How Much Does It Cost to Install a New Furnace?

Are you interested in the cost to install a new furnace? Discover everything you need to know about new furnace installation. Nationally, a new furnace costs about $2,954. Of course, the actual price depends on the type. Here’s what you need to know.


Did your electric bill skyrocket? Does your furnace operate poorly? Perhaps you’ve noticed strange sounds or odors coming from your heating system.

These are clear indications that your furnace may be nearing the end of its life. If that’s the case, here’s everything you need to know about the cost of getting a new furnace.

What Is the Cost of a New Furnace?

A new furnace costs between $1,500 and $6,500, depending on the type. Installing a mid-efficiency furnace typically costs between $1,505 and $2,572. Annual fuel utilization efficiency (AFUE) ratings of 80 to 89 percent are typical for mid-efficiency furnaces.

The cost of installing a high-efficiency furnace is between $3,2160 and $5,230. They have an AFUE rating of 90% to 97%. PVC pipe is used to vent high-efficiency furnaces through the wall.

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What Affects the Costs of a New Furnace?

Along with the initial furnace installation cost, there are many additional factors to consider:

Source of Energy

Electricity, natural gas, and oil are the three primary fuel sources for furnaces. Calculate the cost of various fuel sources in your region to determine the cost of operating each kind of furnace. If you want to change the energy source for your new furnace, extra work charges may apply.

Gas and oil stoves provide tremendous amounts of heat, which makes them more popular in cold regions. It is essential to do annual maintenance on all kinds of heating systems, especially gas furnaces. Consider the maintenance expenses if you select a gas furnace.

Furnace Efficiency

A higher AFUE rating indicates that the furnace is using more of the heat generated. A furnace with an AFUE of 90% or more wastes 10% of the fuel needed to heat your house. Furnaces with a higher AFUE rating are also more expensive.

To strike a compromise between energy efficiency and installation costs, choose a furnace with an AFUE rating of 90% to 95%. Repair expenses are lower in this range than they are for furnaces rated at or above 95%.

Size of the Furnace

When calculating the amount of furnace you need, the expert will consider these factors around your house:

  • Landscape
  • Construction
  • Square footage

A furnace that is too small will not adequately heat your house. While a furnace that is too big may have a brief cycling process.

Furnace Installation Cost

You may buy your furnace independently from the installation. Installing a new furnace costs between $950 and $1,150 and takes about 10.5 hours.

Furnace installation is not a do-it-yourself project. It needs specialized expertise and training. This is why installation professionals are obliged to be qualified by law.


Several furnaces come with a manufacturer’s guarantee. A furnace company often adds a labor warranty. Manufacturer warranties may last up to ten years, but you must adhere to the maintenance recommendations.

Certain manufacturers need registration to claim the furnace’s warranty. Typically, furnace installers provide a one-year warranty.

Ongoing Maintenance

Along with yearly maintenance, you’ll need to replace the air filter in your furnace every one to three months. Certain models of furnaces have a filter that requires regular cleaning. Changing or cleaning the air filter and maintaining your system regularly can help you save money.

A furnace tune-up typically costs between $100 and $125. This is less expensive than a major furnace repair. Air filters are quite cheap, costing between $4 and $30.

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Install a Furnace Yourself: What Is the Cost?

Installing a furnace is not a do-it-yourself project. A furnace that has been placed improperly may pose a health and safety risk. The furnace must be correctly linked to vents and gas lines to avoid spreading carbon monoxide.

Avoid the hassle and employ a professional to perform the work correctly.

Calculate The Total Cost of Furnace Installation

The cost of installing a new furnace varies depending on the model you select and the type of furnace you previously had.

For example, switching from an oil to a gas furnace would need new gas lines. While installing a geothermal system may require new ducts.

What you may anticipate paying is as follows:

  • $2,300–$7,200 for a new furnace
  • $150–500 per hour for the installation labor
  • Removal of an old furnace: $60–$500
  • $250–$800 for new gas lines
  • $3,000–$5,000 for new ducting

Keep in mind that you will need to get permits and inspections. Both have a range between $400 and $1,500.

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How Much Does a Furnace Installation Cost by Type?

The climate in your area has a significant effect on the kind of furnace you should install in your house. A northern Minnesota lake home will need a more powerful furnace than a New Orleans Creole-style charmer.

HVAC Brands

The cost of installing a new furnace varies according to the model you choose and the size of your home. The following table summarizes the usual pricing ranges by type:

  • $3,800–$10,000 for gasoline
  • $2,000-$7,000 for electricity
  • $6,750–$10,000 for oil
  • $5,000–$15,000 Mini-Split
  • $4,000–17,000 dollars for Geothermal

By now, you should know that getting the best furnace is a pricey endeavor.

Gas Furnace Brand

   Average Equipment Cost    

Average Installation Cost

Payne $2,112 $3,650
Goodman $802 $2,500
Heil $1,700 $3,250
York $2,521 $4,003
Coleman $1,909 $3,489
Amana $2,419 $3,983
Daikin $1,003 $2,500
Bryant $2,211 $3,833
Rheem $2,515 $4,171
American Standard $2,890 $4,458
Ruud $2,750 $4,311
Trane $2,712 $4,400
Carrier $2,777 $4,400
Lennox $1,709 $3,310

Oil Furnace Brand

   Average Equipment Cost

 Average Installation Cost

Armstrong $2,203 $7,000
Ducane $2,128 $7,000
Rheem $2,300 $7,100
Olsen $2,100 $6,990
Williamson $1,899 $6,940
Miller $2,231 $7,112
Carrier $2,600 $7,500
Lennox $3,200 $8,100
Thermo Pride $2,411 $7,067
Trane $1,999 $6,623

Electric Furnace Brand

   Average Equipment Cost   

Average Installation Cost

Goodman $850 $2,300
Heil $950 $2,450
Coleman $523 $2,087
Rheem/Ruud $892 $2,350
Bryant $855 $2,352
York $952 $2,500
Carrier $518 $2,099
Trane $1,077 $2,599
Lennox $840 $2,300
American Standard $1,107 $2,650

How To Tell If Your Furnace Is Failing?

If you see any of the following problems, schedule a repair immediately:

Furnace Age

As your furnace ages, you should prepare to replace it. An outdated furnace may struggle to heat your house properly. Increased energy costs and a broken heat exchanger are indicators that it’s time to replace your furnace.

A heat exchanger is a high-priced component to replace. Because older furnaces lose efficiency over time, there is only so much an HVAC expert can do to improve an older system. As a general guideline, never fix anything if the repair cost exceeds one-third the cost of replacement.

Monthly Bill Increases

Frequently, dirty air filters and internal components are to blame. This is why it is critical to have proper maintenance. During a tune-up, a specialist will clean the interior parts of your furnace.

Inefficient Heating

If your furnace is not very old, inefficient heating is usually an issue that may be resolved with a repair or a tune-up. Filters that are clogged limit airflow in the furnace, resulting in ineffective heating. Thermostat malfunctions may lead to a failed furnace.

You can replace the batteries. If this does not work, an experienced HVAC technician can help.

How To Pick The Right Size Furnace

If you’re buying a new furnace you want to make sure that you get the right size so you can adequately keep your home. Getting a unit that is too small will wear the system down fast, and it will be very difficult to bring your home to a comfortable temperature. Getting a new furnace system that is too large will be a waste of money. Here’s a chart to help you out.

Home Size

Furnace BTU

Central AC Unit Size

1,200 sq. ft 50,000 BTU 1.5 to 2 tons
1,200 to 1,500 sq. ft 55,000 BTU 2 tons
1,500 to 1,800 sq. ft 60,000 BTU 2.5 tons
1,800 to 2,500 sq. ft 70,000 BTU 2.5 to 3 tons
2,500 to 3,500 sq. ft 90,000 to 100,000 BTU 3.5 to 4 tons

Furnace Brands to Consider

Here’s a list of some of the top furnace brands, along with brief descriptions for each:

  1. Trane:
    • Description: Known for its durability and high-performance products, Trane furnaces often come with advanced features like variable-speed blowers and modulating burners. Their Climatuff® compressor is an industry benchmark for reliability.
  2. Carrier:
    • Description: Carrier is recognized as an industry pioneer and offers a wide range of energy-efficient furnaces with advanced technological features, often being at the forefront of HVAC innovation.
  3. Lennox:
    • Description: Lennox offers a combination of efficiency, reliability, and advanced technology in their furnaces. Their premium models often boast impressive AFUE ratings, showing exceptional energy efficiency.
  4. Goodman:
    • Description: Goodman is known for offering affordable and reliable furnaces. They are also renowned for their comprehensive warranty programs, ensuring long-term peace of mind.
  5. Rheem:
    • Description: Rheem furnaces are reliable and designed for efficient operation. With a long-standing history in the industry, Rheem consistently delivers products that are well-reviewed by consumers.
  6. York:
    • Description: A part of the Johnson Controls family, York furnaces are known for their reliability and efficient performance. York offers a variety of models to fit different needs and budgets.
  7. Bryant:
    • Description: Bryant, closely related to Carrier, offers a wide range of dependable and energy-efficient furnaces. They have models suitable for various climates and home sizes.
  8. American Standard:
    • Description: A sister brand to Trane, American Standard furnaces are recognized for their quality construction, reliable performance, and energy efficiency.
  9. Ruud:
    • Description: Ruud is a trusted name in the HVAC sector, offering a range of durable and efficient furnaces. Their products are designed with the latest technological advancements, ensuring optimal performance.
  10. Amana:
  • Description: Amana furnaces are known for their durability, with many models featuring a stainless-steel tubular heat exchanger. They also have a reputation for being reliable and offering excellent warranty programs.

While these are some of the top brands, it’s essential to consider factors like specific model reviews, regional service support, warranty terms, and individual requirements before making a purchase decision. Consulting with an HVAC professional can also provide valuable insights tailored to one’s specific needs.

Finding a Reputable HVAC Service

As you can see, the cost of installing a furnace varies significantly depending on various factors. The most critical element on the price is the HVAC firm that serves you. It can be challenging to find an affordable service, but we can help.

After all, you don’t want to ignore the sound of an old furnace. It can jack up your electric bill. If you’re in the market for a new furnace, get a quote with us to ensure you receive the best deal possible.


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