 BTU forced-air gas furnace, including new thermostat and piping

$2,924

Installing 5 new duct runs

$718

Installing a new central humidifier system and HEPA filter

$424

Total

$972

$5,792

$12,308

Furnace Cost by Type

The cost of your furnace is dictated by size, efficiency, location, and whether this is a new installation or replacement. One of the biggest driving factors in the total cost of installing a furnace, however, is the furnace itself.

Electric Furnace Cost

Electric furnaces cost the least to install, but this is slightly misleading. Electric furnaces are only rated for homes in heating zones 1 and 2, which is the southernmost part of the country. The furnaces themselves are smaller and tend to produce less heat. While electric furnaces are very efficient at converting energy to heat, they are expensive to run, which is based on the electricity price in your area. The furnace costs between $700 and $2,800, depending on the brand, and the total project cost is around $1,600 to $3,200, including installation.

Propane Furnace Costs

If natural gas is not an option, a propane furnace is the recommended choice. Propane is very efficient and releases fewer particulates into the air than oil. Make sure that propane delivery is available in your area before selecting this option. The furnaces cost between $800 and $4,100, and the total average cost for a new propane furnace with installation is $3,000 to $6,000.

Oil Furnace Costs

Oil is another option if natural gas is not available. Oil furnaces burn less fuel than other furnaces because oil tends to burn hotter, producing more BTUs. However, oil furnaces are dirty and expensive to run. They are a good choice for northern climates where gas is not available but are less common than gas or propane due to the high costs of heating oil. The furnace costs between $1,800 and $5,000, with a total project cost of approximately $5,000 to $9,000, including installation.

Gas Furnace Costs

Gas furnaces are the most popular and most often recommended type of furnace if you have access to a natural gas line. The gas cost is a fraction of what you pay to heat your home with other fuels. While the furnace may be slightly more expensive, you save a lot of money on your heating bills each winter. It is not often available in rural areas, which is why propane or oil are used alternatively. The furnace price is $2,000 to $6,000, and the total cost of the project, including installation, averages $3,000 to $8,000.

What Size Furnace Do I Need?

To get a general idea of the furnace size you need, consider your home size and climate zone. Consult the U.S. Energy Information Administration’s climate zone map to determine your zone number. The age and quality of your ductwork as well as the amount of insulation in your home further determine the exact size required.

Climate zones range from 1 - 5, with one being the hottest parts of the country like Florida and 5 being the coldest parts like Minnesota. Each zone has a base number of BTUs or British Thermal Units that you need to heat a square foot.

To determine the size of furnace you need, calculate your home’s square footage, and then multiply it by the range in your zone. Measure the length and depth of each heated room in your home and multiply these together to get your square footage. Add up all the rooms to get your total square footage.

Stay within 10% to 20% of the number of BTUs you determine in this calculation. If you are between two sizes, round up to the next nearest, but try not to go over 20% because this yields a furnace that is too large for your home.

Keep in mind that electric furnaces are only recommended for zones 1 and 2 and partial use in zone 3, but other furnaces are used in all zones. Make your decision based on the availability of the fuel you choose.

Below is a list of the average BTUs needed for homes located in zone 4 based on size.

New Furnace Installation Costs

Several things impact the cost of a new furnace installation, such as if you already have ducts, any ducts need replacing, or changing from one fuel type to another. If you previously had oil heat and a gas line was run to your neighborhood, a new gas furnace installation requires a gas line to be run from the main gas line to your home, which increases the cost of the installation. If you are getting propane for the first time and the company you contract with does not provide the tanks for free, factor in the cost of a propane tank and installation.

HVAC technicians charge between $50 and $100 an hour for their services, and a new furnace installation takes 2 - 3 hours just for the furnace installation itself. Installing a gas line, new vent, new ductwork, or a drain for high-efficiency models takes longer and increases the cost of the installation. This makes a wide range of costs for a new furnace - $2,000 - $12,000 installed for a gas furnace, $3,000 - $11,000 for an oil furnace, $1,800 - $7,000 for a propane furnace, and $900 to $4,000 for an electric furnace. It depends on the home and what already exists at the time of the new furnace install.

Furnace Replacement Costs

Furnace replacements have a similar range of costs as a new installation. Many times when the furnace needs replacing, the ducts also need repair or replacement, or you may choose to upgrade to a new high-efficiency furnace. This may require modifications to the system, such as a drain line for condensation or a new vent.

However, if you are replacing a furnace with no new modifications and no new ductwork, expect to have lower overall costs. The average cost ranges for a furnace replacement are similar to that of a new furnace, simply due to the many changes that these systems need to undergo when moving to a new model.

Factors Affecting the Cost of the Installation of Your Furnace

The cost of your furnace installation varies tremendously based on several factors. These include the furnace brand, age and condition of your ducts, furnace size, location in your home, and whether you already have the plumbing in place for the fuel and the exhaust vent.

Oil, gas, and propane furnaces need a line installed to fuel the furnace. Sometimes, this is done by the fuel company while at other times you are responsible for it. If the location is difficult to reach, a new fuel line is needed, or you are upgrading to a high-efficiency furnace that requires a drain, your installation costs more than in other scenarios.

Always have your entire system inspected before you purchase a new furnace to determine what upgrades or modifications might be required to better determine your final cost.

When to Replace a Furnace

Most furnaces last 10 - 15 years, and some may last up to 25 years with good maintenance. However, if your furnace is suddenly using more fuel, blowing cold air, or over 10 years old and you want to upgrade to a more efficient model, it may be time to replace your furnace.

Keep in mind that many issues are repairable, but if the cost of the repair approaches $1,000 and the furnace is more than 8 years old, replacing it might be the better choice because newer models are more efficient and save money on your heating bills.

High Efficiency Furnaces

Efficiency refers to how much energy is converted to heat. In many furnaces, the more efficient it is, the less fuel it uses, and the more money you save on your bills.

Electric furnaces, however, are the exception. They are the most efficient, using nearly 100% of the energy generated to produce heat. However, they usually cost the most to run due to the higher costs of electricity.

Standard efficiency continues to grow higher each year along with the definition of high efficiency. Standard efficiency is typically somewhere between 80% and 90%, while high efficiency is generally above 90%, although this number changes depending on your furnace. Gas and propane furnaces reach efficiency ratings of 98%. Oil furnaces are difficult to find in efficiency ratings above 90%. There are a few brands that make more efficient models - up to 95% - but your costs for these furnaces are much higher than those with standard efficiency.

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Furnace Ductwork Cost

If you are installing forced hot air for the first time or your system is older, you need to install or replace your ductwork as well. Ductwork costs vary depending on how many feet, insulation, and materials. The average cost to install ductwork is between $1,800 and $3,300 in addition to your other furnace installation costs.

Green Furnace Options

While furnaces are not the greenest method of heating your home, a few options make them a little greener and less expensive to run.

The first is a furnace/heat pump hybrid. This system determines the temperature of the air outdoors, and when it is cool, but not cold, it uses the heat pump to pull heat from the air rather than using gas. When the weather turns colder, it switches to the traditional furnace.

The other option is to use a furnace with an adaptable system. These furnaces use anywhere from 40% to 100% of their capacity, depending on the needs of the home. This is in contrast to traditional furnaces that use 100% of their capacity all the time. By lowering the capacity, you reduce the amount of fuel used.

Hybrid heat systems cost between $3,000 and $5,000 for the furnace, while adaptable systems cost $2,500 - $5,000 on average. Installation is a separate price.

Enhancement and Improvement Costs

Old Furnace Removal

Many HVAC companies remove your old furnace at no cost. Others charge a fee of between $50 and $200 to remove and dispose of it.

Hepa Air Cleaner or Humidifier

Installing a new furnace is a great time to also install either a HEPA air filter or a humidifier in your ductwork. The average cost for these is between $600 and $1,000.

Programmable Thermostat

You may also want to upgrade to a programmable thermostat to save money on heating bills by turning off the furnace during times when you are away. The cost of a new thermostat is $145 - $230 installed.

Additional Considerations and Costs

• Having your HVAC system periodically inspected helps it run more efficiently and last longer. The average cost of an inspection is between $210 and $260.
• If you install an energy-efficient furnace, you may qualify for a tax credit. Check with your accountant or HVAC specialist to find out if your furnace qualifies.
• Whenever you upgrade your furnace, you may need a new thermostat to work with the newer technology in the furnaces.
• In most areas, you need a permit before you have a furnace installed or HVAC system revised. Check with your town or city hall for more information.
• If you currently use a boiler system to heat your home, switch to a furnace by installing ductwork. Boilers use hot water, which travels through pipes. Furnaces heat air, which travels along ducts, so switching requires ductwork installation.
• Every furnace type has specific brands that specialize in it. However, some of the more popular furnace brands include Goodman, American Standard, Bryant, Carrier, and Lennox.​