How Much Does a New Furnace Cost?

If you’re considering buying a new furnace, the first question you may naturally have is – “How much is this going to cost?” After all, upgrading your HVAC system is a significant investment, but a much needed one if it’s old, inefficient, or frequently breaks down. HVAC.com explains the cost of a new furnace and the factors that influence the price.

Average Furnace Cost: What You Can Expect to Pay

A new furnace typically costs between $3,000 and $10,000, including installation. However, this range can fluctuate based on factors like the type of furnace you choose, the size of your home, the brand, and how complex the installation is. Knowing these factors can help you better estimate the costs of a new furnace so you can budget accordingly.

Factors That Affect Furnace Replacement Cost

1. Furnace Type and Fuel Source

The type of furnace you choose is one of the biggest factors influencing the price. Each comes with different costs:

• Gas Furnaces: Gas furnaces are the most common choice in many areas because they’re highly efficient and relatively affordable to operate. 
• Electric Furnaces: Electric furnaces are usually less expensive upfront and tend to last longer. However, they can be more costly to run due to higher electricity prices.
• Oil Furnaces: If you live in an area without access to natural gas, oil furnaces are an option. They tend to be less efficient and more expensive to maintain than gas furnaces.
• Propane Furnaces: These furnaces are similar to gas furnaces but use propane as a fuel source, often costing slightly more to install.

2. BTU Rating

The size of your furnace, measured in BTUs (British Thermal Units), also significantly impacts the price of a new furnace. A higher BTU rating means the furnace can heat a larger space but also comes with a higher price tag. Furnaces typically range from 40,000 to 140,000 BTUs, and the size you’ll need largely depends on the size of your home and other factors that impact the home’s heating load.

• Small Homes (Under 1,000 Sq Ft): Smaller homes typically use furnaces between 40,000 to 60,000 BTUs, which generally cost less than larger models.
• Average Homes (1,000 - 2,000 Sq Ft): Homes in this size range typically require furnaces of 60,000 to 100,000 BTUs, which are mid-range in terms of cost.
• Large Homes (Over 2,000 Sq Ft): For large homes, furnaces may need to be 100,000 to 140,000 BTUs, which is often on the higher end of the cost spectrum.

Before buying a furnace, have an HVAC technician perform a load calculation on your home to determine the correct size furnace. An oversized or undersized furnace can lead to inefficient operation and higher energy bills.

3. Efficiency Ratings

Furnaces come with different efficiency ratings, measured by the Annual Fuel Utilization Efficiency (AFUE) percentage. A higher AFUE rating means more heat is generated per unit of fuel, making the furnace more efficient. High-efficiency models (90-98% AFUE) cost more upfront but can significantly lower your monthly heating bills compared to standard-efficiency models (80-89% AFUE).

4. Single-Stage vs. Two-Stage vs. Modulating Furnaces

The speed and functionality of the furnace you choose also affect its price. Furnaces can be single-stage, two-stage, or modulating:

• Single-Stage Furnaces: These have only one heat output setting and are generally the least expensive, but they can cause temperature fluctuations. 
• Two-Stage Furnaces: These furnaces have two heat settings – high and low – offering more consistent temperatures and improved efficiency. They are usually more expensive than single-stage furnaces, but cost less than modulating furnaces.
• Modulating Furnaces: These are the most advanced and efficient, adjusting heat output in small increments. They provide the best comfort and efficiency but come with a higher price tag.

5. Brand

The brand of furnace you choose will also impact the overall cost of a furnace. Well-known brands with a reputation for reliability and strong warranties often come at a premium price compared to lesser-known brands. Popular brands are often more expensive but are known for their durability and customer satisfaction.

6. Installation Complexity and Labor Costs

Installation costs can vary significantly depending on your existing setup. Factors like the need for new ductwork, electrical upgrades, or modifications to accommodate the new furnace can add to the overall expense. Labor rates also vary by area, which can make furnace replacement cost more expensive in certain locations versus others.

7. Additional Features and Smart Controls

Many new furnace models come with options for advanced features such as variable speed blowers, zoned heating, and communicating sensors that allow for better control and improved efficiency. While these features can enhance comfort and reduce energy costs, they also add to the initial price of the furnace.