How much does a high-efficiency furnace cost?
How much does a high-efficiency furnace cost?
$3,800 – $11,500 average total cost with installation
High-efficiency furnace cost
A high-efficiency furnace costs $3,800 to $11,500 on average with professional installation or $2,300 to $8,500 for the unit alone. High-efficiency furnace prices depend on the brand, model, and features, the BTU size, installation complexity, and local labor and permit costs.
| Factor | Average cost |
|---|---|
| Furnace unit & materials | $2,300 – $8,500 |
| Labor | $1,500 – $3,000 |
| Total cost | $3,800 – $11,500 |
High-efficiency furnaces have an Annual Fuel Utilization Efficiency (AFUE) rating of 90% or higher. A furnace with a higher AFUE rating produces more heat with less fuel, reducing your fuel costs.
Many high-efficiency furnaces are eligible for tax credits and rebates.
High-efficiency furnace prices by brand
When shopping for a high-efficiency furnace, the brand, warranty offerings, and features all influence the price. The table below shows the average prices for high-efficiency furnaces from major manufacturers, not including the cost of installation labor:
| Brand | Average price* |
|---|---|
| American Standard | $2,500 – $5,200 |
| Bryant | $2,500 – $5,500 |
| Carrier | $2,500 – $5,700 |
| Coleman | $3,000 – $7,000 |
| Goodman | $2,300 – $5,400 |
| Lennox | $2,600 – $8,000 |
| Rheem / Ruud | $2,300 – $6,500 |
| Trane | $2,500 – $8,500 |
| York | $2,300 – $6,000 |
*Unit only; not including installation
Premium brands like Lennox and Trane typically offer the most advanced features and longest warranties, which explains their higher price points.
Mid-range brands like Carrier and Bryant offer excellent reliability and good warranties.
Budget-friendly options like Goodman provide solid performance at a lower price point but may have fewer advanced features.
HE furnace cost factors
The following factors affect the cost of a high-efficiency furnace with professional installation:
Furnace size / BTUs: A furnace’s heating capacity is measured in British Thermal Units (BTUs). Larger homes require furnaces with higher BTU outputs, which cost more. A properly sized furnace for your home is crucial for efficiency and comfort.
Brand: Furnace prices vary significantly between brands. Premium brands cost more but often offer better warranties, reliability, and advanced features.
Labor: Installation costs depend on your location, the complexity of the installation, and the reputation of the HVAC company.
Old furnace removal & disposal: Removing and properly disposing of your old furnace costs $150 to $400. Many installers include this service in their installation quote.
Permits: Most cities require a permit for installing or replacing a furnace. Permits cost $50 to $200+, depending on your location.
Additional costs
High-efficiency furnaces often require different venting systems than standard furnaces. If your existing ductwork or vents need modifications, ductwork costs can add $500 to $2,000+ to the total project expenses.
The new furnace may also require an updated thermostat to function with maximum efficiency. Thermostat replacement costs $140 to $350 on average.
Gas vs. electric high-efficiency furnace
Gas high-efficiency furnaces are the most common type and use natural gas or propane as fuel. They achieve efficiency ratings of 90% to 98% AFUE by incorporating condensing technology and sealed combustion systems.
Electric high-efficiency furnaces typically cost less and can achieve nearly 100% efficiency at converting electricity to heat. However, due to the higher cost of electricity compared to gas in most regions, their operating costs are typically higher despite the excellent efficiency rating.
High-efficiency furnace AFUE ratings
The AFUE (Annual Fuel Utilization Efficiency) rating is the standard measure of furnace efficiency. Here is what different AFUE ratings mean:
80% to 89% AFUE: Standard efficiency; not considered high-efficiency
90% to 92% AFUE: Entry-level high-efficiency
93% to 95% AFUE: Mid-range high-efficiency
96% to 98% AFUE: Premium high-efficiency
For every $100 spent on fuel:
An 80% AFUE furnace delivers $80 worth of heat to your home.
A 95% AFUE furnace delivers $95 worth of heat to your home.
This 15% difference in efficiency translates to proportional savings on your heating bills. In cold climates, this can mean hundreds of dollars saved annually.
FAQs about high-efficiency furnaces
What is a high-efficiency furnace?
A high-efficiency furnace is a heating system with an AFUE (Annual Fuel Utilization Efficiency) rating of 90% or higher. This means at least 90% of the fuel consumed is converted into heat for your home, losing 10% or less through exhaust.
In contrast, older standard-efficiency furnaces typically have AFUE ratings of 85% or lower, which means more energy is wasted during operation.
High-efficiency furnace models are designed with advanced technology to extract as much heat as possible from the fuel before venting exhaust gases. This results in lower utility bills, reduced environmental impact, and more consistent heating throughout your home.
Are high-efficiency furnaces worth it?
For most homeowners, high-efficiency furnaces are worth the investment for several reasons:
Energy savings: While the upfront cost is higher than standard models, the energy savings over the furnace's lifetime often offset the initial premium. Homeowners in colder climates with high fuel costs see the greatest return on investment.
Environmental benefits: Higher efficiency means less fuel consumption and fewer greenhouse gas emissions.
Improved comfort: Advanced features like variable-speed blowers and modulating gas valves provide more consistent heating and better temperature control.
Tax credits and rebates: Federal, state, and local incentives can significantly reduce the net cost of a high-efficiency furnace.
Higher home value: Energy-efficient appliances can increase your home's resale value.
Do high-efficiency furnaces last longer?
High-efficiency furnaces have a similar lifespan to standard models, ranging from 15 to 20 years with proper maintenance. However, they often include higher-quality components and more advanced technology, which can contribute to longevity when properly maintained.
The lifespan of a high-efficiency furnace depends on usage patterns, local climate conditions, installation quality, and maintenance. To maximize your furnace’s lifespan, schedule annual professional maintenance and change the filters as recommended by the manufacturer.
Are high-efficiency furnaces quieter?
Yes, high-efficiency furnaces are quieter than standard models for several reasons:
Variable-speed technology: Many high-efficiency furnaces use variable-speed blowers that operate at lower speeds most of the time, reducing noise.
Better insulation: Premium high-efficiency models often include enhanced cabinet insulation to dampen operational sounds.
Soft-start technology: Advanced models gradually ramp up to full power rather than starting at full blast, reducing the noise associated with system startup.
Sealed combustion: The sealed combustion chambers in high-efficiency furnaces can reduce combustion noise.
The quietest high-efficiency furnaces operate at around 40 decibels on low settings, comparable to a library whisper, while standard furnaces typically operate at 60+ decibels.
Getting estimates from furnace installers
Hiring an experienced furnace installer is crucial to ensure safety, quality, and warranty eligibility. Follow these tips to find the best company for furnace installation near you:
Compare quotes from at least three furnace installers.
Look for HVAC installers with certification from organizations like North American Technician Excellence (NATE) and the American Society of Heating, Refrigeration, and Air-Conditioning Engineers (ASHRAE).
Read their reviews on HomeGuide and Google.
Choose a company that is licensed, insured, and has been in business for 5+ years.
Request copies of the itemized estimates, heating-load calculations, warranties, and contracts.
Beware of the unusually low estimates, which often indicate lower-quality installations.
Avoid paying in full before the project starts. Make a payment schedule for work completed to avoid scams.
Questions to ask HVAC companies
Ask installers these important questions to ensure you hire a reputable company:
How long have you been installing furnaces?
How many high-efficiency furnaces have you installed?
Are you licensed and insured?
Are you NATE-certified?
Which furnace brands do you install?
How will you determine the furnace size needed for my home?
Will the installation require any modifications to the ductwork or vents?
Does the estimate include permits and inspection fees?
Does the estimate include removing and disposing of the old furnace?
Will the furnace qualify for any tax credits or rebates?
What is the warranty for the new furnace?
Do you provide a warranty on your labor?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.