Furnace Installation Cost


How Much Does Furnace Installation Cost?

Furnaces are conceivably the most popular form of central heating in homes all over America. They are simple to use, efficient and very easy to maintain. However, these benefits come at a hefty price. A furnace installation's cost may be one of the most expensive within your home, but, nonetheless, it’s a one-off investment and its way better than freezing to the bone every single night during the winter season.

Before you go ahead and buy a new furnace or replace an old furnace in your home, make sure you know the average cost to install a furnace so you can avoid overspending or being duped. It would also be wise to brush up on your HVAC lingo in order to stay up to speed when speaking to your contractor.

Understanding Furnace Installation

Though a furnace installation is almost compulsory in every home, you should know that there are many different brands and types available on the market, and not all of them are going to be perfect for your home and its climate.

If you install a furnace with capacity that isn't properly matched to your home's size, you could experience unnecessary expenses like inflated bills, costly repairs, or even total replacement over time. 

Efficiency Ratings Explained

Your furnace's efficiency rating will make all the difference in the world, and the Federal Government encourages this type of installation by offering tax rebates in order to bring down the overall cost to install a furnace in your home.

When considering the type of installation you want for your home, inquire about the efficiency of the furnaces on offer. Though the improvement may cost you some extra cash, it is going to save on your utility costs and it is also an excellent way to reduce your carbon footprint. 

Here's what you need to know about your furnace's rating. 

  • AFUEAnnual Fuel Utilization Efficiency is the ratio used to measure energy output to energy input conveyed as a percentage. A higher percentage indicates a more efficient boiler. A mid-efficiency furnace can operate at anywhere between 78-84% efficiency. High-efficiency furnaces operate closer to 95%. 
  • BTUBritish Thermal Unit indicates the size, or capacity, of a heat pump. There are 12,000 BTUs per ton. A 2-ton heat pump will produce 24,000 BTUs of heating. 
  • HSPFHeating Seasonal Performance Factor refers to the efficiency and gives a rating of the energy usage relative to its heating. A higher HSPF rating means a lower operating cost.

A new furnace installation can warm your home better and save you money by working more efficiently. But it is by no means a simple DIY job. If you want to get a professional installation from a reliable contractor, make sure to compare at least 3 quotes and check references before you have any work done. 

Type of Furnace

Among other features, there are four main types of furnaces to choose from:

Natural Gas Furnace

A gas furnace is arguably the most common type of furnace due to its efficiency. For you to have a natural gas furnace installation, your home needs to be on a gas line to access the fuel. These furnaces are therefore not ideal if you live in an outlying area.

However, natural gas furnaces can be easily converted into a propane furnace using a kit. A furnace conversion kit typically goes for between $25 - $100 depending on your model and includes, valves, jets, burners, and other necessary components. Homeowners can expect to spend between $1,200 - $2,400 on a new natural gas furnace.

Cost Comparison

Consider 5 of the most popular brand comparisons on gas furnace installation. Keep in mind that premium brands will commonly fetch a premium installation price too.

The below installation costs will be based on the needs of an average 1,600 - 2,000 sq ft household using an 80,000 BTU gas furnace with a 3-ton blower installed on the first floor.

Brands Average Gas Furnace Cost Cost Including Installation
Amana $900 $2,400
York $785 $2,100
Ruud $1,200 $3,180
Trane $1,275 $3,560
Lennox $1,400 $4,000

Electric Furnace

Generally, electric furnaces aren't very popular, but they do feature very high-efficiency ratings. These are also clean, reliable, relatively safe, and easy to operate.

However, it is important to note that electric furnaces are still heavy on operating costs due to large amounts of electricity consumption. On average, homeowners spend between $700 - $2,000 on a new electric furnace installation.

Cost Comparison

Consider the following brand comparisons for this type of installation based on a 1,500 sq ft home in a mild climate. 

Brands Average Electric Furnace Cost Cost Including Installation
Armana $460 $1,700
York $600 $2,050
Ruud $520 $1,945
Trane $1,130 $2,265
Lennox $1,145 $2,420

Oil-fired Furnaces

Oil furnaces are an excellent option if your home cannot easily access a natural gas line. With an oil-fired furnace, you can enjoy independence from electric and gas companies while enjoying a very efficient heating system. Though considered obsolete due to the current global oil situation, many oil furnaces are still in use.

They may, however, cost more to install as specialized labor may be required. On average, homeowners can expect to spend between $1,800 - $5,800 on a new oil-fired furnace installation.

Cost Comparison

The costs below will cover installation of an oil furnace best suited to a 1,600 - 2,000 sq ft home. It will also feature a 275-gallon oil tank which would be set up in the yard or basement as a freestanding structure.

Brand Average Oil-fired Furnace Cost Cost Including Installation
Carrier $1,900 $6,050
Armstrong $1,360 $4,640
Ruud $1,660 $5,440
Trane $2,300 $6,870
Lennox $1,950 $6,225

Propane Furnaces

Propane furnaces are not very popular, but you can install them just about anywhere in the country. They are also relatively cheaper when comparing the cost to install furnaces and can be ideal for you if you are working on a budget. On average, most homeowners spend around $1,300 - $2,500 on a propane furnace.

Cost Comparison

The below propane furnace installation costs will be based on the needs of an average 1,600 - 2,000 sq ft household using an 80,000 BTU gas furnace with a 3-ton blower installed on the first floor.

Brands Average Gas Furnace Cost Cost Including Installation
Amana $900 $2,500
York $785 $2,200
Ruud $1,200 $3,280
Trane $1,275 $3,660
Lennox $1,400 $4,100

What Will It Cost To Install My New Furnace?

The average cost to install a furnace will vary based on several factors and could range anywhere from $2,500 to as much as $9,000, depending on your final choice and the type of improvement you want. You will be well advised to get in touch with a licensed contractor in your area to discuss all your options before you finally decide what is going to work within your budget. Nevertheless, most homeowners should only budget for spending in the region of about $3,850 - $4,100

Furnaces are quite expensive to install, but they are an efficient heating source, so many people are moving from the conventional HVAC system to furnace installations. This is due to their efficiency which reduces the total cost of your energy consumption. To ensure your furnace installation provides great service for a long time, make sure there is a warranty included.

Additional Costs To Consider

Your overall cost to install your furnace can include a few hidden ones such as:

  • Replacement and installation of new ducting at $8 - $12 per linear ft.
  • Furnace and ducting inspection costs can add about $100 ( sometimes these are free ).
  • Removal and disposal of the old furnace and equipment can cost around $60, but local recycling companies often do free removals.
  • Air cleaners or humidifiers can add between $400 - $1000.
  • Variable speed blowers, automatic adjusters, and other furnace enhancements can cost between $500 - $800.

Federal Income Tax Credits For Energy Efficiency

Federal tax income credits have been renewed for residential energy efficiency and are available for new purchases. Outfitting your home with Energy Star rated products, which save energy and protect the environment at the same time, are eligible for tax credits and can save you up to 30% on your home's energy costs.

Get in Touch With Local Contractors For a Free Estimate

Because furnace installation often varies by region, it's best to get estimates from registered pros in your local vicinity to get a better idea of what you will be paying. You can find a licensed contractor right now if you are interested in a more accurate breakdown of the cost to install your new furnace.

Simply enter your zip code on this page and request your FREE estimate to get professional assistance without any obligation to purchase, hire, or sign any contracts.


Get Precise Quotes From Contractors In Your Area Today!

Comment on Your Experience
* Email addresses are not displayed.
  This will be the name displayed on your post.
* = required field