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HVAC Education, Buying Tips, Furnaces

What Is the Cost to Buy or Replace a Home Furnace?

When you buy or replace a furnace, you’re making an investment in your home comfort. The cost depends on two factors: the type of furnace you choose and labor for installation. To choose the right system, you need to consider your preferences.


Type of Furnace

Furnaces have different price levels based on the manufacturer and the features available. Factors that impact the price of a furnace:

  • Power source—gas, propane, oil, or electric
  • Heating stages—the most basic is a single-stage furnace (full heat is on or completely off), which cost less than multi-stage furnaces (two or more heat levels) that provide additional comfort features
  • Energy efficiency levels—higher-efficiency models tend to cost more than basic models, but can reduce monthly bills
  • Furnace size—furnaces come in various heating capacities to support different-sized homes, where smaller capacities are typically a lower price than larger capacities
  • Warranties—warranties and extended service agreements can help reduce the overall cost of a new furnace over time by covering maintenance and repair costs

Furnace Installation

Labor can account for half of the installation cost, and to do so properly, it requires qualified technicians. Factors that affect labor costs:

  • Geographical location—labor costs vary across the United States
  • Size of the system—most installers send two-person teams; bigger projects may require a larger team
  • What is being installed—if the furnace installation includes ductwork or other components, the cost will be higher
  • Location of the furnace in your home—this impacts the amount of time it takes the technicians to complete the installation. Installing a furnace in a garage or an easy-to-access utility closet is faster in comparison to an attic or crawl space
  • Removal and disposal of old equipment

The good news is that a well-maintained furnace can have a lifespan of up to 15-20 years or even longer, so furnace installation costs are an investment in your comfort for years to come.

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