The national average cost of a standard efficiency natural gas furnace ranges from $2,150 to $5,900 with most homeowners paying around $3,100. The price may vary based on brand, complexity of install, and the efficiency of the unit. Get free estimates from furnace replacement pros near you.
A new furnace will be more efficient, last longer, and will save you money in the long-term because of efficiencies and you won’t have to keep calling the repair technician. If you’re thinking about replacing your existing furnace or choosing which one to install in your new home during the construction phase, consult with a licensed furnace installation professional to help. Your furnace pro can evaluate your home and determine the most cost-effective and best way to heat it.
The national average cost of a standard efficiency natural gas furnace ranges from $2,150 to $5,900 with most homeowners paying around $3,100. The price may vary based on brand, complexity of install, and the efficiency of the unit.
When deciding on which type of furnace to buy, it makes the most sense to go with the same fuel system as the old one because you already have an existing structure in place to support it. Most US homes have a gas furnace, while some of the more northern states use oil, and many rural areas have wood-burning furnaces. However, there could be reasons to change based on your house size, location, and energy bills.
Here is each type of furnace and their average costs:
|Furnace Type||Average Costs||Cost per 100,000 BTU|
|Gas Furnace||$1,200 – $2,400||$1.10|
|Electric Furnace||$700 – $2,000||$2.93|
|Oil Furnace||$1,900 – $5,900||$2.50|
|Average Furnace Cost||$2,150 – $5,900||$2.17|
Expect to pay $800–$1,500 to install your furnace. It should be done in one day and is usually carried out by two technicians. Obviously, it will cost more if you have additional work to do to get it up and running.
Craftsman’s 2018 guide says US average installation prices are as follows for a gas-fired forced air furnace:
|Furnace BTUs||Furnace Cost||Labor Cost||Total Cost|
|Add for each second-floor duct run||$101|
|Add for trunk run to a room addition||$621|
The total cost of of heating renovation includes: "Duct on interior walls. Includes a humidifier, filter, 5 to 8 galvanized sheet metal duct runs, registers and grilles, thermostat and electrical hookup, connection to gas line and gas piping, chimney vent and vent accessories, supply and return air plenums, system start-up and balancing. Installed in a one- or two-story home with conventional ducting. Add for wall, floor and ceiling patching as required.", says Craftsman.
Gas furnaces are the most popular and commonly used furnace, especially in areas with harsh winters. On average, gas furnaces cost around $1,200, or $2,400 when including installation.
If you'd rather use propane, gas furnaces can typically be converted to propane at a cost of $25-$100. This propane conversion kit includes replacing the gas valve, jets, and burners depending on the furnace.
The prices listed below are based on an average 1,800 square foot home that is using a 100,000 BTU furnace:
|Gas Furnace Brand||Furnace Cost (Parts)||Parts + Installation Cost|
According to Consumer Reports, the more reliable brands are Ruud, Trane, and American Standard, while the less reliable brands are Goodman, Lennox, York, and Amana.
Electric furnaces are less in demand than gas furnaces. They are popular in the southeastern United States where they don't have harsh winters. Electric furnaces are usually more expensive, not because the cost of the unit, but because the amount of electricity used to heat a house. On average, electric furnaces cost around $700, or $2,000 when including installation. Electric furnaces last almost twice as long as a gas furnace and can operate at a high efficiency.
The prices listed below are based on an average 1,600 square foot home in a climate that rarely drops below freezing. Your choice in brand will make a big difference in pricing. Top-brands attract the more qualified professionals, which in turn increases installation costs.
|Electric Furnace Brand||Furnace Cost (Parts)||Parts + Installation Cost|
|Average Furnace Cost||$795||$2,095|
Oil furnaces have been around the longest, but due to current oil prices, they are rarely used anymore. The cost of an oil furnace are much higher as well starting at $1,900 for just the furnace, all the way up to $5,900 for the furnace and installation.
The oil furnace prices below are based on a 1,800 square foot home with a 250-gallon oil tank.
|Oil Furnace Brand||Furnace Cost (Parts)||Parts + Installation Cost|
|Average Furnace Cost||$1,795||$5,900|
When you’re trying to decide which type of furnace to get, you’ll need to keep in mind a number of factors:
Any new furnace is going to be more efficient and quieter than your current old one because of the improved technology in use and EPA guidelines. Fuel efficiency in a gas furnace is measured in AFUE (Annual Fuel Utilization Efficiency)—how much heat a furnace produces from a cubic foot of gas.
The highest AFUE will generate the highest savings, but also consider the blower motor technology in furnaces you’re considering. A high efficiency AFUE starts at 90% and uses blower motor technology—used to circulate the warm and cold air in your home. This uses up less electricity to power the furnace.
They also provide a helpful table, shown below.
Expect to pay more for a more energy efficient unit. Seeing how much you’ll save compared to your current electricity and gas bills can help you decide if the extra expense is worth it.
Buying an environmentally friendly furnace not only helps keep the air clean, it can also keep a few more dollars in your wallet. Your options include, Solar panels, geothermal, and other environmentally beneficial heating systems like wood. However, the upfront costs can be much higher which will take longer to recoup your initial investment, even over the life of your home. The government also offers a 30% tax credit for some type of green heating systems.
Buy a furnace that’s too big and it could damage the unit because it’s switching on and off too often. Buy one that’s too small and it will run too much and never get you warm enough. The size furnace you buy depends on many factors:
Heating ability is measured in BTUs—British Thermal Units—and the number of units shows how many units of heat your furnace will produce at 100% efficiency. However, 100% efficiency does not yet exist, so to find the exact BTUs your furnace will produce, you have to multiply the input BTU by the efficiency % to find the output BTU. Homes typically require 30 to 60 BTUs per square foot.
Most online load calculators will factor in which climate zone you are in to give you the most accurate BTU number for your home, but they don’t factor in your home’s insulation or other factors mentioned in #1–#3 above. Keep in mind that a customized calculation by a furnace installation professional who has been out to your home will give the most accurate/effective calculation. Some examples are as follows:
Price ranges from $50–$155 and depends on disposal fees and local regulations re the disposal.
Replace existing ductwork costs $110 to remove, $12–$20/foot to install on the second floor, $24–$38/foot in walls. Add $1.90/sqft of surface for insulation.
Especially if you live in an older home, you’ll need to have your contractor assess your current ductwork to see if it is wide enough and insulated enough to support your new furnace. He/she will calculate the heat each room needs and add or deduct points for large windows, room vents, and airflow. Then he/she will check the main ducts and transition points in your walls, basement, and attic and maximize heat flow based on the location of the furnace. Air ducts, vents, and return ducts can be sized for each room.
More electrical power will cost $40–$85/hour for installation. Two-wire electrical cable can only support a 15-amp ungrounded circuit, and if you’re installing an electric furnace, you’ll need to replace it with 20-amp grounded circuits.
Some older, fan-assisted, noncondensing furnaces and boilers vent horizontally through a plastic pipe which has since been recalled and must be replaced. Horizontal ventilation can also mean there isn’t enough draft and you’ll need to install an additional draft-inducing fan. Floor furnace vents also might need to be replaced, and older chimneys will have to be adjusted until they are up to code with your new furnace and carry out your combustion fumes properly.
Inspections will cost you – $150–$175, while a full report for insurance companies costs around $690. If you’d like an in-depth inspection of your whole house HVAC effectiveness, a certified HVAC contractor can do that for you. They’ll check the vents, heat exchanger, fuel lines for leaks, blower, blower seals, air intake grills, burner’s pilot or ignition, flame sensor, electrical connections and wiring, thermostat calibration, flue, thermocouple, combustion gases, safety controls, belts, and air filter. They’ll also clean your blower components and blower wheel and do an amp-draw test on it, test the burner, plus lubricate all the motor’s moving parts and check the manifold gas pressure (if you have a gas furnace).
Adding a programmable thermostat for between $15–$320 can save up to 10% when programmed properly. Save on heating expenses when you are away, or add more than one thermostat for different rooms, if the system allows for it. That way you can avoid venting heat into unused bedrooms all day and heat them at a lower temperature at night. Prices range from $15 for a very basic panel to an app-controlled digital display panel for $320. Nest and Ecobee are the top recommended digital brands. Buy a 7-day model if your schedule is different every day, or a 5-1-1 or 5+2-day model if you keep the same weekly and weekend schedules.
Even if you fork out for a brand-new, state-of-the-art furnace, your house won’t necessarily heat up as much as you want it to if your home and furnace aren’t kept in optimal condition.
Most furnaces come with a 10- to 15-year warranty. The warranty will carry more weight if it’s from a big-box brand, because it means they’ll still be around to honor it fifteen years from now. Warranties usually only cover the two main parts of the furnace*:
Most warranties are only honored if you register the product at the time of purchase. *Warranties will not cover the labor needed to fix any part. Some contractors offer better warranties than others on labor.
Rebates - Energy utility companies in many states offer rebates for your furnace purchase. See if your company is listed here.
Tax credits - Gas furnaces that are ENERGY STAR certified (except those for U.S. South only) meet the requirements for the furnace tax credit. Gas and oil furnaces that have earned the ENERGY STAR include fans that meet the AFUE >= 95 requirements of the fan tax credit.
Tax Credit Amount: $150. To apply for the energy efficiency tax credits, you need to file the IRS Tax Form 5695 and submit it with your taxes. Save your receipts and the Manufacturer's Certification Statement for your records.
Savings - ENERGY STAR certified gas furnaces are “11–15% more efficient than standard models and can save an average of $27–$75 a year in energy costs.” “Certified oil furnaces are up to 4 percent more energy efficient than baseline models and can save up to $65 in energy costs per year.”
Sometimes you can get a great deal on labor by asking your local trade school if they have a hand-on training portion of their curriculum whereby students can install your furnace while supervised by a licensed contractor/professor. It will take a little longer but the price will be lower.
When choosing your installation contractor, you want to find someone who will install your furnace with excellence and who gives you a proposal in the same price range as other good contractors on your shortlist. Get at least three proposals, followed by a written contract from the contractor of your choice. What most homeowners experience is that the lowest bid gets them the worst-quality work.
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