Furnace Replacement Cost


How Much Does Furnace Replacement Cost?

When your home heating system isn't really getting hot anymore or the unit fails to even come on, and you've checked the thermostat and the pilot light, you may be ready for a furnace replacement.

Before you order a new unit from a catalog or website, you'll want to consult with a furnace replacement professional to ensure that you're selecting the best and most cost-efficient model for the size of your home and geographic region. Below we will discuss the costs involved in replacing various different types of furnace.

Before you begin hunting for a new furnace, though, make sure you are up to date with the average cost to replace a furnace so you can avoid overspending. It would also be wise to brush up on your HVAC terminology so you are up to speed when speaking with a contractor.

Consider the following terms:

  • AFUE: Also known as the Annual Fuel Utilization Efficiency, it is the ratio used to measure energy output to energy input and is conveyed as a percentage. The higher the percentage, the more efficient the boiler.
  • BTU: This is a British Thermal Unit, which is relative to the capacity or size of a furnace. There are 12,000 BTUs per ton. A 2-ton furnace will produce 24,000 BTUs of heating
  • HSPF: This stands for Heating Seasonal Performance Factor, and refers to heating efficiency. This is the energy usage rating relative to its heating. A higher HSPF rating means a lower operating cost.

6 Warning Signs You May Need Furnace Replacement

A home requires an efficient and safe heating system. Old furnaces can fail, but there are usually telltale signs of a problem. You definitely don't want to be sorting out your heating system on a cold winters night. Consider these 6 signs that you may be in need of a furnace replacement:

1. What is the age of your furnace?

Their average lifespan is 16 to 20 years. If it has a pilot light it could be 25 years old or more, it may be time for a furnace replacement. An old furnace is also unable to clean the air with sufficient moisture. If your home constantly feels stuffy and stale, there's something wrong. Dust, pollen, dry throats, skin, and cracking furniture are all signs that your furnace has become inefficient.

2. Are your gas and utility bills rising?

Over time a furnace will become less efficient, running for longer to maintain the same level of heating. This will push gas and heating bills up significantly which could be spent on a new, more efficient furnace instead. Also, note that energy savings on a new furnace could end up paying for the furnace replacement over time.

3. Is the thermostat still keeping you comfy?

Are any rooms in the home starting to feel cold when others are warm? Constantly needing to adjust the thermostat is a sign your furnace could be inefficient for your homes heating needs.

4. What color is your burner flame, blue or yellow?

A yellow or flickering flame is an indication of excess carbon monoxide production by your furnace within the home. Carbon monoxide is poisonous in enclosed spaces. Also keep an eye on soot build up in the furnace, moisture on windows, rusting flue pipes, and water leaks at the base of the furnace chimney.

5. Any strange noises coming from the furnace?

Outdated furnaces will begin to make strange noises like banging, rattling, popping, and squealing toward the end of their life. Listen if the furnace blower runs excessively, switches on and off repeatedly, or blows cold air. All warning signs of an impending replacement.

6. How is your families health?

As furnaces age, they can develop hairline cracks inside the heat exchanger releasing carbon monoxide. If your family exhibits frequent headaches, burning eyes and nose, nausea, and flu symptoms, it is highly likely there is a leak in the system. Get in touch with an HVAC leak technician asap.

While everyone hopes their home appliances last as long as possible, there's no doubting their finite lifespans. Regardless of the maintenance performed, most homeowners will deal with a furnace replacement during the lifetime of their home. A good idea regarding prices and equipment options is to consult with local furnace replacement contractors and compare quotes before going ahead with replacement.

How Much Will It Cost To Replace a Furnace?

furnace replacement job can range in price depending on the type of unit you select, the brand name, and whether or not utility lines need to be run in your home. A new furnace, including installation to sufficiently heat a 2,000 sq ft home, could range anywhere between $2,500 for an electric furnace, and up to as much as $9,000 for a natural gas furnace installation or conversion. The average American homeowner will spend around $4,000 to replace a propane or oil-fired furnace.

The more expensive the furnace itself, the more you should expect the estimate to be for installation. Contractors that specialize in furnace replacement, who only deal with high-end brands, will also generally charge a premium for their installation services as well.

Types Of Furnace Fuels

  • Natural gas: Now natural gas is by and large the most popular furnace type when homeowners face a furnace replacement choice. Many recently constructed homes have natural gas lines already running into the house, but some may need to have the gas hookups run from the street utility line. The regular energy cost of natural gas is typically the cheapest.
  • Propane: Homeowners with natural gas can easily convert to propane if they'd like, but in most areas, propane will have to be stored on the property in a tank which can be refilled or replaced occasionally. The conversion costs are minimal but the advantages of propane over natural gas are really quite minimal as well.
  • Electric: This type of furnace is generally only seen in areas that experience only a very mild cold season. With extended and high-output use, even the most energy efficient electric models have a higher energy cost than gas and propane.
  • Oil: If you had an oil furnace and you're thinking of replacing it, chances are you won't want to opt for another one. The technology is almost completely obsolete as oil prices are generally far higher than any other energy type.

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 replacement, your home needs to be on a gas line, as this is the only way it can access the fuel. These furnaces are therefore not ideal if you live in an outlying area. Because of this, 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.

Consider the following brand comparisons on gas furnace installation. 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

These furnace installations are very common because they are clean, relatively safe, easy to operate and reliable. However, it is important to consider that electric furnaces can have quite an effect on your utility costs. 

Generally, electric furnaces aren't very popular, but they do feature very high-efficiency ratings. They 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 replacement.

Consider the following cost to replace a furnace based on a 1,500 sq ft home in a mild climate. Keep in mind that premium brands will commonly fetch a premium installation price too.

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

These 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. On average, homeowners can expect to spend between $1,800 - $5,800 on a new oil-fired furnace replacement.

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

These furnaces are not very popular, but you can install them anywhere in the country. They are also relatively cheaper compared to the other types of furnace installations 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.

When considering the type of furnace replacement you want for your home, inquire about improving the efficiency of the furnaces they have 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. 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

Additional Costs To Consider

Your overall cost to replace a furnace may also include a few hidden repairs such as:

  • Replacement and installation of new ducting could cost between $1,000 - $5,000 ($8 - $12 per linear ft). Converting from an electric furnace to a gas furnace will require new ducting and piping installation which can cost between $5,000 - $15,000.
  • Furnace and ducting inspection costs can add about $100, sometimes these are free.
  • Removal and disposal of the old furnace and equipment will cost around $60. Local recycling companies also sometimes 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.

Furnace Replacement Efficiency

Aside from the cost of the new unit and installation, a third cost consideration goes into any furnace replacement job. This is regarding the average utility cost for powering your furnace.

Fortunately, any furnace you may purchase has a standard rating called AFUE which stands for Annual Fuel Usage Efficiency. A moderately efficient unit will typically operate between an 80 and 85% AFUE rating, whereas a high-efficiency unit will have a rating above 85%. The higher the rating of your new unit, the higher the overall cost to replace a furnace.

A big benefit of running an efficient furnace is the fact that you can apply for Federal Income Tax Credits. Energy Star rated furnaces and appliances can save energy, money, and the environment. Save up to 10% on energy when installing Energy Star certified furnaces.

How To Get a Free Quote

If your furnace isn't looking too healthy, why not get a free furnace replacement quote from a professional installer near you? All you have to do is simply enter your home zip code in the space provided on this page.

Local pros will reach out to you, providing a FREE, no-obligation estimate on the cost to replace your furnace. No purchase or hiring is mandatory and there are no contracts to sign when you enter your details.

It's a great way to decide what is possible when working within a budget. There isn't an easier way to go about it, so why not give it a try now!


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