Cost to Install a Furnace – 2023 Average Prices
Joe is the creator of Inch Calculator and has over 20 years of experience in engineering and construction. He holds several degrees and certifications.
The heating system in a home is a crucial mechanical system, and for many homes it runs constantly during the cold months keeping the home comfortable and warm. In cold climates the home's heating system is necessary for survival and must be functioning to keep the indoor temperature above freezing.
Keep reading to learn more about the cost of a new furnace.
2023 New Furnace Costs
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| National Average Price | $4,000 |
| Typical Price Range | $2,000 - $5,000 |
| Minimum Price | $1,500 |
| Maximum Price | $8,000 |
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How Much Does a Furnace Cost?
The furnace is the backbone of most heating systems, and the cost can be significant to repair or replace. Most furnaces cost between $2,000 – $5,000 to install, assuming the existing ductwork and piping can be used with the replacement unit. The average price is usually around $4,000.
The average lifespan of a furnace is 15 to 25 years, so the installation is a long-term investment in your home. Learn more about the different types of furnaces and the factors that affect the cost before you purchase a new unit. Get several free estimates for a heating system installation.
Average Furnace Costs
| Fuel Type | Hardware Cost Range | Labor Cost Range |
|---|---|---|
| Gas | $1000-$2000 | $1000-$2500 |
| Electric | $500-$1500 | $1000-$2500 |
| Oil | $1500-$2500 | $2000-$5000 |
| Propane | $1000-$2500 | $1000-$2500 |
Factors Affecting the Cost of a Furnace
Several factors may affect the cost of your furnace installation. First, the size of the furnace needed will affect the cost of the unit.
Homes in colder climates or with more square footage will need a larger heating system with more BTU output to heat, which will cost more. See our BTU calculator to find out how large your furnace should be based on your homes geographic location and square footage.
Installation labor rates will affect the cost of the furnace installation. More experienced installers generally charge more for labor while less experienced installers may charge less for labor.
If your home’s ductwork or piping needs to be installed, replaced, or enhanced that could increase the cost of a heating system significantly.
A permit may be required to install a furnace, and could cost an additional $100-$200.
The removal of the old furnace is often expected, and the disposal may increase the cost of the installation.
Rebates and tax credits may be available for your new furnace, which could offset the cost in your favor. Always be sure to ask your installer which credits are available.
Considering a Furnace Upgrade?
If your current furnace is working fine there may be a good reason to upgrade. If your current unit is near the end of its life it may require more maintenance than a new unit, and in some cases the repair bills may be more than a new unit would cost.
If your current furnace needs repair, or if you’re facing significant maintenance costs it may be worth considering an upgrade. Before replacing the unit, consider the cost of repairs to see if it makes sense to replace.
If your current heating bills are comparatively expensive your current furnace may not be as efficient as it could be. Efficiency is measure by the annual fuel utilization, and the higher the rating the better. The average efficiency rating is 80-95%.
A unit that has a lower efficiency rating requires more energy to heat the same space, which may add significant costs to your monthly energy bill. Consider upgrading your furnace to a more efficient unit to reduce your monthly energy costs.
All pricing information on this page is based on average industry costs, and is subject to variance for project-specific materials, labor rates, and requirements.