Furnace Installation Cost

National average

$3,000 - $5,000

(2000 sq.ft. home - propane/oil furnace)

Low: $2,000 - $4,000

(electric furnace)

High: $5,000 - $7,000

(natural gas furance)

Cost to install a 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 a furnace is $3,000 - $5,000.

In this guide

Electric
Oil-Fired
Natural Gas
Enhancements
Additional Considerations

How much does it cost to install a furnace?

A furnace system is incredibly important to any home, but not every type of furnace fits every type of home. Furnaces vary based on price, efficiency, size, and other features. Read on to find which of the four most common types of furnaces (oil, propane, electric, and natural gas) is best for your home.

When looking at the types of furnaces, we'll consider them for a standard 2000 square foot home.

Electric

Although they are some of the most expensive to run, electric furnaces are also some of the most popular because they are reliable, clean, and safe. For a 2000 square foot home, the average cost of an installed electric-fired furnace falls in the $2000-$4000 range.

Propane

Propane¹ furnaces aren't as common, but they can be installed and run anywhere in the country. The relatively low overall cost makes them a great option for budget homeowners in all locations. For a 2000 square foot home, an installed propane¹ furnace averages $3000-$5000.

Oil-Fired

Oil-fired furnaces are a popular option in areas that have limited access to natural gas. They provide homeowners independence from gas and electric companies while still providing efficient heat. For a 2000 square foot home, the average cost of an installed oil furnace falls in the $3000-$5000 range.

Natural Gas

Natural gas is the most common type of heating system. It is efficient, but your home needs to be on a gas line to access the fuel, which makes it less advantageous in outlying areas. For a 2000 square foot home, an installed furnace averages $5000-$7000.

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 blowers² that move air slower when less heat is needed and variable heat output that automatically adjusts the heat output. Additional features can add $500-$800 to your furnace price.
Additional furnace components that make your home safer and more comfortable, such as a HEPA air cleaner or humidifier, can be added to a standard furnace. These features improve air quality and breathability but will cost an extra $400-$800 per item and can be harder to coordinate with oil furnaces than with natural gas or propane¹ furnaces. If you add an air cleaner and humidifier to your furnace, add an extra $1000 to your budgeted costs.
High-efficiency and Energy Star-approved furnaces of all types may be eligible for tax credits. Check with an heating, ventilating, and air conditioning (HVAC) specialist or contractor for specific details.

Additional considerations and costs

Electric furnaces have the lowest upfront cost, but come with higher heating expenses and monthly bills. Electric furnaces are also very efficient, with an Annual Fuel Utilization Efficiency rating of close to 100%.
Propane¹ furnaces are fairly inexpensive to install and maintain.
Oil-fired furnaces have a low upfront cost, but can be more expensive to maintain.
Natural gas furnaces are expensive to install, but fairly inexpensive to maintain.

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