If your home’s furnace is currently outdated, replacing it will almost always save you money on heating and furnace repairs. But figuring out the cost for your new furnace and exactly how much you can expect to save is tricky. Here’s what you need to know about this key update to your HVAC system.
How Much Does a New Furnace Usually Cost?
The average cost of replacing a furnace typically runs from about $2,791 to $6,732. Most homeowners pay about $4,632.
However, this price depends on a lot of factors, including:
- Where you live
- The cost of living in your area
- The furnace’s brand
- The efficiency levels of your new and current furnace
- Whether the price for your new furnace includes any warranties
- Cost of installation
- The size of your home
Types of Home Furnaces
Gas furnaces generally cost about $3,000 on average and are the most popular type of furnace. They tend to be well-suited for areas with harsher winters.
Electric furnaces generally cost about $2,000 on average. However, they’re among the more expensive types of furnaces to operate. This makes them popular in areas with milder winters.
Oil furnaces are much more expensive than other types of furnaces – about $6,000. They’re more common in older houses and aren’t widely used anymore.
How Much Does Furnace Installation Cost?
Expect to pay between $3,800 and $7,200 for professional installation of your new furnace. Prices will vary depending on the size and brand of your unit and which professional you hire to install it for you.
What Factors Affect Your Total Furnace Replacement Cost?
You may be wondering why the price range for furnace replacement is so wide. There is a long list of factors that can affect your total out-of-pocket cost, including:
Type of Furnace
The different types of furnaces vary widely in terms of cost to install, so you’ll want to consider all your options before making a decision.
A properly functioning furnace is usually weather-dependent. Consider the average temperature you like to keep your home and the average temperature of the place where you live.
Home Square Footage
Bigger homes have more space, so the new furnace has to be powerful enough to accommodate it.
Existing Insulation Issues
Have an HVAC professional check for insulation issues or air leaks in your house. These concerns, if any, will inform the type of furnace you’ll need in your home.
Electrical Circuit Costs
If you need to relocate your furnace to a new location in your home, you can expect to pay between $500 and $2,000 for that change.
If you’re adding ductwork or circuits for the new furnace (this is most common if you’re moving the furnace or renovating your house), you’ll often need to pay for drywall repairs as well. This typically runs between $250 and $800, depending on how extensive the damage is.
Gas Line and Ventilation Costs
If you’re installing a new gas furnace, you may need to add ventilation or a gas line. This generally costs between $300 and $800. If you’re converting from an electric furnace to a gas one, expect to add between $5,000 and $15,000 to your budget.