How Much Does Furnace Installation Cost?

Furnace installation is an extensive job that requires an investment – just how much that investment will be is dependent on a number of factors. Before you start shopping, familiarize yourself with the average cost you can expect, as well as the factors affecting the price you’ll pay for your furnace installation.

Average Furnace Installation Cost

Furnace installation in the U.S. costs on average approximately $4,200. The average cost range of a new furnace installation is between approximately $2,500 to around $6,000. Depending on the model you choose and factors affecting installation, your costs could be higher or lower than this range.

Factors Affecting Furnace Installation Cost

Furnace installation cost can vary by thousands of dollars, depending on the model you select. Many factors affect the price of a furnace.

Fuel Type

The type of fuel used affects the cost of a new furnace. Gas furnaces typically cost more than electric models, and require venting that increases the overall cost of the installation job.

When choosing between a gas or electric furnace, you need to look beyond the initial price tag of the equipment. Gas furnaces are typically cheaper to operate, because in most areas of the country, natural gas is cheaper than electricity. Gas furnaces are ideal for homes in areas that experience harsh winters with low temperatures, while electric furnaces are often adequate for heating homes in warmer climates. Before purchasing a new furnace, consider your climate and utility costs to determine if a gas or electric furnace is your best option.

Brand & Features

Different furnace brands offer equipment at varying price points. There are brands that define themselves as economical and budget-friendly, while other brands offer heating equipment at a range of price points and include furnace models with innovative and expanded features.

There will be a price difference between a basic model furnace and one that includes more features. Some homeowners just want a basic model that is affordable, while others are looking for the bells and whistles that improve user experience and comfort – there are furnace options available for everyone. Technology and features such as variable-speed blowers, quiet combustion, and two-stage gas valves will increase the price of the furnace, but offer advantages not found with basic model furnaces.

Capacity

Furnaces come in a range of sizes, according to their capacity to heat. Larger capacity furnaces cost more than smaller capacity models.

A 3,000-square foot home will require a larger furnace than a 1,000-square foot home – furnaces are not “one size fits all”. To determine the appropriate size furnace for your home, your furnace installer will perform Manual J load calculations to determine the home’s heating load. The size of the home is factored in, as well as window efficiency, exposure, construction materials, insulation and other elements.

When it comes to furnace installation, bigger does not mean better in most cases. You want a furnace appropriately sized for your home rather than a “big” one. Oversized and undersized furnaces consume more energy to heat the home and must work harder to do so versus a properly-sized model, increasing operating costs and expenses. Before purchasing a furnace, find the right size unit for your home.

Equipment Energy Efficiency

A furnace’s annual fuel utilization efficiency (AFUE) tells how much of the energy consumed by a furnace is converted into heating. AFUE is expressed as a percentage. Currently, the federal AFUE requirement for new furnaces is 80 percent. There are also furnaces on the market that offer up to 98 percent AFUE.

Generally, the higher the efficiency, the higher the price of the furnace. Despite the initial cost of the furnace, a model that offers higher efficiency will cost less to operate than a lower efficiency model because it creates more heat for the energy it consumes. The cost savings generated by a higher efficiency model can make purchasing a furnace with a high AFUE a more affordable option in the long run.

Installation Requirements

The new furnace itself may not be the only component required for a furnace installation. When converting to a forced air system, a duct system also must be installed. Ductwork improvements, such as duct sealing, may also be required in a home with an existing duct system to facilitate proper functioning and efficiency of the new furnace. When converting from electric to gas heat, gas lines may need to be ran if the home was not previously set up for gas heating.

These additional requirements will increase the cost of the overall furnace installation. When you plan for a new furnace installation, don’t only consider the price tag of the equipment itself – additional work may be required so your new furnace serves your home reliably and efficiently.