According to Home Advisor, the national average cost of installing a new furnace is around $4,000. If you’re installing a new gas furnace, it will likely cost between $3,800 and $10,000. New electric furnaces usually cost $2,000 to $7,000 to install. Costs for new furnace installation can also vary depending on your location and the brand of furnace you choose.
The cost of installing a new furnace is determined by a number of factors. The type of furnace you choose, the specifics of your previous furnace, and the efficiency level of your new furnace are just a few of the things that can affect your expenses. Let’s learn more about what goes into the final bill.
Installation Costs for Different Types of Furnaces
The four most common types of furnaces are natural gas, oil, propane, and electric. Each type has a different average installation cost and unit cost. Let’s learn more about the different types of furnaces and their installation costs.
Natural Gas
The most common furnace in today’s homes is natural gas. On average, a new natural gas furnace costs $2,350 to purchase and anywhere between $3,800 to $10,000 to install. Even though the initial price may seem steep, these are by far the most effective and energy-efficient furnaces out there. Natural gas is also the cleanest fuel to burn.
If you are concerned about your energy bill or if you want to make sure your furnace performs exceptionally through a harsh winter, you might want to consider a high-efficiency model. Installing a new high-efficiency gas furnace usually costs 50% to 100% more than regular models.
Oil Furnaces
Typically, oil furnaces cost $2,300 to purchase and $2,000 to install. While oil tends to burn hotter and heat your home better than natural gas, it is a dirty fuel source that requires frequent furnace maintenance.
Oil is also a more expensive fuel source than natural gas. Though oil furnaces usually provide more heat than natural gas furnaces, they are more expensive to run and take more work to maintain.
Propane Furnaces
On average, a new propane furnace costs $4,000 to purchase and install. While propane furnace installation is cheaper than natural gas, the fuel can be significantly more expensive. To run a propane furnace, you’ll need to have access to propane tanks. You’ll also need to have ample space to store your tanks.
Electric Furnaces
Electric furnaces are usually the easiest to install and the least expensive. A new electric furnace usually costs about $850 to purchase and $2,500 to install.
Electric furnaces are efficient when it comes to heating up your home, but they are not necessarily the most cost-efficient option. You can quickly negate the money you saved by installing an electric furnace with its higher operational costs.
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New Furnace Installation Cost Depend on Efficiency Level
If you’re planning on having a new furnace installed, it’s helpful to know about efficiency levels. The higher the efficiency level of your new furnace, the more you’ll save on your energy bill. However, high-efficiency models can be more expensive to install.
Installing a high-efficiency furnace can cost between $3,000 and $5,000. These types of furnaces generally have an AFUE rating of 93%. The higher the AFUE rating, the more energy efficient the furnace is, so a rating of 93% is exceptional.
Mid-efficiency furnaces usually cost between $1,500 and $2,500 to install. On average, mid-efficiency furnaces have an AFUE rating of 83%. This rating isn’t bad, and you can definitely expect to save on your energy bill with a mid-efficiency model, but not as much as you would with a high-efficiency furnace.
Cost of installation might not be the only expense you’ll be responsible for when purchasing a mid or high-efficiency furnace. It’s possible that you’ll have to pay to upgrade your chimney. Mid-efficiency furnaces need to be vented through a masonry or metal chimney. High-efficiency furnaces will require wall ventilation through a PVC pipe.
Factors That Affect the Price of New Furnace Purchase and Installation
There are many factors that can determine the cost of your new furnace installation. The six most significant are location, brand, space, previous furnace type, ductwork, and labor cost. Let’s learn how these factors can affect how much you pay for your new furnace.
Location
Depending on which state you live in, your furnace expenses can vary. Different states require different permits for owning and operating a furnace. If you live in a rural area, you might not have access to natural gas lines or propane tanks which limits your furnace options and can affect the final price.
Brand
The brand you choose can affect the amount you pay for your furnace because some brands are higher in quality than others. Different brands also have different features that can affect the price. Make sure to research as many brands as possible so that you can find a furnace that works for your budget.
Space
The area in your home where you choose to install your new furnace can play a role in determining the cost. Some spots are difficult to access which may increase labor cost. If you are changing the location of your house’s furnace you should also expect an increase in price.
The size of your house affects how much you’ll pay for a new furnace. Homes with higher square footage require larger furnaces. That means, the larger your house, the more you’ll end up paying for your new furnace.
Previous Furnace Type
The type of furnace you had before your new installation can also affect the price. If you had an electric furnace that is now being replaced with a gas furnace, you will need gas lines installed. Adding gas lines can increase the overall expense by $200 to $500.
Ductwork
Your new furnace won’t work properly if the necessary ductwork, vents, and filters aren’t installed or need adjustment. Depending on how many stories your house has and what material your walls and siding are made out of, new ductwork can add $1,500 to $7,000 on to your furnace installation expenses.
Sometimes, you can avoid replacing inefficient ductwork by having it repaired. On average, duct cleaning and repair can cost anywhere between $1,000 and $5,000.
Labor Cost
If you’re having a new furnace installed, you’ll need to pay people to install it. On average, labor costs between $75 and $100 per hour. This cost can vary depending on the company and how complex the installation is.
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Additional Factors That Can Increase the Cost of Installing a New Furnace
When you’re calculating how much it will cost to install your new furnace, there are a few secondary factors that might affect your final bill. Those include permits, inspections, drywall repairs, and furnace removal cost.
Permits
Before you have your new furnace installed you’ll have to secure the proper legal permits. Depending on your location, permits can cost anywhere from $350 to $1,800. You can expect permit fees to account for as much as 25% of your total expenses.
Inspection
Having an inspection done on your furnace is crucial to your safety and the effectiveness of your new heating system. Inspectors are trained to identify any problems with your new furnace that might prevent it from operating safely and efficiently. Inspection fees usually cost around $100.
Drywall Repair
If your furnace installation requires additional ductwork or circuits, you might need to repair changes made to your wall. These repairs usually cost between $250 and $800. Some installation companies will include drywall repairs in their estimate.
Furnace Removal Cost
If you are replacing an outdated or inefficient furnace, chances are you’ll need help removing your old one. If you’re lucky, recyclers might come get it for free, but if not you’ll have to pay to have it removed.
Furnace removal can cost anywhere from $60 to $500. There is a large range in potential costs because they depend on how easy it is to remove your furnace, how far your house is from the local dumpsite, and your location’s environmental regulations and dumping fees.
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How to Save Money on Your New Furnace Installation
Purchasing and installing a new furnace can be a major expense. Luckily, there are a few ways you can reduce your costs. Here are some things you can do to knock a few bucks off your final bill:
- Shop around for coupons, sales, and rebates from different installation companies and furnace manufacturers
- Set money aside every week for your new furnace – you’ll be surprised how much you can save up if you do it consistently
- Go to your local bank to apply for financing or a loan
- Contact your local government and your utility provider to see if there are any tax incentives or rebates you can take advantage of
- Make sure to get pricing quotes from several installation companies so that you can choose which one is best for your budget
- See if any installation companies offer free quotes
In addition to these tips, purchasing a furnace with an Energy Star® label will help you save money. Energy Star recognizes products that are the most energy efficient. Buying an Energy Star certified product can be expensive upfront, but you’ll save more in the long-term.
How to Maintain Your Newly Installed Furnace
Once you’ve had your new furnace installed, you’ll want to keep it in good working order. The best way to keep your furnace in good condition is to have it serviced on an annual or bi-annual basis
Having your furnace inspected before the cold winter months can protect you and your family from a major heating issue. And experienced technicians can make the necessary adjustments to your furnace so that you can avoid going without heat when outdoor temperatures are at their most frigid.
You can also prevent major problems with your furnace by learning about the early warning signs. When your furnace isn’t functioning properly it will usually tell you by making noises.
