Ashburn, VA

How Much Does a New Furnace Replacement Cost?
$2,150–$5,900

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.

How Much Does It Cost To Install A Furnace?

Author: Daniel W.
Millions of people ask HomeGuide for cost estimates every year. We track the estimates they get from local companies, then we share those prices with 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.

This pricing guide covers:

Furnace Prices

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

Furnace Installation Labor Costs

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
80,000 BTU $2,250 $1,528 $3,778
100,000 BTU $2,460 $1,583 $4,043
125,000 BTU $2,810 $1,638 $4,448
150,000 BTU $3,040 $1,710 $4,750
175,000 BTU $3,050 $1,783 $4,833
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.

Furnace Installation Replacement

Gas Furnace Prices

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.

Advantages

  • A gas furnace might be the cheapest to purchase and install because it doesn’t require fuel storage.
  • Issues are minimal, and many homeowners can repair issues themselves.
  • Service calls $70–$160. Parts installed $70–$1,375.
  • Heats up a home faster than an electric furnace, and heats up to a higher temperature in extreme cold.
  • Cost of natural gas = $1.10 for 100,000 BTU. Heating natural gas creates 10,000 BTUs of heat per gallon equivalent to heating oil (read more).
  • Natural gas is a good bit cheaper than electricity, depending on what your local gas provider charges. Uses gas wisely in an HVAC system.
  • A gas furnace will last 10–20 years.

Disadvantages

  1. Monitoring must be ongoing to maintain safety in the home and keep carbon monoxide emissions out.
  2. Gas furnaces release low levels of carbon monoxide fumes, but many companies are resorting to fracking to find it.
  3. Installation can be complex if you don’t have existing natural gas lines to the house.

Gas Furnace Prices by Brand

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
Payne $650 $1,850
Goodman $720 $1,900
Coleman $750 $2,250
York $800 $2,200
Amana $850 $2,485
Rheem $1,050 $2,990
Carrier $1,100 $3,100
Ruud $1,150 $3,200
Trane $1,300 $3,500
American Standard $1,300 $3,600
Lennox $1,350 $4,100
Average Cost $1,150 $3,100

What are the most reliable gas furnace brands?

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.


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Electric Furnace Prices

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.

Advantages

  • An electric furnace might be the cheapest to purchase and install because it doesn’t require fuel storage. Installation is quick.
  • Maintenance is minimal, and many homeowners can repair issues themselves. Service calls $75–$170. Parts installed $75–$775.
  • Runs quietly.
  • Performs better in areas with mild/moderate climates, but newer models are more efficient.
  • An electric furnace will last 20–30 years.
  • Dependence on power plants with coal, gas, or oil generators is falling, and sourcing more natural resources is on the rise.

Disadvantages

  1. Takes longer than a gas furnace to warm up the home. Doesn’t transfer heat.
  2. Cost of electricity = $2.93 for 100,000 BTU
  3. Running an electric furnace can be expensive, depending on what your local electricity provider charges. It uses a lot of power when trying to warm up a home if it’s part of an HVAC system (heating, ventilation, and air conditioning).
  4. Doesn’t release carbon monoxide fumes, but electricity is mostly generated by power plants with coal, gas, or oil generators.
An alternative is to install an electric heat pump. It’s more efficient and uses less electricity, transfers heat in the home, and might even offer thermal storage.

Electric Furnace Prices by Brand

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
Goodman $379 $1,560
Payne $455 $1,650
Amana $579 $1,690
Coleman $493 $1,850
Rheem $495 $1,825
York $575 $1,900
Carrier $795 $2,095
Trane $1,095 $2,195
Lennox $1,095 $2,260
American Standard $1,150 $2,300
Average Furnace Cost $795 $2,095

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Oil Furnace Prices

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.

Advantages

  • Service it each fall. Service calls $70–$160. Parts installed $70–$775.
  • Heating oil is not explosive.
  • An oil furnace will last 16–20 years.
  • Oil furnaces can release carbon monoxide fumes.
  • “In a 2004 issue of Oil & Energy, it was reported that a German study found that heating oil is more environmentally friendly than natural gas, in terms of overall emissions.” — Petro
  • Heating oil creates 140,000 BTUs of heat per gallon.

Disadvantages

  1. An oil furnace requires fuel delivery and storage on your property. Installation will include the storage container.
  2. The smell of oil can mean there is a crack in the burner. Check regularly for oil leaks.
  3. Oil can cost about double what it costs to run an electric furnace.
  4. Cost of heating oil = $2.50 for 100,000 BTU.
See how much you’ll save if you switch fuel sources. The size of your furnace should match the size of the home. If you buy one too small or too big, you’ll waste fuel.

Electric Furnace Prices by Brand

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
Armstrong $1,295 $4,400
Rheem $1,510 $5,250
Olsen $1,595 $5,350
Williamson $1,695 $4,500
Carrier $1,795 $5,910
Lennox $1,850 $6,100
Thermo Pride $2,100 $6,850
Trane $2,195 $6,550
Average Furnace Cost $1,795 $5,900

What Type of Furnace Should You Install?

When you’re trying to decide which type of furnace to get, you’ll need to keep in mind a number of factors:

  • Upfront cost for the furnace and its installation.
  • Durability/maintenance costs. You’ll find that the bigger the brand name and the more expensive the unit, the higher the maintenance cost from that brand’s certified technicians.
  • Heat output/efficiency/BTU (a traditional unit of heat; it is defined as the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit). Keep in mind that even if a certain fuel is more expensive, the efficiency of the unit can cancel that difference out or override it.
  • Time in service
  • Carbon footprint

New Furnace Replacement

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Furnace Efficiency

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.

For example, if a furnace is rated 85% AFUE, it means it’s only giving you $0.85 worth of every dollar you’re spending on running it.

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.

  • Blower motor technology – standard, constant torque, and variable speed motors
  • Standard motor – cheapest but the least energy efficient
  • Constant torque – a bit more energy efficient
  • Variable speed – automatically adjusts heat and airflow output in small or large increments as needed, which uses less gas and lowers your energy costs
  • Modulating valve – Present in some of the more expensive furnaces, this valve works with the variable speed blower to regulate the incoming gas.
Energy.gov says, “You can identify and compare a system's efficiency by not only its AFUE but also by its equipment features.”

They also provide a helpful table, shown below.

Old, low-efficiency heating systems:

  • Natural draft that creates a flow of combustion gases
  • Continuous pilot light
  • Heavy heat exchanger
  • 56% to 70% AFUE

Mid-efficiency heating systems:

  • Exhaust fan controls the flow of combustion air and combustion gases more precisely
  • Electronic ignition (no pilot light)
  • Compact size and lighter weight to reduce cycling losses
  • Small-diameter flue pipe
  • 80% to 83% AFUE

High-efficiency heating systems:

  • Condensing flue gases in a second heat exchanger for extra efficiency
  • Sealed combustion
  • 90% to 98.5% AFUE

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.

Green furnace options

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.

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Considerations for Furnace Replacement

Load and BTU Calculations

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:

  1. Your home - how many windows in the home, how well insulated the home and ductwork are, what size the home is, the sizes of rooms, how many stories the house has, how much of that square footage need to be heated.
  2. The efficiency of the unit – how much fuel is used to heat the incoming air.
  3. The outdoor temps - You also need to take into account what the outside temperatures are during the winter months, because it will take a furnace longer to heat up incoming air if it’s -10 F outside compared to if it’s 48 F.

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:

Zone 1 - Warmest

Home 1

  • 25,000 output/effective BTUs
  • 1,300 sqft home
  • No basement or crawlspace
  • 1 floor
  • Basic insulation
  • Desired indoor heat 78 F

Home 2

  • 32,000 output/effective BTUs
  • 2,600 sqft home
  • No basement or crawlspace
  • 2 floors
  • Outstanding insulation
  • Desired indoor heat 78 F

Zone 5 - Coldest

Home 3

  • 52,000 output/effective BTUs
  • 1,300 sqft home
  • No basement or crawlspace
  • 1 floor
  • Basic insulation
  • Desired indoor heat 78 F

Home 4

  • 65,000 output/effective BTUs
  • 2,600 sqft home
  • No basement or crawlspace
  • 2 floors
  • Outstanding insulation
  • Desired indoor heat 78 F

Additional Furnace Replacement Costs

Old Furnace Removal

Price ranges from $50–$155 and depends on disposal fees and local regulations re the disposal.

Replace Existing Ductwork

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.

Some homeowners happy with the output of their current furnace can still retrofit their ductwork to maximize heat and airflow in each room. A typical home has 150 feet of duct.

Increase Electrical Power

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.

Ventilation

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

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).

Programmable Thermostat

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.

Programmable Thermostat Nest Heating

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Boost the Efficiency of your Furnace

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.

Heating system maintenance

  • Clean or replace filters regularly.
  • Make sure your heating ducts and vents are properly insulated and sealed.
  • Don’t block vents with furniture.
  • Keep your blower motor bearings well lubricated.
  • Vacuum the blower unit every few months (with the circuit breaker off!).
  • Test ductwork joints for air leaks and seal up using metal tape.
  • Get your furnace checked and cleaned according to the manufacturer’s instructions.

Save on Furnace Heating Costs

  • Use a programmable thermostat.
  • Check your indoor thermostat occasionally by comparing it to another thermostat you own. Place them side by side to see if they give the same reading.
  • Clean your chimney.
  • Service your furnace regularly.
  • Spin your ceiling fan clockwise to blow circulating heat down.
  • Insulate the home—seal ductwork and weather-strip doors and windows. Add insulation to your walls and attic.
  • Close curtains at night to keep heat in.

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Furnace Replacement Warranties

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*:

  • The heat exchanger – the central part of the furnace. A limited 20-year to lifetime warranty.
  • The main components - usually includes blower motors, electronic controls, igniters, and other key components. A limited 1- to 10-year warranty.

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, Tax Credits, and Savings

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.

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Tips When Hiring a Furnace Professional

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.

  1. HVAC Certified - Look for HVAC certified contractors. They will have the experience and knowledge needed—in plumbing, electrical work, framing, and brazing—to take care of all aspects of a gas, electric, or oil furnace installation.
  2. Licensed – has a current business license
  3. Bonded and insured – can pay claims (up to a certain amount) you make against the company
  4. All employees have been background checked
  5. Highly rated on review sites – like HomeGuide and Google
  6. Communicates clearly and quickly – listens well, answers all your questions clearly, responds to calls and e-mails within an hour or two
  7. Gives a detailed, easy to understand proposal with itemized costs that includes setup and cleanup
  8. Can recommend the best furnace for your size of house and energy needs
  9. Knows the warranty and rebate information on that furnace
  10. Doesn’t ask for a down payment because you’ve already paid for the furnace

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