The cost of a new furnace fluctuates between $1,600 and $10,000, with installation included. This wide range is because of the diverse amount of furnace varieties available. Electric furnaces are usually the cheapest ones, whereas gas and oil furnaces are more costly. Labor also has a role in how much you are going to pay for furnace installation..
We explored the most general furnace costs and created a guide detailing how different types of furnaces operate, their cost, and pricing factors to think about before purchasing a new one.
Furnace Installation
Avg. Installation Cost:
$1,600–$9,700
General Furnace Costs
Research has shown that the average cost of a furnace is $4,799, depending on several aspects, like fuel type and size. Note that costs can differ based on your location and your home’s size. It is suggested you request estimates from a furnace brand for detailed pricing.
| Furnace Type | Unit Cost |
| Electric | $2,000–$7,000 |
| Gas | $3,800–$10,000 |
| Oil | $6,750–$10,000 |
What Factors Impact Furnace Costs?
As mentioned above, furnace costs usually differ based on several aspects, including size, energy efficiency, type of fuel, installation costs, and brand.
Fuel Type
The biggest aspect impacting furnace costs is the type of fuel the furnace uses. Electric furnaces are the most budget friendly since they have more straightforward internal systems compared to their gas and oil counterparts. Natural gas and oil furnaces have supplemental internal parts and maintenance requirements, making them a costlier option. Many furnaces use optional fuel types, like firewood and propane. These variations may be better suited for you if you live in off-the-grid locations.
Energy Efficiency
You are going to typically see furnace efficiency represented by a rating called AFUE (annual fuel utilization efficiency). A high AFUE rating means the furnace transforms more of the energy it consumes into heat for your home, lowering your energy bills. These higher-efficiency models— which the DOE says have a ninety percent AFUE rating or higher—cost more upfront, but they save you money in the long run by using less fuel or electricity. If you live in colder climates, investing in a high-efficiency furnace probably makes more sense than if you reside in milder areas.
Furnace Size
The size of the furnace you require is subject to your home’s size and configuration. Manufacturers measure the size of a furnace in BTU’s. A furnace that is too small is going to strain to heat your home effectively, whereas one that’s too big can waste energy and cost more to operate. HVAC professionals determine the correct size by carrying out a load calculation, which factors in the home’s square footage, insulation, windows, and climate. Larger, more effective furnaces usually cost more than smaller ones.
Furnace sizes typically range from forty thousand to one-hundred and twenty thousand BTU. Generally, you are able to calculate the BTU for your home by multiplying the entire square footage by forty, with colder locations needing a bit more BTU per square footage.
What Are Additional Furnace Costs?
Like most home improvement endeavors, installing a new furnace has additional expenses. For instance, your local climate is going to establish the furnace volume you purchase, which impacts the total expense of the project.
Local Climate
The area in which you live plays a role in the kind of furnace you require and how much it is going to cost to operate. In colder areas, you are going to likely require a more effective and efficient furnace, which can be costlier. Nevertheless, if you live in a warmer area, a smaller, less costly furnace might be sufficient. Local energy costs—for electricity or gas—also influences the general operating costs of your furnace.
Installation
The cost to install your furnace is subject to how complex it is. When your home presently has the required ductwork and attachments, the installation may be streamlined and less costly. Nevertheless, if you require new ductwork, venting, or electrical advances, these can considerably increase the overall cost. Labor costs also differ subject to your location and the contractor you hire.
Brand
Like most home systems, furnace costs can differ considerably depending on the brand and features you select. Well-known, reputable brands are most likely going to be more expensive since they provide better dependability, warranties, and customer service. Furthermore, modern furnaces usually come with features such as variable-speed blowers, smart thermostats, and state of the are filtration systems, which can make your home more comfortable however also adds to the price.
When Should You Repair or Replace Your Furnace?
Choosing whether to repair or replace your furnace depends largely on the age, condition, and efficiency of your furnace. Whereas repairs are usually the most inexpensive alternative in the short term, there are instances in which replacing your present furnace makes more sense down the road.
Signs You Should Repair Your Furnace
Repairing your furnace may be a better alternative for your situation, subject to the condition of your existing furnace and your budget. For instance, a repair makes sense if your furnace is still somewhat new. The following are some additional signs to look out for that signify a repair is required:
- Low repair cost: As a rule of thumb, when the repair cost is less than half the price of a newer furnace, it’s typically worth repairing. Repairing straightforward issues, like replacing a blower motor or repairing a thermostat, is usually budget friendly and can keep your furnace operating for years.
- Low energy bills: If your furnace is still operating efficiently and your energy bills are unchanging, a repair might be all you require. Nevertheless, hiked up energy bills can signify that your furnace is struggling, which might indicate that it’s time for a replacement.
- Minor issues: If your furnace is making unusual noises, has an obstructed filter, or is not heating consistently, these could be minor issues that a professional can repair quickly. Routine maintenance can often stop these problems from happening again.
Signs You Should Replace Your Furnace
Oftentimes, replacing your furnace is the more realistic, cost-effective solution. For example, if your furnace struggles to maintain an unwavering temperature in your home or you’re experiencing recurring breakdowns, it might be time for replacement. The following are other signs to keep an eye out for:
- Costly energy bills: Even with routine furnace maintenance, dated furnaces lose efficiency after a while. When you notice a considerable increase in your heating bills, your furnace might be consuming more energy than it needs to. Updating to a high-efficiency model could save you money on energy expenses.
- Old furnace: As reported by the International Association of Certified Home Inspectors, furnaces usually last fifteen to twenty-five years. Nevertheless, as they get older, they turn out less efficient and more inclined to breakdowns. If your furnace is nearing the end of its life, it’s usually wise to invest in a new model instead of pouring money into recurring repairs.
- Costly repair estimates: If a repair to your furnace is going to cost more than fifty percent of the cost of a new one—or if it involves costly components such as the control board or heat exchanger—replacement is usually the wiser investment. A new furnace is going to come with a warranty and is going to save you from additional repairs in the future.
- Unusual noises or smells: Whereas some noises (such as minor rattling) are an easy repair, loud grinding banging, or screeching sounds can indicate serious internal problems. Similarly, when you smell gas, burning, or anything uncommon, it might be a sign of a dangerous issue. In these situations, replacing your furnace could be the safest alternative.
DIY vs. Professional Furnace Installation
Whereas the related savings of installing a new furnace on your own may seem appealing, it is not recommended it for several reasons. For instance, some furnace installations require the removal of your old HVAC system and related ductwork, which can be challenging to do without professional knowledge. A lot of manufacturers require professional installation to keep their manufacturer’s warranty effective, which gets invalid should you install it yourself.
Another reason it is recommended to hire a professional is that they are going to know how to properly install your new furnace without infringing local jurisdiction codes. It is known you risk violating these codes if you inadequately install your new furnace.
Tru Comfort Heating & Cooling In The Phoenix Valley
At Tru Comfort Heating & Cooling, we deliver reliable, efficient, and cost-effective solutions to enhance comfort and water quality. Whether you need HVAC installation, repair, maintenance, or water treatment solutions, our team is here to assist you every step of the way. Contact us today for exceptional service from an insured and bonded HVAC company. Experience reliable and efficient solutions that exceed your expectations.
